Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fees at Rule 7036 To Withdraw the Nasdaq Market Analytics Data Package From Sale, 54437-54439 [2017-24937]
Download as PDF
<![CDATA[
Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices
redemptions of Shares (and that Shares
are not individually redeemable); (b)
NYSE Arca Rule 9.2–E (a), which
imposes a duty of due diligence on its
ETP Holders to learn the essential facts
relating to every customer prior to
trading the Shares; (c) the requirement
that ETP Holders deliver a prospectus to
investors purchasing newly issued
Shares prior to or concurrently with the
confirmation of a transaction; (d) how
information regarding the IOPV and the
Disclosed Portfolio is disseminated; (e)
the risks involved in trading the Shares
during the opening and late trading
sessions when an updated IOPV will not
be calculated or publicly disseminated;
and (f) trading information.
(8) The Exchange represents that, for
the initial and continued listing of the
Shares, the Trust must be in compliance
with NYSE Arca Rule 5.3–E and Rule
10A–3 under the Act.
(9) A minimum of 100,000 Shares
will be outstanding at the start of
trading on the Exchange.
(10) All statements and
representations made in this filing
regarding (a) the description of the
portfolio of the Fund and Benchmark,
(b) limitations on portfolio of the Fund
and Benchmark, or (c) the applicability
of Exchange listing rules specified in
this rule filing shall constitute
continued listing requirements for
listing the Shares on the Exchange.
(11) In addition, the issuer has
represented to the Exchange that it will
advise the Exchange of any failure by
the Fund to comply with the continued
listing requirements, and, pursuant to
its obligations under Section 19(g)(1) of
the Act, the Exchange will monitor for
compliance with the continued listing
requirements. If a Fund is not in
compliance with the applicable listing
requirements, the Exchange will
commence delisting procedures under
NYSE Arca Rule 5.5–E (m).
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
Amendment No. 3.
sradovich on DSK3GMQ082PROD with NOTICES
IV. Solicitation of Comments on
Amendment No. 3 to the Proposed Rule
Change
Interested persons are invited to
submit written data, views, and
arguments concerning whether
Amendment No. 3 are 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
VerDate Sep<11>2014
18:32 Nov 16, 2017
Jkt 244001
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2017–85 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–NYSEArca–2017–85. 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 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2017–85, and
should be submitted on or before
December 8, 2017.
V. Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment No. 3
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment No. 3, prior to
the thirtieth day after the date of
publication of notice of the filing of
Amendment No. 3 in the Federal
Register. Amendment No. 3
supplements the proposed rule change
by, among other things: (1) Representing
that the VSTOXX levels will be widely
disseminated by major market data
vendors on a real-time basis throughout
each trading day; (2) expanding its
representation regarding when the
Sponsor would erect a ‘‘fire wall,’’ and
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
54437
representing that the Sponsor will
maintain the ‘‘fire wall’’ it implemented
regarding access to information
concerning the composition and/or
changes to the Fund’s portfolio; (3)
narrowing the list of the Fund’s
permitted investments to exclude
forwards; (4) supplementing its
description of the availability of price
information for the Fund’s permitted
investments; (5) providing information
regarding the dissemination of the
Trust’s NAV; and (6) making
representations regarding the
Exchange’s surveillance of Managed
Trust Securities. These changes assisted
the Commission in evaluating whether
the proposal would be consistent with
Section 6(b)(5) of the Act. Accordingly,
the Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,30 to approve the proposed rule
change, as modified by Amendment No.
3, on an accelerated basis.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,31 that the
proposed rule change (SR–NYSEArca–
2017–85), as modified by Amendment
No. 3 be, and it hereby is, approved on
an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–24938 Filed 11–16–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82065; File No. SR–
NASDAQ–2017–117]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Fees at Rule 7036 To
Withdraw the Nasdaq Market Analytics
Data Package From Sale
November 13, 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 October
31, 2017, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
30 15
U.S.C. 78s(b)(2).
31 Id.
32 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\17NON1.SGM
17NON1
54438
Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices
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 the
Exchange’s fees at Rule 7036 to
withdraw the Nasdaq Market Analytics
Data Package from sale.
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.
sradovich on DSK3GMQ082PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to withdraw the Nasdaq
Market Analytics Data Package from
sale. The Nasdaq Market Analytics Data
Package, established in 2006,3 consists
of four products: (i) Market Velocity, (ii)
Market Forces, (iii) Competitive Volume
Weighted Average Price (VWAP)
Benchmark, and (iv) Competitive VWAP
Leaders.
Market Velocity and Market Forces
are real-time data products. Market
Velocity measures the frequency and
size of orders submitted to the trading
system. Market Forces separates orders
into buy and sell categorizes to indicate
market direction. Market Velocity and
Market Forces may include orders not
visible in existing quote and order data
feeds.
