Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its GPS Antenna Fees at General 8, Section 1, 72204-72207 [2023-23043]
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Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / 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
The foregoing rule change has become
effective pursuant to section
19(b)(3)(A)(ii) of the Act.17
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:
lotter on DSK11XQN23PROD with NOTICES1
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–2023–039 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–2023–039. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NASDAQ–2023–039 and should be
submitted on or before November 9,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–23039 Filed 10–18–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–146, OMB Control No.
3235–0134]
Submission for OMB Review;
Comment Request; Extension: Rule
15c1–7
Upon Written Request, Copies Available
From: U.S. Securities and Exchange
Commission, Office of FOIA
Services, Washington, DC 20549–
2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the existing collection of
information provided for in Rule 15c1–
7 (17 CFR 240.15c1–7) under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 15c1–7 states that any act of a
broker-dealer designed to effect
securities transactions with or for a
customer account over which the
broker-dealer (directly or through an
agent or employee) has discretion will
be considered a fraudulent,
manipulative, or deceptive practice
under the federal securities laws, unless
a record is made of the transaction
immediately by the broker-dealer. The
record must include (a) the name of the
customer, (b) the name, amount, and
price of the security, and (c) the date
and time when such transaction took
place. The Commission estimates that
350 respondents collect information
related to approximately 400,000
transactions annually under Rule 15c1–
7 and that each respondent would
spend approximately 5 minutes on the
collection of information for each
transaction, for a total time burden of
approximately 33,333 hours per year
(approximately 95.2 hours per
respondent).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent by
November 20, 2023 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov.
Dated: October 16, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–23096 Filed 10–18–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98745; File No. SR–BX–
2023–025]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its GPS
Antenna Fees at General 8, Section 1
October 13, 2023.
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 29, 2023, Nasdaq BX, Inc.
1 15
17 15
U.S.C. 78s(b)(3)(A)(ii).
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18 17
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CFR 200.30–3(a)(12).
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2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Notices
(‘‘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 GPS antenna fees at General
8, Section 1, as described further below.
While these amendments are effective
upon filing, the Exchange has
designated the proposed amendments to
be operative on October 1, 2023.
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
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1. Purpose
The Exchange offers a GPS antenna,
which allows customers to synchronize
their time recording systems to the U.S.
Government’s Global Positioning
System (‘‘GPS’’) network time (the
‘‘Service’’). The Exchange proposes to
modify its monthly fees for the Service
at General 8, Section 1(d).
GPS network time is the atomic time
scale implemented by the atomic clocks
in the GPS ground control stations and
GPS satellites. Each GPS satellite
contains multiple atomic clocks that
contribute precise time data to the GPS
signals. GPS receivers decode these
signals, synchronizing the receivers to
the atomic clocks. A GPS antenna serves
as a time signal receiver and feeds a
primary clock device the GPS network
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time using precise time data. Firms can
use the precise time data provided by
the GPS antenna to time-stamp
transactional information.
Time synchronization services are
well established in the U.S. and utilized
in many areas of the U.S. economy and
infrastructure. The Service is not novel
to the securities markets, or to the
Exchange.
The Exchange offers connectivity to a
GPS antenna via two options, over
shared infrastructure or a dedicated
antenna. If a firm wishes to connect via
a dedicated connection, it must supply
the antenna hardware.
The Exchange currently charges a
monthly fee of $200 for the Service. The
Exchange proposes to increase the
monthly fee to $600 for the Service. As
such, the Exchange proposes to amend
its fee schedule at General 8, Section
1(d) to reflect the increased monthly fee
for the GPS antenna. The Exchange has
not raised such price since the monthly
fee of $200 was adopted in 2010.3 In
addition, the Exchange charges a higher
monthly fee of $350 for crossconnections to approved
telecommunication carriers in the
datacenter and for inter-cabinet
connections to other customers in the
datacenter, despite the fact that the
Service not only provides connectivity
(like the cross-connections), but also
provides data (i.e., the network time) to
customers.
