Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Port-Related Fees, at Equity 7, Section 115, and Options 7, Section 3, 56737-56739 [2022-19917]
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Federal Register / Vol. 87, No. 178 / Thursday, September 15, 2022 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95721; File No. SR–BX–
2022–016]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its PortRelated Fees, at Equity 7, Section 115,
and Options 7, Section 3
September 9, 2022.
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
September 1, 2022, Nasdaq BX, Inc.
(‘‘BX’’ 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 Equity 7,
Section 115, and Options 7, Section 3,
as described further below. The text of
the proposed rule change is available on
the Exchange’s website at https://
listingcenter.nasdaq.com/rulebook/bx/
rules, at the principal office of the
Exchange, and at the Commission’s
Public Reference Room.
lotter on DSK11XQN23PROD with NOTICES1
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 (i) amend Equity 7, Section
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
16:56 Sep 14, 2022
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115, and Options 7, Section 3, to prorate
port fees for the first month of service,
(ii) add language to Equity 7, Section
115, and Options 7, Section 3, to clarify
that port fees for cancelled services will
continue to be charged for the
remainder of month, and (iii) clarify that
Nasdaq Testing Facility (‘‘NTF’’) ports
are provided at no cost in Options 7,
Section 3.
Currently, the Exchange does not
prorate port connectivity fees under
either its equity or options rules. Thus,
participants are assessed a full month’s
fee if they direct the Exchange to make
the subscribed connectivity live on any
day of the month, including the last day
thereof. Participants are also assessed a
full month’s port fee if they cancel
service during the month.
The Exchange proposes to provide
prorated port fees for the first month of
service for new requests. By prorating
the first month’s fees, the Exchange
would charge participants port fees only
for the days in which the participants
are connected to the Exchange during
the first month of service. The Exchange
proposes to continue the current
practice of charging port fees for the
remainder of the month upon
cancellation. If a participant starts and
cancels service in the same month, the
participant would not be billed for those
days prior to the service start date but
would be billed for the remainder of the
month, including after the service is
cancelled.3
The Exchange believes it is important
for participants to have the option to
establish new connections to the
Exchange at any time during the month
without being hampered by a full month
charge irrespective of when during the
month service begins. Moreover, other
exchanges also charge new ports on a
prorated basis for the first month of
service.4
The Exchange also proposes to add
language to Options 7, Section 3(iv) to
clarify the Exchange’s existing practice
that NTF Ports are provided at no cost.
The NTF provides subscribers with a
virtual System test environment that
closely approximates the production
environment on which they may test
their automated systems that integrate
with the Exchange. For example, the
NTF provides subscribers a virtual
3 For example, if a participant orders a port on
September 4, 2022 and cancels the port on
September 16, 2022, the participant would be
charged the prorated port fee for September 5, 2022
through September 30, 2022.
4 See, e.g., Cboe BZX U.S. Equities Exchange Fee
Schedule, available at https://markets.cboe.com/us/
equities/membership/fee_schedule/bzx/; New York
Stock Exchange Price List 2022, available at https://
www.nyse.com/publicdocs/nyse/markets/nyse/
NYSE_Price_List.pdf.
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
56737
System environment for testing
upcoming releases and product
enhancements, as well as testing firm
software prior to implementation. The
Exchange proposes adding express
language in the options Rules to provide
increased clarity to market participants.
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 Sections 6(b)(4) and 6(b)(5)
of the Act,6 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’s proposed changes to
its port fee schedule are reasonable in
several respects. As a threshold matter,
the Exchange is subject to significant
competitive forces in the market for
options and equity securities transaction
services that constrain its pricing
determinations in that market. The
Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 7
The Exchange believes that it is
reasonable to prorate port fees for the
first month of connectivity. As
discussed above, the Exchange believes
it is important for participants to have
the flexibility to establish new
connections to the Exchange at any time
during the month without being
hampered by a full month charge. For
example, the Exchange believes it is
reasonable to charge a user who begins
a subscription on the last day of the
month to be charged only for use of a
port for that day. As noted above, other
exchanges already charge their
customers for new ports on a prorated
basis for the first month of service.8 The
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
7 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
8 Supra note 4.
6 15
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56738
Federal Register / Vol. 87, No. 178 / Thursday, September 15, 2022 / Notices
proposed language describing the
Exchange’s practice to bill for the
remainder of the month upon
cancellation is intended only to clarify
the existing practice and limit any
confusion.
