Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Temporarily Waive Certain Port-Related Fees at Equity 7, Section 115 and Equity 7, Section 130, 64529-64531 [2022-23087]
Download as PDF
<![CDATA[
Federal Register / Vol. 87, No. 205 / Tuesday, October 25, 2022 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
Commission to waive the 30-day
operative delay so that this proposed
rule change may become operative
immediately upon filing.
FINRA has indicated that extending
the relief provided originally in SR–
FINRA–2020–015 and SR–FINRA–
2020–027 will continue to provide
FINRA the ability to safely conduct
hearings in connection with its core
functions during the COVID–19
outbreak. Importantly, extending the
relief provided in these prior rule
changes immediately upon filing and
without a 30-day operative delay will
allow FINRA to continue critical
adjudicatory and review processes in a
reasonable and fair manner and meet its
critical investor protection goals, while
also following best practices with
respect to the health and safety of its
employees.24 The Commission also
notes that this proposal, like SR–
FINRA–2020–015 and SR–FINRA–
2020–027, provides only temporary
relief during the period in which
FINRA’s operations are impacted by
COVID–19. As proposed, the changes
would be in place through January 31,
2023.25 FINRA also noted in both SR–
FINRA–2020–015 and SR–FINRA–
2020–027 that the amended rules will
revert back to their original state at the
conclusion of the temporary relief
period and, if applicable, any extension
thereof.26 For these reasons, the
Commission believes that waiver of the
30-day operative delay for this proposal
is consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.27
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
24 See supra Item II.A.1; see also SR–FINRA–
2020–015, 85 FR 31833.
25 As noted above, see supra note 4, FINRA stated
that if it requires temporary relief from the rule
requirements identified in this proposal beyond
January 31, 2023, it may submit a separate rule
filing to extend the effectiveness of the temporary
relief under these rules.
26 See SR–FINRA–2020–015, 85 FR 31833; see
also SR–FINRA–2020–027, 85 FR 55712.
27 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
VerDate Sep<11>2014
16:52 Oct 24, 2022
Jkt 259001
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:
• 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–
FINRA–2022–029 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–FINRA–2022–029. 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 such
filing also will be available for
inspection and copying at the principal
office of FINRA. 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–FINRA–
2022–029 and should be submitted on
or before November 15, 2022.
Frm 00098
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–23085 Filed 10–24–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96104; File No. SR–
NASDAQ–2022–054]
Electronic Comments
PO 00000
64529
Sfmt 4703
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Temporarily
Waive Certain Port-Related Fees at
Equity 7, Section 115 and Equity 7,
Section 130
October 19, 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 October
11, 2022, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘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 temporarily
waive certain port-related fees at Equity
7, Section 115 and Equity 7, Section
130, as described further below.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/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
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\25OCN1.SGM
25OCN1
64530
Federal Register / Vol. 87, No. 205 / Tuesday, October 25, 2022 / Notices
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 amend Equity 7, Section
115 and Equity 7, Section 130 to
provide a temporary fee waiver for
newly added OUCH order entry ports
(production and Nasdaq Testing Facility
‘‘NTF’’ environments) with the updated
version of the OUCH Order entry
protocol,3 referred to as ‘‘OUCH 5.0.’’
The Exchange has proposed 4 to
introduce this new upgraded version of
the OUCH Order entry protocol that will
enable the Exchange to make functional
enhancements and improvements to
specific Order Types 5 and Order
Attributes.6
Temporary Fee Waiver Pursuant to
Equity 7, Section 115
khammond on DSKJM1Z7X2PROD with NOTICES
First, the Exchange proposes to
amend Equity 7, Section 115 to provide
a 30-day waiver of the OUCH
production port fee for up to five 7
newly added OUCH ports with the
updated version of the OUCH Order
entry protocol, OUCH 5.0. The fee
waiver would be offered for a threemonth period, beginning on the date
when OUCH 5.0 first becomes available
on the Exchange, which such date the
Exchange shall announce in a Equity
Trader Alert. At the end of the threemonth period, users would no longer be
eligible for the waiver. A user may only
receive the 30-day waiver once per port
3 The OUCH Order entry protocol is a proprietary
protocol that allows subscribers to quickly enter
orders into the System and receive executions.