In addition, the Exchange’s fee
schedule at General 8, Section 1(d)
currently states that the installation fee
for the GPS antenna is installation
specific. The Exchange proposes to add
specific installation amounts for the
Service within the fee schedule,
providing greater transparency to
market participants. Specifically, the
Exchange proposes to charge an
installation fee of $900 for connectivity
to a GPS antenna over shared
infrastructure and $1,500 for
connectivity to a GPS antenna over a
dedicated antenna.4 The difference in
installation costs reflects the differing
levels of complexity. For the dedicated
antenna option, installation involves
installing an antenna on the roof
whereas the shared option involves
extending a cable from a device located
inside the data center.
The Service is an optional product
available to any firm that chooses to
subscribe. Firms may cancel their
subscription at any time. The Service
simply provides time synchronization
that may be utilized by firms to adjust
their own time systems and time-stamp
transactional information. The GPS
antenna is offered on a completely
voluntary basis. No customer is required
to purchase the GPS antenna. Potential
subscribers may subscribe to the Service
only if they voluntarily choose to do so.
It is a business decision of each firm
whether to subscribe to the Service or
not. Furthermore, firms have an array of
options for time synchronization. Firms
may purchase the Service (or enhanced
time synchronization services) from
other vendors.5
If the Exchange is incorrect in its
determination that the proposed fees
reflect the value of the GPS antenna,
customers will not purchase the product
or will seek other options at their
disposal.
3 See Securities Exchange Act Release No. 62396
(June 28, 2010), 75 FR 38585 (July 2, 2010) (SR–BX–
2010–012).
4 NYSE provides a similar service for a $3,000
initial charge plus a $400 monthly charge. See
https://www.nyse.com/publicdocs/Wireless_
Connectivity_Fees_and_Charges.pdf.
5 For example, Pico, Guava Tech, and SFTI
provide GPS time synchronization services.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4) and (5).
8 See NetCoalition, 615 F.3d at 539 (D.C. Cir.
2010) (quoting Securities Exchange Act Release No.
PO 00000
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2. Statutory Basis
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act,6 in general, and furthers the
objectives of sections 6(b)(4) and 6(b)(5)
of the Act,7 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 proposed change to the pricing
schedule is reasonable in several
respects. As a threshold matter, the
Exchange is subject to significant
competitive forces in the market for
order flow, which constrains its pricing
determinations. The fact that the market
for order flow is competitive has long
been recognized by the courts. In
NetCoalition v. Securities and Exchange
Commission, the D.C. Circuit stated,
‘‘[n]o one disputes that competition for
order flow is ‘fierce.’ . . . As the SEC
explained, ‘[i]n the U.S. national market
system, buyers and sellers of securities,
and the broker-dealers that act as their
order-routing agents, have a wide range
of choices of where to route orders for
execution’; [and] ‘no exchange can
afford to take its market share
percentages for granted’ because ‘no
exchange possesses a monopoly,
regulatory or otherwise, in the execution
of order flow from broker
dealers’. . . .’’ 8
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Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Notices
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The Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention to determine 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.’’ 9
Congress directed the Commission to
‘‘rely on ‘competition, whenever
possible, in meeting its regulatory
responsibilities for overseeing the SROs
and the national market system.’ ’’ 10 As
a result, the Commission has
historically relied on competitive forces
to determine whether a fee proposal is
equitable, fair, reasonable, and not
unreasonably or unfairly discriminatory.
‘‘If competitive forces are operative, the
self-interest of the exchanges themselves
will work powerfully to constrain
unreasonable or unfair behavior.’’ 11
Accordingly, ‘‘the existence of
significant competition provides a
substantial basis for finding that the
terms of an exchange’s fee proposal are
equitable, fair, reasonable, and not
unreasonably or unfairly
discriminatory.’’ 12 In its 2019 guidance
on fee proposals, Commission staff
indicated that they would look at factors
beyond the competitive environment,
such as cost, only if a ‘‘proposal lacks
persuasive evidence that the proposed
fee is constrained by significant
competitive forces.’’ 13
The proposed fees are reasonable and
unlikely to burden the market because
the purchase of the Service is optional
for all categories of customers. No firms
are required to purchase the Service.