The Exchange believes that the
proposal is also equitable and not
unfairly discriminatory because the
proposed change to prorate port fees for
the first month of service and continue
to charge for the remainder of the month
upon cancellation will apply uniformly
to all similarly situated participants.
Removing the requirement to pay a full
month’s port fee if a user joins any day
other than the first of the month is userfriendly and provides users incentive to
subscribe at their convenience. The
Exchange believes that prorating the
fees for the first month of a user’s
subscription will ensure that the fees are
more equitable to a user’s utilization of
the products. All users will benefit from
the proration of the first month of their
subscription.
The Exchange also believes that it is
just and equitable, and in the interests
of market participants, for the Exchange
to clarify the Exchange’s existing
practice to provide NTF ports at no cost
in Options 7, Section 3(iv), codifying
existing practice where it is not
expressly stated in the Rule. The
Exchange believes that market
participants will benefit from increased
clarity, which will help limit any
potential confusion in the future.
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.
lotter on DSK11XQN23PROD with NOTICES1
Intramarket Competition
The Exchange does not believe that its
proposal will place any category of
Exchange participants at a competitive
disadvantage. The proposed change to
prorate port fees for the first month of
service will apply uniformly to all
similarly situated participants. All users
will receive the benefit of a proration for
the first month of port connectivity,
which will enable users to save money
that they otherwise would incur under
the Exchange’s current rules that do not
provide for proration. The proposed
language describing the Exchange’s
practice to bill for the remainder of the
month upon cancellation, as well as the
proposed language to the options Rules
that NTF ports are provided at no cost,
merely codify and clarify existing
practices of the Exchange.
VerDate Sep<11>2014
16:56 Sep 14, 2022
Jkt 256001
Intermarket Competition
The Exchange believes that the
proposed change to its port fee schedule
to provide proration for the first month
of port connectivity will not impose a
burden on competition because the
Exchange’s execution services are
completely voluntary and subject to
extensive competition both from the
other live exchanges and from offexchange venues, which include
alternative trading systems that trade
national market system stock. Moreover,
as noted above, other exchanges
currently charge new ports on a
prorated basis for the first month of
service.9 The proposed changes will
help ensure that the Exchange’s billing
practices are commensurate with
competitors.
The proposed change to the
Exchange’s port fee schedule is
reflective of this competition because, as
a threshold issue, the Exchange is a
relatively small market so its ability to
burden intermarket competition is
limited. In this regard, even the largest
U.S. equities exchange by volume only
has 17–18% market share, which in
most markets could hardly be
categorized as having enough market
power to burden competition.
Accordingly, the Exchange does not
believe that the proposed change will
impair the ability of members,
participants, or competing order
execution venues to maintain their
competitive standing in the financial
markets.
The proposed change to clarify that
NTF ports are provided at no cost is
designed to expressly state existing
practice without changing its operation
and, therefore, the Exchange believes
that the proposed change will not
impose a burden on competition.
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)
of the Act 10 and paragraph (f) of Rule
19b–4 11 thereunder.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
9 Supra
note 4.
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f).
10 15
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
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–
BX–2022–016 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–BX–2022–016. 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 website (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 website 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
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Federal Register / Vol. 87, No. 178 / Thursday, September 15, 2022 / Notices
submissions should refer to File
Number SR–BX–2022–016 and should
be submitted on or before October 6,
2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Deputy Secretary.
2000, and Delegation of Authority No.
523 of December 22, 2021.
Stacy E. White,
Deputy Assistant Secretary for Professional
and Cultural Exchanges, Bureau of
Educational and Cultural Affairs, Department
of State.