The Competitive VWAP Benchmark is
an intra-day, query-response product
3 See Securities Exchange Act Release No. 54003
(June 16, 2006), 71 FR 36141 (June 23, 2006) (SR–
NASD–2006–056).
VerDate Sep<11>2014
18:32 Nov 16, 2017
Jkt 244001
that provides the best and worst average
price performance by market makers
trading on the Nasdaq Market Center
execution system. The Benchmark is
used to compare the purchaser’s trade
performance to those benchmarks.
Competitive VWAP Leaders is a delayed
product that identifies participants with
the most experience trading a particular
stock or type of stock, ranking
participants by share volume, weighted
by the difference between market
participant VWAP and overall VWAP.
The Exchange proposes to withdraw
the Nasdaq Market Analytics Data
Package from the market. The Package
was introduced in 2006, and has
remained basically unchanged since
then, notwithstanding substantial
changes in technology and analytical
techniques over that period. The
product has generated little customer
interest, and only a small number of
customers currently purchase
subscriptions.4
Recently, customers have inquired
about possible modifications to the
product. Specifically, customers
expressed concern that data contained
in the product may reveal too much
information about the trading strategies
of participants on the Exchange. While
the Exchange does not believe that these
concerns are well-founded, given that
the information content of the product
has been stable over time and the
number of customer for the product is
extremely small, the Exchange
continually evaluates the views of its
customers in developing and
maintaining its product offerings and
initiated a review of the product.
Upon such review, the Exchange has
determined that modifying the product
in keeping with customer requests
would not be cost-effective in light of
the small amount of revenue that the
product generates. Given the age of the
product, the small amount of revenue
generated, and the cost of modifications,
the Exchange has decided to withdraw
the product from the market, effective
immediately.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Section 6(b)(5) of the Act,6
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
4 Indeed, neither the Competitive VWAP
Benchmark nor the Competitive VWAP Leaders has
any customers at all.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
open market and a national market
system, and, in general to protect
investors and the public interest.
Specifically, the proposed withdrawal
of the Nasdaq Market Analytics Data
Package will remove a potentially
controversial product from the market.
In light of the age of the product, the
small number of subscribers for that
product, the fact that modifying the
product would not be cost-effective, and
the concerns expressed by some market
participants, the Exchange believes that
the proposal to remove this product
from the market strikes the correct
balance 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.
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.
The proposed withdrawal of the
Nasdaq Market Analytics Data Package
is an example of the impact of market
forces on the Exchange. Because
customers had not purchased the
product in sufficient numbers to
economically justify further investment,
the Exchange decided to discontinue the
product. This is precisely how
competitive markets operate.
The withdrawal of the Nasdaq Market
Analytics Data Package will not impose
any burden on competition as the
Package will no longer be offered.
E:\FR\FM\17NON1.SGM
17NON1
Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / 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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 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 asked
the Commission to waive the 30-day
operative delay. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest. The Commission notes that the
Exchange’s customers have expressed
concern that data contained in the
Nasdaq Market Analytics Data Package
may reveal too much information about
the trading strategies of participants on
the Exchange, and have inquired about
possible modifications to the product.
The Commission also notes that, in light
of the age of the product, the small
number of subscribers, the cost of
modifying the product, and the
concerns raised by some market
participants, the Exchange has
determined to remove the product.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.11
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Commission has waived this requirement.
9 17 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 has also
considered the proposed rule’s impact on
sradovich on DSK3GMQ082PROD with NOTICES
8 17
VerDate Sep<11>2014
18:32 Nov 16, 2017
Jkt 244001
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. 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–2017–117 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–2017–117. 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 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2017–117 and
should be submitted on or before
December 8, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–24937 Filed 11–16–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82067; File No. SR–OCC–
2015–02]
In the Matter of the Petitions of: Virtu
Financial Inc. and Virtu Americas, LLC
and Susquehanna International Group,
et al.; Order Granting Motion To
Substitute Parties and Motion for
Extension of Time; Securities
Exchange Act of 1934
November 13, 2017.
On November 2, 2017, Virtu Financial
Inc. and Virtu Americas LLC
(collectively ‘‘Virtu’’) filed an
Unopposed Motion to Substitute Virtu
Financial Inc. and Virtu Americas LLC
for Petitioner KCG Holdings, Inc.
(‘‘KCG’’) pursuant to Rules 102 and
200(d) of the Commission Rules of
Practice.1 In its motion, Virtu represents
that it acquired KCG earlier this year
and represents the successor in interest
to KCG and its subsidiary. Virtu
represents that it intends to participate
in the matter pertaining to SR–OCC–
2015–02 moving forward. Virtu also
represents that the motion is
unopposed. The Commission believes
that it is appropriate to grant the
motion.