OUCH accepts limit Orders from members, and if
there are matching Orders, they will execute. Nonmatching Orders are added to the Limit Order Book,
a database of available limit Orders, where they are
matched in price-time priority. OUCH only
provides a method for members to send Orders and
receive status updates on those Orders. See https://
www.nasdaqtrader.com/Trader.aspx?id=OUCH.
4 See Securities Exchange Act Release No. 95768
(September 14, 2022), 87 FR 57534 (September 20,
2022).
5 An ‘‘Order Type’’ is a standardized set of
instructions associated with an Order that define
how it will behave with respect to pricing,
execution, and/or posting to the Exchange Book
when submitted to Nasdaq. See Equity 1, Section
1(a)(7).
6 An ‘‘Order Attribute’’ is a further set of variable
instructions that may be associated with an Order
to further define how it will behave with respect to
pricing, execution, and/or posting to the Exchange
Book when submitted to the Exchange. See id.
7 The fee waiver is limited to a maximum of five
OUCH production ports per Web Central
Registration Depository (‘‘CRD’’) membership.
VerDate Sep<11>2014
16:52 Oct 24, 2022
Jkt 259001
(up to a maximum of five ports) within
the three-month window. The Exchange
proposes to offer this temporary waiver
to encourage new, prospective
customers to adopt and returning
customers to migrate to the updated
version of the OUCH Order entry
protocol.
Temporary Fee Waiver Pursuant to
Equity 7, Section 130
Second, the Exchange proposes to
amend Equity 7, Section 130 to provide
a 30-day waiver of the $300 NTF fee in
Section 130(d)(1)(B) for up to five 8
newly added OUCH NTF ports with the
updated version of the OUCH Order
entry protocol, OUCH 5.0. This fee
waiver would also be offered for a threemonth period, beginning on a date
specified by the Exchange in an Equity
Trader Alert. At the end of the threemonth period, users would no longer be
eligible for the waiver. A user may only
receive the 30-day waiver once per port
(up to a maximum of five ports) within
the three-month window. 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 to offer this
temporary waiver to encourage
customers to test the updated version of
the OUCH Order entry protocol free of
charge.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,9 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,10 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 fee schedule are reasonable in several
respects. As a threshold matter, the
Exchange is subject to significant
competitive forces in the market for
equity securities transaction services
that constrain its pricing determinations
8 The fee waiver is limited to a maximum of five
OUCH NTF ports per CRD membership.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
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.’’ 11
The Exchange believes that it is
reasonable to provide temporary fee
waivers for up to five newly added
OUCH order entry ports (production
and Nasdaq Testing Facility ‘‘NTF’’
environments) with the updated version
of the OUCH Order entry protocol,
OUCH 5.0. The Exchange believes it is
important to provide users an
opportunity to test OUCH 5.0 free of
charge. The temporary fee waivers
would encourage users to test and adopt
the enhanced OUCH Order entry
protocol.
The Exchange believes that the
proposed temporary fee waivers are an
equitable allocation of reasonable dues,
fees and other charges and not unfairly
discriminatory because the Exchange
will apply the same temporary fee
waivers to all similarly situated
members. The waivers will reduce fees
for and benefit all users that add OUCH
5.0 order entry ports (production and
NTF environments) within the threemonth window.
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
temporarily waive fees for newly added
OUCH 5.0 order entry ports (production
and NTF environments) will apply
uniformly to all similarly situated
participants. The temporary fee waivers
are available to all users and would
enable users to test the OUCH
enhancements at no cost.
11 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
E:\FR\FM\25OCN1.SGM
25OCN1
Federal Register / Vol. 87, No. 205 / Tuesday, October 25, 2022 / Notices
Intermarket Competition
IV. Solicitation of Comments
The Exchange believes that the
proposed temporary fee waivers 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.
The proposed fee waivers are
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. The
proposed fee waivers would facilitate
adoption of enhancements to the
Exchange’s System and Order entry
protocols, which is pro-competitive
because the enhancements bolster the
efficiency, functionality, and overall
attractiveness of the Exchange in an
absolute sense and relative to its peers.