[FR Doc. 2022–19938 Filed 9–14–22; 8:45 am]
BILLING CODE 4710–05–P
[FR Doc. 2022–19917 Filed 9–14–22; 8:45 am]
DEPARTMENT OF STATE
BILLING CODE 8011–01–P
[Public Notice: 11823]
DEPARTMENT OF STATE
[Public Notice: 11859]
Notice of Determinations; Culturally
Significant Objects Being Imported for
Exhibition—Determinations: ‘‘Picasso
Cut Papers’’ Exhibition
Notice is hereby given of the
following determinations: I hereby
determine that certain objects being
imported from abroad pursuant to an
agreement with their foreign owner or
custodian for temporary display in the
exhibition ‘‘Picasso Cut Papers’’ at the
Armand Hammer Museum of Art and
Cultural Center, Los Angeles, California,
and at possible additional exhibitions or
venues yet to be determined, are of
cultural significance, and, further, that
their temporary exhibition or display
within the United States as
aforementioned is in the national
interest. I have ordered that Public
Notice of these determinations be
published in the Federal Register.
SUMMARY:
Chi
D. Tran, Program Administrator, Office
of the Legal Adviser, U.S. Department of
State (telephone: 202–632–6471; email:
section2459@state.gov). The mailing
address is U.S. Department of State, L/
PD, 2200 C Street NW (SA–5), Suite
5H03, Washington, DC 20522–0505.
FOR FURTHER INFORMATION CONTACT:
The
foregoing determinations were made
pursuant to the authority vested in me
by the Act of October 19, 1965 (79 Stat.
985; 22 U.S.C. 2459), E.O. 12047 of
March 27, 1978, the Foreign Affairs
Reform and Restructuring Act of 1998
(112 Stat. 2681, et seq.; 22 U.S.C. 6501
note, et seq.), Delegation of Authority
No. 234 of October 1, 1999, Delegation
of Authority No. 236–3 of August 28,
lotter on DSK11XQN23PROD with NOTICES1
SUPPLEMENTARY INFORMATION:
12 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:56 Sep 14, 2022
Jkt 256001
Notification of Meetings of the United
States-Peru Environmental Affairs
Council, Environmental Cooperation
Commission, and Sub-Committee on
Forest Sector Governance; Withdrawal
ACTION:
Notice; withdrawal.
The Department of State
published a document in the Federal
Register on August 17, 2022, concerning
meetings of the United States-Peru
Environmental Affairs Council,
Environmental Cooperation
Commission, and Sub-Committee on
Forest Sector Governance. The meeting
has been postponed.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Linske, (202) 344–9852 or
Sigrid Simpson, (202) 881–6592.
SUPPLEMENTARY INFORMATION:
Withdrawal.
In the Federal Register of August 17,
2022, we withdraw FR Doc 2022–17652.
The Department of State will submit an
updated meeting notice when the new
meeting date is determined.
SUMMARY:
Sherry Zalika Sykes,
Director, Office of Environmental Quality,
Department of State.
[FR Doc. 2022–19996 Filed 9–14–22; 8:45 am]
BILLING CODE 4710–09–P
DEPARTMENT OF STATE
[Public Notice 11851]
60-Day Notice of Proposed Information
Collection: Request for Commodity
Jurisdiction Determination
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
We are requesting comments on this
collection from all interested
individuals and organizations in
accordance with the Paperwork
Reduction Act of 1995. The purpose of
this notice is to allow 60 days for public
SUMMARY:
PO 00000
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Fmt 4703
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56739
comment preceding submission of this
collection to OMB.
DATES: The Department will accept
comments from the public up to
November 14, 2022.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
internet may comment on this notice by
going to www.Regulations.gov. You can
search for the document by entering the
docket number, DOS–2022–0029, in the
search field. Then, select ‘‘Comment
Now’’ to complete the comment form.
• Email: The public email comments
to DDTCPublicComments@state.gov.
Include ‘‘ATTN: OMB Approval,
Request for Commodity Jurisdiction
Determination’’ in the subject of the
email.
• Mail: The public may mail
comments to the Directorate of Defense
Trade Controls, Department of State,
2401 E St. NW, Suite H1205,
Washington, DC 20522.
You must include the information
collection title (Request for Commodity
Jurisdiction Determination), form
number (DS–4076), and the OMB
control number (1405–0163) in all
correspondence.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents,
to Andrea Battista, who may be reached
at 202–992–0973, or battistaal@
state.gov.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Request for Commodity Jurisdiction
Determination.