Though many firms use GPS network
time to synchronize their internal
primary clock devices, firms can
59039 (December 2, 2008), 73 FR 74770, 74782–83
(December 9, 2008) (SR–NYSEArca–2006–21)).
9 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
10 See NetCoalition, 615 F.3d at 534–35; see also
H.R. Rep. No. 94–229 at 92 (1975) (‘‘[I]t is the intent
of the conferees that the national market system
evolve through the interplay of competitive forces
as unnecessary regulatory restrictions are
removed.’’).
11 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (SR–NYSEArca–2006–21).
12 Id.
13 See U.S. Securities and Exchange Commission,
‘‘Staff Guidance on SRO Rule filings Relating to
Fees’’ (May 21, 2019), available at https://
www.sec.gov/tm/staff-guidance-sro-rule-filings-fees.
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17:48 Oct 18, 2023
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purchase time sync services from thirdparty vendors.14 Firms are also free to
utilize other services that may assist
them in enhanced time synchronization
of their systems. Firms may choose to
purchase multiple time synchronization
services for resiliency or otherwise.15 In
addition to cost, a firm’s decision
regarding which, if any, time
synchronization option to purchase may
depend, among other factors, on the
design of the firm’s systems and
whether they use such time information
to trigger trading decisions. The
Exchange offers the Service as a
convenience to firms to provide them
with the ability to synchronize their
own primary clock devices to the GPS
network time and time-stamp
transactional information.16 Firms that
choose to subscribe to the Service may
discontinue the use of the Service at any
time if they determine that the time
synchronization services provided via
the GPS antenna are no longer useful. In
sum, customers can discontinue the use
of the Service at any time, decide not to
subscribe, or use a third-party vendor
for time synchronization services, for
any reason, including the fees.
The optional Service is available to all
customers that choose to subscribe. The
proposed fees would apply to all
customers on a non-discriminatory
basis, and therefore are not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange also believes that the
proposed changes to include specific
installation fees promote just and
equitable principles of trade and remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because
the proposed rule changes will provide
greater clarity to Members and the
public regarding the Exchange’s fees. It
is in the public interest for rules to be
accurate and transparent so as to
eliminate the potential for confusion.
If the Exchange is incorrect in its
determination that the proposed fees
reflect the value of the GPS antenna,
customers will not purchase the product
or will seek other options at their
disposal.
14 Approximately 59% of the Exchange’s colocation customers subscribe to the Service, most of
which opt for the shared option.
15 Of the Exchange’s customers that subscribe to
the Service, approximately 9% of such customers
purchase both the dedicated and the shared options
of the Service.
16 In offering the Service as a convenience to
firms, the Exchange incurs certain costs, including
costs related to the data center facility, hardware
and equipment, and personnel.
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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 competition among self-regulatory
organizations), 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. 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, the Exchange believes
that the degree to which fee changes in
this market may impose any burden on
competition is extremely limited.
Approval of the proposal does not
impose any burden on the ability of
other exchanges to compete. As noted
above, time synchronization services are
offered by other vendors and any
exchange has the ability to offer such
services if it so chooses.
Nothing in the proposal burdens
intra-market competition (the
competition among consumers of
exchange data) because the GPS antenna
is available to any customer under the
same fees as any other customer, and
any market participant that wishes to
purchase a GPS antenna can do so on
a non-discriminatory basis.
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.17
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
17 15
E:\FR\FM\19OCN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
19OCN1
Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Notices
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:
lotter on DSK11XQN23PROD with NOTICES1
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–2023–025 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–2023–025. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–BX–2023–025 and should be
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17:48 Oct 18, 2023
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submitted on or before November 9,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–23043 Filed 10–18–23; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #18244 and #18245;
MONTANA Disaster Number MT–00174]
Presidential Declaration of a Major
Disaster for Public Assistance Only for
the State of Montana
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
72207
Percent
For Physical Damage:
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Non-Profit Organizations without Credit Available Elsewhere .....................................