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.
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:
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.
khammond on DSKJM1Z7X2PROD with NOTICES
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 and Rule
19b–4(f)(2) 13 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
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.
12 15
13 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
16:52 Oct 24, 2022
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–23087 Filed 10–24–22; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
SMALL BUSINESS ADMINISTRATION
• 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–2022–054 on the subject line.
Reporting and Recordkeeping
Requirements Under OMB Review
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–2022–054. 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
submissions should refer to File
Number SR–NASDAQ–2022–054 and
should be submitted on or before
November 15, 2022.
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
Small Business Administration.
30-Day notice.
AGENCY:
ACTION:
The Small Business
Administration (SBA) is seeking
approval from the Office of Management
and Budget (OMB) for the information
collection described below. In
accordance with the Paperwork
Reduction Act and OMB procedures,
SBA is publishing this notice to allow
all interested member of the public an
additional 30 days to provide comments
on the proposed collection of
information.
SUMMARY:
Submit comments on or before
November 25, 2022.
ADDRESSES: Written comments and
recommendations for this information
collection request should be sent within
30 days of publication of this notice to
www.reginfo.gov/public/do/PRAMain.
Find this particular information
collection request by selecting ‘‘Small
Business Administration’’; ‘‘Currently
Under Review,’’ then select the ‘‘Only
Show ICR for Public Comment’’
checkbox. This information collection
can be identified by title and/or OMB
Control Number.
FOR FURTHER INFORMATION CONTACT: You
may obtain a copy of the information
collection and supporting documents
from the Agency Clearance Office at
Curtis.Rich@sba.gov; (202) 205–7030, or
from www.reginfo.gov/public/do/
PRAMain.
DATES:
Small
Business Administration SBA Form 912
is used to collect information needed to
make character determinations with
respect to applicants for monetary loan
assistance or applicants for participation
in SBA programs. The information
collected is used as the basis for
conducting name checks at national
Federal Bureau of Investigations (FBI)
and local levels.
SUPPLEMENTARY INFORMATION:
Solicitation of Public Comments
Comments may be submitted on (a)
whether the collection of information is
14 17
Jkt 259001
64531
E:\FR\FM\25OCN1.SGM
CFR 200.30–3(a)(12).
25OCN1
]]>Agencies
[Federal Register Volume 87, Number 205 (Tuesday, October 25, 2022)]
[Notices]
[Pages 64529-64531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23087]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96104; File No. SR-NASDAQ-2022-054]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Temporarily Waive Certain Port-Related Fees at Equity 7, Section 115
and Equity 7, Section 130
October 19, 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 October 11, 2022, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II, below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to temporarily waive certain port-related
fees at Equity 7, Section 115 and Equity 7, Section 130, as described
further below.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/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
[[Page 64530]]
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 amend Equity 7,
Section 115 and Equity 7, Section 130 to provide a temporary fee waiver
for newly added OUCH order entry ports (production and Nasdaq Testing
Facility ``NTF'' environments) with the updated version of the OUCH
Order entry protocol,\3\ referred to as ``OUCH 5.0.'' The Exchange has
proposed \4\ to introduce this new upgraded version of the OUCH Order
entry protocol that will enable the Exchange to make functional
enhancements and improvements to specific Order Types \5\ and Order
Attributes.\6\
---------------------------------------------------------------------------
\3\ The OUCH Order entry protocol is a proprietary protocol that
allows subscribers to quickly enter orders into the System and
receive executions. OUCH accepts limit Orders from members, and if
there are matching Orders, they will execute. Non-matching Orders
are added to the Limit Order Book, a database of available limit
Orders, where they are matched in price-time priority. OUCH only
provides a method for members to send Orders and receive status
updates on those Orders. See https://www.nasdaqtrader.com/Trader.aspx?id=OUCH.
\4\ See Securities Exchange Act Release No. 95768 (September 14,
2022), 87 FR 57534 (September 20, 2022).
\5\ An ``Order Type'' is a standardized set of instructions
associated with an Order that define how it will behave with respect
to pricing, execution, and/or posting to the Exchange Book when
submitted to Nasdaq. See Equity 1, Section 1(a)(7).