• OMB Control Number: 1405–0163.
• Type of Request: Revision of a
currently approved collection.
• Originating Office: Directorate of
Defense Trade Controls (PM/DDTC).
• Form Number: DS–4076.
• Respondents: Any person
requesting a commodity jurisdiction
determination.
• Estimated Number of Responses:
400.
• Average Time per Response: 4
hours.
• Total Estimated Burden Time: 1,600
hours.
• Frequency: On occasion.
• Obligation to Respond: Voluntary.
We are soliciting public comments to
permit the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper functions of the Department.
• Evaluate the accuracy of our
estimate of the time and cost burden for
E:\FR\FM\15SEN1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 178 (Thursday, September 15, 2022)]
[Notices]
[Pages 56737-56739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19917]
[[Page 56737]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95721; File No. SR-BX-2022-016]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Its Port-
Related Fees, at Equity 7, Section 115, and Options 7, Section 3
September 9, 2022.
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 September 1, 2022, Nasdaq BX, Inc. (``BX'' 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
Equity 7, Section 115, and Options 7, Section 3, as described further
below. The text of the proposed rule change is available on the
Exchange's website at https://listingcenter.nasdaq.com/rulebook/bx/rules, at the principal office of the Exchange, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to (i) amend Equity 7,
Section 115, and Options 7, Section 3, to prorate port fees for the
first month of service, (ii) add language to Equity 7, Section 115, and
Options 7, Section 3, to clarify that port fees for cancelled services
will continue to be charged for the remainder of month, and (iii)
clarify that Nasdaq Testing Facility (``NTF'') ports are provided at no
cost in Options 7, Section 3.
Currently, the Exchange does not prorate port connectivity fees
under either its equity or options rules. Thus, participants are
assessed a full month's fee if they direct the Exchange to make the
subscribed connectivity live on any day of the month, including the
last day thereof. Participants are also assessed a full month's port
fee if they cancel service during the month.
The Exchange proposes to provide prorated port fees for the first
month of service for new requests. By prorating the first month's fees,
the Exchange would charge participants port fees only for the days in
which the participants are connected to the Exchange during the first
month of service. The Exchange proposes to continue the current
practice of charging port fees for the remainder of the month upon
cancellation. If a participant starts and cancels service in the same
month, the participant would not be billed for those days prior to the
service start date but would be billed for the remainder of the month,
including after the service is cancelled.\3\
---------------------------------------------------------------------------
\3\ For example, if a participant orders a port on September 4,
2022 and cancels the port on September 16, 2022, the participant
would be charged the prorated port fee for September 5, 2022 through
September 30, 2022.
---------------------------------------------------------------------------
The Exchange believes it is important for participants to have the
option to establish new connections to the Exchange at any time during
the month without being hampered by a full month charge irrespective of
when during the month service begins. Moreover, other exchanges also
charge new ports on a prorated basis for the first month of service.\4\
---------------------------------------------------------------------------
\4\ See, e.g., Cboe BZX U.S. Equities Exchange Fee Schedule,
available at https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/; New York Stock Exchange Price List 2022,
available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf.
---------------------------------------------------------------------------
The Exchange also proposes to add language to Options 7, Section
3(iv) to clarify the Exchange's existing practice that NTF Ports are
provided at no cost. The NTF provides subscribers with a virtual System
test environment that closely approximates the production environment
on which they may test their automated systems that integrate with the
Exchange. For example, the NTF provides subscribers a virtual System
environment for testing upcoming releases and product enhancements, as
well as testing firm software prior to implementation. The Exchange
proposes adding express language in the options Rules to provide
increased clarity to market participants.