2.375
2.375
2.375
The number assigned to this disaster
for physical damage is 18244 6 and for
economic injury is 18245 0.
(Catalog of Federal Domestic Assistance
Number 59008)
Francisco Sa´nchez, Jr.,
Associate Administrator, Office of Disaster
Recovery & Resilience.
[FR Doc. 2023–23060 Filed 10–18–23; 8:45 am]
BILLING CODE 8026–09–P
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Montana (FEMA–4745–DR),
dated 10/11/2023.
Incident: Flooding.
Incident Period: 06/01/2023 through
06/08/2023.
DATES: Issued on 10/11/2023.
Physical Loan Application Deadline
Date: 12/11/2023.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/11/2024.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT:
Alan Escobar, Office of Disaster
Recovery & Resilience, U.S. Small
Business Administration, 409 3rd Street
SW, Suite 6050, Washington, DC 20416,
(202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
10/11/2023, Private Non-Profit
organizations that provide essential
services of a governmental nature may
file disaster loan applications at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties:
Carbon, Daniels, Fergus, Garfield,
Golden Valley, Musselshell,
Petroleum, Phillips, Stillwater,
Treasure.
SUMMARY:
The Interest Rates are:
18 17
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CFR 200.30–3(a)(12).
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SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #18061 and #18062;
HAWAII Disaster Number HI–00073]
Presidential Declaration Amendment of
a Major Disaster for the State of Hawaii
U.S. Small Business
Administration.
ACTION: Amendment 3.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of Hawaii (FEMA–
4724–DR), dated 08/10/2023.
Incident: Wildfires, including High
Winds.
Incident Period: 08/08/2023 and
continuing.
SUMMARY:
Issued on 10/11/2023.
Physical Loan Application Deadline
Date: 11/09/2023.
Economic Injury (EIDL) Loan
Application Deadline Date: 05/10/2024.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT:
Alan Escobar, Office of Disaster
Recovery & Resilience, U.S. Small
Business Administration, 409 3rd Street
SW, Suite 6050, Washington, DC 20416,
(202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of Hawaii,
dated 08/10/2023, is hereby amended to
expand the incident for this disaster to
include high winds.
All other information in the original
declaration remains unchanged.
DATES:
E:\FR\FM\19OCN1.SGM
19OCN1
]]>Agencies
[Federal Register Volume 88, Number 201 (Thursday, October 19, 2023)]
[Notices]
[Pages 72204-72207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23043]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98745; File No. SR-BX-2023-025]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Its GPS
Antenna Fees at General 8, Section 1
October 13, 2023.
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 29, 2023, Nasdaq BX, Inc.
[[Page 72205]]
(``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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's GPS antenna fees at
General 8, Section 1, as described further below.
While these amendments are effective upon filing, the Exchange has
designated the proposed amendments to be operative on October 1, 2023.
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 Exchange offers a GPS antenna, which allows customers to
synchronize their time recording systems to the U.S. Government's
Global Positioning System (``GPS'') network time (the ``Service''). The
Exchange proposes to modify its monthly fees for the Service at General
8, Section 1(d).
GPS network time is the atomic time scale implemented by the atomic
clocks in the GPS ground control stations and GPS satellites. Each GPS
satellite contains multiple atomic clocks that contribute precise time
data to the GPS signals. GPS receivers decode these signals,
synchronizing the receivers to the atomic clocks. A GPS antenna serves
as a time signal receiver and feeds a primary clock device the GPS
network time using precise time data. Firms can use the precise time
data provided by the GPS antenna to time-stamp transactional
information.
Time synchronization services are well established in the U.S. and
utilized in many areas of the U.S. economy and infrastructure. The
Service is not novel to the securities markets, or to the Exchange.