On November 7, 2017, Petitioners
Susquehanna International Group, LLP,
BOX Options Exchange, LLC, MIAX
International Securities Exchange, LLC,
and Virtu, (collectively ‘‘Petitioners’’)
filed an Unopposed Motion for
Extension of Time pursuant to Rule 161
of the Commission Rules of Practice 2 to
extend the time previously provided for
in the Commission’s September 14,
2017 Corrected Order Scheduling Filing
12 17
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
54439
CFR 200.30–3(a)(12).
CFR 201.102 and 200(d).
2 17 CFR 201.161.
1 17
E:\FR\FM\17NON1.SGM
17NON1
]]>Agencies
[Federal Register Volume 82, Number 221 (Friday, November 17, 2017)]
[Notices]
[Pages 54437-54439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24937]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82065; File No. SR-NASDAQ-2017-117]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange's Fees at Rule 7036 To Withdraw the Nasdaq Market
Analytics Data Package From Sale
November 13, 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 October 31, 2017, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule
[[Page 54438]]
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 Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's fees at Rule 7036 to
withdraw the Nasdaq Market Analytics Data Package from sale.
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to withdraw the Nasdaq
Market Analytics Data Package from sale. The Nasdaq Market Analytics
Data Package, established in 2006,\3\ consists of four products: (i)
Market Velocity, (ii) Market Forces, (iii) Competitive Volume Weighted
Average Price (VWAP) Benchmark, and (iv) Competitive VWAP Leaders.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 54003 (June 16,
2006), 71 FR 36141 (June 23, 2006) (SR-NASD-2006-056).
---------------------------------------------------------------------------
Market Velocity and Market Forces are real-time data products.
Market Velocity measures the frequency and size of orders submitted to
the trading system. Market Forces separates orders into buy and sell
categorizes to indicate market direction. Market Velocity and Market
Forces may include orders not visible in existing quote and order data
feeds.
The Competitive VWAP Benchmark is an intra-day, query-response
product that provides the best and worst average price performance by
market makers trading on the Nasdaq Market Center execution system. The
Benchmark is used to compare the purchaser's trade performance to those
benchmarks. Competitive VWAP Leaders is a delayed product that
identifies participants with the most experience trading a particular
stock or type of stock, ranking participants by share volume, weighted
by the difference between market participant VWAP and overall VWAP.
The Exchange proposes to withdraw the Nasdaq Market Analytics Data
Package from the market. The Package was introduced in 2006, and has
remained basically unchanged since then, notwithstanding substantial
changes in technology and analytical techniques over that period. The
product has generated little customer interest, and only a small number
of customers currently purchase subscriptions.\4\
---------------------------------------------------------------------------
\4\ Indeed, neither the Competitive VWAP Benchmark nor the
Competitive VWAP Leaders has any customers at all.
---------------------------------------------------------------------------
Recently, customers have inquired about possible modifications to
the product. Specifically, customers expressed concern that data
contained in the product may reveal too much information about the
trading strategies of participants on the Exchange. While the Exchange
does not believe that these concerns are well-founded, given that the
information content of the product has been stable over time and the
number of customer for the product is extremely small, the Exchange
continually evaluates the views of its customers in developing and
maintaining its product offerings and initiated a review of the
product.
Upon such review, the Exchange has determined that modifying the
product in keeping with customer requests would not be cost-effective
in light of the small amount of revenue that the product generates.
Given the age of the product, the small amount of revenue generated,
and the cost of modifications, the Exchange has decided to withdraw the
product from the market, effective immediately.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\6\ 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.
Specifically, the proposed withdrawal of the Nasdaq Market Analytics
Data Package will remove a potentially controversial product from the
market. In light of the age of the product, the small number of
subscribers for that product, the fact that modifying the product would
not be cost-effective, and the concerns expressed by some market
participants, the Exchange believes that the proposal to remove this
product from the market strikes the correct balance 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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. 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.
The proposed withdrawal of the Nasdaq Market Analytics Data Package
is an example of the impact of market forces on the Exchange. Because
customers had not purchased the product in sufficient numbers to
economically justify further investment, the Exchange decided to
discontinue the product. This is precisely how competitive markets
operate.
The withdrawal of the Nasdaq Market Analytics Data Package will not
impose any burden on competition as the Package will no longer be
offered.
[[Page 54439]]
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 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) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and the text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission has waived this requirement.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \9\ 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 asked the Commission to waive the 30-day operative delay. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission notes that the Exchange's customers have expressed
concern that data contained in the Nasdaq Market Analytics Data Package
may reveal too much information about the trading strategies of
participants on the Exchange, and have inquired about possible
modifications to the product. The Commission also notes that, in light
of the age of the product, the small number of subscribers, the cost of
modifying the product, and the concerns raised by some market
participants, the Exchange has determined to remove the product.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposal operative upon filing.\11\
---------------------------------------------------------------------------
\9\ 17 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 has also 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 the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. 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-2017-117 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-2017-117. 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 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2017-117 and should
be submitted on or before December 8, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24937 Filed 11-16-17; 8:45 am]
BILLING CODE 8011-01-P