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 Sections
6(b)(4) and 6(b)(5) of the Act,\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange's proposed changes to its port fee schedule are
reasonable in several respects. As a threshold matter, the Exchange is
subject to significant competitive forces in the market for options and
equity securities transaction services that constrain its pricing
determinations in that market. The Commission and the courts have
repeatedly expressed their preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. In Regulation NMS, while adopting a series of steps
to improve the current market model, the Commission highlighted the
importance of market forces in determining prices and SRO revenues and,
also, recognized that current regulation of the market system ``has
been remarkably successful in promoting market competition in its
broader forms that are most important to investors and listed
companies.'' \7\
---------------------------------------------------------------------------
\7\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
The Exchange believes that it is reasonable to prorate port fees
for the first month of connectivity. As discussed above, the Exchange
believes it is important for participants to have the flexibility to
establish new connections to the Exchange at any time during the month
without being hampered by a full month charge. For example, the
Exchange believes it is reasonable to charge a user who begins a
subscription on the last day of the month to be charged only for use of
a port for that day. As noted above, other exchanges already charge
their customers for new ports on a prorated basis for the first month
of service.\8\ The
[[Page 56738]]
proposed language describing the Exchange's practice to bill for the
remainder of the month upon cancellation is intended only to clarify
the existing practice and limit any confusion.
---------------------------------------------------------------------------
\8\ Supra note 4.
---------------------------------------------------------------------------
The Exchange believes that the proposal is also equitable and not
unfairly discriminatory because the proposed change to prorate port
fees for the first month of service and continue to charge for the
remainder of the month upon cancellation will apply uniformly to all
similarly situated participants. Removing the requirement to pay a full
month's port fee if a user joins any day other than the first of the
month is user-friendly and provides users incentive to subscribe at
their convenience. The Exchange believes that prorating the fees for
the first month of a user's subscription will ensure that the fees are
more equitable to a user's utilization of the products. All users will
benefit from the proration of the first month of their subscription.
The Exchange also believes that it is just and equitable, and in
the interests of market participants, for the Exchange to clarify the
Exchange's existing practice to provide NTF ports at no cost in Options
7, Section 3(iv), codifying existing practice where it is not expressly
stated in the Rule. The Exchange believes that market participants will
benefit from increased clarity, which will help limit any potential
confusion in the future.
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.
Intramarket Competition
The Exchange does not believe that its proposal will place any
category of Exchange participants at a competitive disadvantage. The
proposed change to prorate port fees for the first month of service
will apply uniformly to all similarly situated participants. All users
will receive the benefit of a proration for the first month of port
connectivity, which will enable users to save money that they otherwise
would incur under the Exchange's current rules that do not provide for
proration. The proposed language describing the Exchange's practice to
bill for the remainder of the month upon cancellation, as well as the
proposed language to the options Rules that NTF ports are provided at
no cost, merely codify and clarify existing practices of the Exchange.
Intermarket Competition
The Exchange believes that the proposed change to its port fee
schedule to provide proration for the first month of port connectivity
will not impose a burden on competition because the Exchange's
execution services are completely voluntary and subject to extensive
competition both from the other live exchanges and from off-exchange
venues, which include alternative trading systems that trade national
market system stock. Moreover, as noted above, other exchanges
currently charge new ports on a prorated basis for the first month of
service.\9\ The proposed changes will help ensure that the Exchange's
billing practices are commensurate with competitors.
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\9\ Supra note 4.
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The proposed change to the Exchange's port fee schedule is
reflective of this competition because, as a threshold issue, the
Exchange is a relatively small market so its ability to burden
intermarket competition is limited. In this regard, even the largest
U.S. equities exchange by volume only has 17-18% market share, which in
most markets could hardly be categorized as having enough market power
to burden competition. Accordingly, the Exchange does not believe that
the proposed change will impair the ability of members, participants,
or competing order execution venues to maintain their competitive
standing in the financial markets.
The proposed change to clarify that NTF ports are provided at no
cost is designed to expressly state existing practice without changing
its operation and, therefore, the Exchange believes that the proposed
change will not impose a burden on competition.
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) of the Act \10\ and paragraph (f) of Rule 19b-4 \11\
thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
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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 [email protected]. Please include
File Number SR-BX-2022-016 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-BX-2022-016. 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 website (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 website 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
[[Page 56739]]
submissions should refer to File Number SR-BX-2022-016 and should be
submitted on or before October 6, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19917 Filed 9-14-22; 8:45 am]
BILLING CODE 8011-01-P