The Exchange offers connectivity to a GPS antenna via two options,
over shared infrastructure or a dedicated antenna. If a firm wishes to
connect via a dedicated connection, it must supply the antenna
hardware.
The Exchange currently charges a monthly fee of $200 for the
Service. The Exchange proposes to increase the monthly fee to $600 for
the Service. As such, the Exchange proposes to amend its fee schedule
at General 8, Section 1(d) to reflect the increased monthly fee for the
GPS antenna. The Exchange has not raised such price since the monthly
fee of $200 was adopted in 2010.\3\ In addition, the Exchange charges a
higher monthly fee of $350 for cross-connections to approved
telecommunication carriers in the datacenter and for inter-cabinet
connections to other customers in the datacenter, despite the fact that
the Service not only provides connectivity (like the cross-
connections), but also provides data (i.e., the network time) to
customers.
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\3\ See Securities Exchange Act Release No. 62396 (June 28,
2010), 75 FR 38585 (July 2, 2010) (SR-BX-2010-012).
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In addition, the Exchange's fee schedule at General 8, Section 1(d)
currently states that the installation fee for the GPS antenna is
installation specific. The Exchange proposes to add specific
installation amounts for the Service within the fee schedule, providing
greater transparency to market participants. Specifically, the Exchange
proposes to charge an installation fee of $900 for connectivity to a
GPS antenna over shared infrastructure and $1,500 for connectivity to a
GPS antenna over a dedicated antenna.\4\ The difference in installation
costs reflects the differing levels of complexity. For the dedicated
antenna option, installation involves installing an antenna on the roof
whereas the shared option involves extending a cable from a device
located inside the data center.
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\4\ NYSE provides a similar service for a $3,000 initial charge
plus a $400 monthly charge. See https://www.nyse.com/publicdocs/Wireless_Connectivity_Fees_and_Charges.pdf.
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The Service is an optional product available to any firm that
chooses to subscribe. Firms may cancel their subscription at any time.
The Service simply provides time synchronization that may be utilized
by firms to adjust their own time systems and time-stamp transactional
information. The GPS antenna is offered on a completely voluntary
basis. No customer is required to purchase the GPS antenna. Potential
subscribers may subscribe to the Service only if they voluntarily
choose to do so. It is a business decision of each firm whether to
subscribe to the Service or not. Furthermore, firms have an array of
options for time synchronization. Firms may purchase the Service (or
enhanced time synchronization services) from other vendors.\5\
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\5\ For example, Pico, Guava Tech, and SFTI provide GPS time
synchronization services.
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If the Exchange is incorrect in its determination that the proposed
fees reflect the value of the GPS antenna, customers will not purchase
the product or will seek other options at their disposal.
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act,\6\ in general, and furthers the objectives of sections
6(b)(4) and 6(b)(5) of the Act,\7\ 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.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
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The proposed change to the pricing schedule is reasonable in
several respects. As a threshold matter, the Exchange is subject to
significant competitive forces in the market for order flow, which
constrains its pricing determinations. The fact that the market for
order flow is competitive has long been recognized by the courts. In
NetCoalition v. Securities and Exchange Commission, the D.C. Circuit
stated, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \8\
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\8\ See NetCoalition, 615 F.3d at 539 (D.C. Cir. 2010) (quoting
Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR
74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)).
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[[Page 72206]]
The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention to determine
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.'' \9\
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\9\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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Congress directed the Commission to ``rely on `competition,
whenever possible, in meeting its regulatory responsibilities for
overseeing the SROs and the national market system.' '' \10\ As a
result, the Commission has historically relied on competitive forces to
determine whether a fee proposal is equitable, fair, reasonable, and
not unreasonably or unfairly discriminatory. ``If competitive forces
are operative, the self-interest of the exchanges themselves will work
powerfully to constrain unreasonable or unfair behavior.'' \11\
Accordingly, ``the existence of significant competition provides a
substantial basis for finding that the terms of an exchange's fee
proposal are equitable, fair, reasonable, and not unreasonably or
unfairly discriminatory.'' \12\ In its 2019 guidance on fee proposals,
Commission staff indicated that they would look at factors beyond the
competitive environment, such as cost, only if a ``proposal lacks
persuasive evidence that the proposed fee is constrained by significant
competitive forces.'' \13\
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\10\ See NetCoalition, 615 F.3d at 534-35; see also H.R. Rep.