\6\ An ``Order Attribute'' is a further set of variable
instructions that may be associated with an Order to further define
how it will behave with respect to pricing, execution, and/or
posting to the Exchange Book when submitted to the Exchange. See id.
---------------------------------------------------------------------------
Temporary Fee Waiver Pursuant to Equity 7, Section 115
First, the Exchange proposes to amend Equity 7, Section 115 to
provide a 30-day waiver of the OUCH production port fee for up to five
\7\ newly added OUCH ports with the updated version of the OUCH Order
entry protocol, OUCH 5.0. The fee waiver would be offered for a three-
month period, beginning on the date when OUCH 5.0 first becomes
available on the Exchange, which such date the Exchange shall announce
in a Equity Trader Alert. At the end of the three-month period, users
would no longer be eligible for the waiver. A user may only receive the
30-day waiver once per port (up to a maximum of five ports) within the
three-month window. The Exchange proposes to offer this temporary
waiver to encourage new, prospective customers to adopt and returning
customers to migrate to the updated version of the OUCH Order entry
protocol.
---------------------------------------------------------------------------
\7\ The fee waiver is limited to a maximum of five OUCH
production ports per Web Central Registration Depository (``CRD'')
membership.
---------------------------------------------------------------------------
Temporary Fee Waiver Pursuant to Equity 7, Section 130
Second, the Exchange proposes to amend Equity 7, Section 130 to
provide a 30-day waiver of the $300 NTF fee in Section 130(d)(1)(B) for
up to five \8\ newly added OUCH NTF ports with the updated version of
the OUCH Order entry protocol, OUCH 5.0. This fee waiver would also be
offered for a three-month period, beginning on a date specified by the
Exchange in an Equity Trader Alert. At the end of the three-month
period, users would no longer be eligible for the waiver. A user may
only receive the 30-day waiver once per port (up to a maximum of five
ports) within the three-month window. 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 to offer this temporary waiver to
encourage customers to test the updated version of the OUCH Order entry
protocol free of charge.
---------------------------------------------------------------------------
\8\ The fee waiver is limited to a maximum of five OUCH NTF
ports per CRD membership.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange's proposed changes to its fee schedule are reasonable
in several respects. As a threshold matter, the Exchange is subject to
significant competitive forces in the market for 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.'' \11\
---------------------------------------------------------------------------
\11\ 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 provide temporary
fee waivers for up to five newly added OUCH order entry ports
(production and Nasdaq Testing Facility ``NTF'' environments) with the
updated version of the OUCH Order entry protocol, OUCH 5.0. The
Exchange believes it is important to provide users an opportunity to
test OUCH 5.0 free of charge. The temporary fee waivers would encourage
users to test and adopt the enhanced OUCH Order entry protocol.
The Exchange believes that the proposed temporary fee waivers are
an equitable allocation of reasonable dues, fees and other charges and
not unfairly discriminatory because the Exchange will apply the same
temporary fee waivers to all similarly situated members. The waivers
will reduce fees for and benefit all users that add OUCH 5.0 order
entry ports (production and NTF environments) within the three-month
window.
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 temporarily waive fees for newly added OUCH 5.0
order entry ports (production and NTF environments) will apply
uniformly to all similarly situated participants. The temporary fee
waivers are available to all users and would enable users to test the
OUCH enhancements at no cost.
[[Page 64531]]
Intermarket Competition
The Exchange believes that the proposed temporary fee waivers 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.
The proposed fee waivers are 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. The proposed fee
waivers would facilitate adoption of enhancements to the Exchange's
System and Order entry protocols, which is pro-competitive because the
enhancements bolster the efficiency, functionality, and overall
attractiveness of the Exchange in an absolute sense and relative to its
peers. 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.
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\ and Rule 19b-4(f)(2) \13\ thereunder.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-NASDAQ-2022-054 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-2022-054. 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 submissions
should refer to File Number SR-NASDAQ-2022-054 and should be submitted
on or before November 15, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-23087 Filed 10-24-22; 8:45 am]
BILLING CODE 8011-01-P