No. 94-229 at 92 (1975) (``[I]t is the intent of the conferees that
the national market system evolve through the interplay of
competitive forces as unnecessary regulatory restrictions are
removed.'').
\11\ See Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (SR-NYSEArca-2006-21).
\12\ Id.
\13\ See U.S. Securities and Exchange Commission, ``Staff
Guidance on SRO Rule filings Relating to Fees'' (May 21, 2019),
available at https://www.sec.gov/tm/staff-guidance-sro-rule-filings-fees.
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The proposed fees are reasonable and unlikely to burden the market
because the purchase of the Service is optional for all categories of
customers. No firms are required to purchase the Service. Though many
firms use GPS network time to synchronize their internal primary clock
devices, firms can purchase time sync services from third-party
vendors.\14\ Firms are also free to utilize other services that may
assist them in enhanced time synchronization of their systems. Firms
may choose to purchase multiple time synchronization services for
resiliency or otherwise.\15\ In addition to cost, a firm's decision
regarding which, if any, time synchronization option to purchase may
depend, among other factors, on the design of the firm's systems and
whether they use such time information to trigger trading decisions.
The Exchange offers the Service as a convenience to firms to provide
them with the ability to synchronize their own primary clock devices to
the GPS network time and time-stamp transactional information.\16\
Firms that choose to subscribe to the Service may discontinue the use
of the Service at any time if they determine that the time
synchronization services provided via the GPS antenna are no longer
useful. In sum, customers can discontinue the use of the Service at any
time, decide not to subscribe, or use a third-party vendor for time
synchronization services, for any reason, including the fees.
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\14\ Approximately 59% of the Exchange's co-location customers
subscribe to the Service, most of which opt for the shared option.
\15\ Of the Exchange's customers that subscribe to the Service,
approximately 9% of such customers purchase both the dedicated and
the shared options of the Service.
\16\ In offering the Service as a convenience to firms, the
Exchange incurs certain costs, including costs related to the data
center facility, hardware and equipment, and personnel.
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The optional Service is available to all customers that choose to
subscribe. The proposed fees would apply to all customers on a non-
discriminatory basis, and therefore are not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
The Exchange also believes that the proposed changes to include
specific installation fees promote just and equitable principles of
trade and remove impediments to and perfect the mechanism of a free and
open market and a national market system because the proposed rule
changes will provide greater clarity to Members and the public
regarding the Exchange's fees. It is in the public interest for rules
to be accurate and transparent so as to eliminate the potential for
confusion.
If the Exchange is incorrect in its determination that the proposed
fees reflect the value of the GPS antenna, customers will not purchase
the product or will seek other options at their disposal.
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 competition among self-
regulatory organizations), 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. 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, the Exchange
believes that the degree to which fee changes in this market may impose
any burden on competition is extremely limited. Approval of the
proposal does not impose any burden on the ability of other exchanges
to compete. As noted above, time synchronization services are offered
by other vendors and any exchange has the ability to offer such
services if it so chooses.
Nothing in the proposal burdens intra-market competition (the
competition among consumers of exchange data) because the GPS antenna
is available to any customer under the same fees as any other customer,
and any market participant that wishes to purchase a GPS antenna can do
so on a non-discriminatory basis.
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.\17\
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\17\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in
[[Page 72207]]
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-2023-025 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-2023-025. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-BX-2023-025 and should be
submitted on or before November 9, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-23043 Filed 10-18-23; 8:45 am]
BILLING CODE 8011-01-P
