Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Schedule of Fees at Equity 7 Sections 114 and 118, 1134-1135 [2024-00179]
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1134
Federal Register / Vol. 89, No. 6 / Tuesday, January 9, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00178 Filed 1–8–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99269; File No. SR–
NASDAQ–2023–056]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Schedule of Fees at Equity
7 Sections 114 and 118
January 3, 2024.
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 December
21, 2023, 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, 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 schedule of fees at Equity 7,
Sections 114 and 118.
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.
khammond on DSKJM1Z7X2PROD with NOTICES
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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
16:38 Jan 08, 2024
Jkt 262001
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
On December 13, 2023, Nasdaq
experienced a technical issue with its
RASH order handling system. The issue
involved a duplication of an internal
order identification numbers, which
impacted a subset of orders for some
members, including unacknowledged
orders, an inability to cancel open
orders, intermittent port disconnects,
missing execution reports, and
mismatched execution reports.
Because Nasdaq’s fee and rebate
schedule in Equity 7, Sections 114 and
118 provide that members may achieve
better pricing if they achieve certain
specified volumes of activity during a
given month (as measured by
Consolidated Volume (defined below)
and Average Daily Volume (‘‘ADV’’)),
the RASH issue may have impacted the
ability of affected members to reach the
required volumes. By way of
illustration, a member with shares of
liquidity provided in all securities
through one of its Nasdaq Market Center
market participant identifiers (‘‘MPIDs’’)
that represent more than 1.50% of the
total consolidated volume reported to
all consolidated transaction reporting
plans by all exchanges and trade
reporting facilities in equity securities of
at least one round lot (‘‘Consolidated
Volume’’) during a month receives a
rebate of $0.00305 per share executed
with respect to liquidity that it provides
during the month through displayed
quotes/orders. By contrast, members
providing lower volumes of liquidity
receive lower rebates with respect to
displayed quotes/order ranging from
$0.0020 to $0.0030 per share executed.
If a member had provided liquidity that
represented slightly in excess of 1.50%
of Consolidated Volume on each day of
December 2023 other than December 13,
but was prevented from reaching
comparable levels on that date due to
the RASH issue, it is possible that the
rebate it would ultimately earn for the
entire month would be lower than
would otherwise have been the case.
Similarly, under Equity 7, Section 114,
a member may be entitled to receive an
enhanced rebate under Nasdaq’s
Qualified Market Maker Program,
Designated Liquidity Provider Program,
or its NBBO Program, based on its
achievement of certain Consolidated
Volume or ADV criteria specified in the
rule. The ability of a member to achieve
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
these criteria may have also been
affected by the RASH issue.
Accordingly, in order to ensure that
fees and rebates are not adversely
impacted by the RASH issue, Nasdaq
proposes to exclude December 13, 2023
from calculations of Consolidated
Volume and ADV made under Equity 7,
Sections 114 and 118 if doing so would
allow a member to achieve more
favorable pricing than would be the case
if the day were included. Thus,
members that are unaffected by the
RASH issue would not have the day
arbitrarily excluded from their
calculations. Nasdaq will perform all
calculations needed to implement the
change.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,3 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,4 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.
Nasdaq believes that the proposed
change is reasonable because it will
allow members to receive December
2023 pricing that is based on either the
exclusion, or the inclusion, of December
13, whichever is more favorable to the
member. The proposed change is
equitable and not unfairly
discriminatory, because it will ensure
that the fees and rebates applicable to
members that were subject to the RASH
issue are not adversely affected by the
issue.
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. The change
will help to ensure that members that
were affected by the RASH issue are not
required to pay higher fees, or receive
lower rebates, during December 2023
than would otherwise be the case.
Accordingly, Nasdaq believes that the
proposed changes will protect members
from incurring unanticipated charges.
3 15
4 15
E:\FR\FM\09JAN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
09JAN1
Federal Register / Vol. 89, No. 6 / Tuesday, January 9, 2024 / 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.5
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:
khammond on DSKJM1Z7X2PROD with NOTICES
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–2023–056 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–2023–056. 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–2023–056 and should be
submitted on or before January 30, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00179 Filed 1–8–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99270; File No. SR–BX–
2023–034]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Exchange’s Schedule of Fees at Equity
7, Section 118
January 3, 2024.
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 December
21, 2023, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘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 schedule of fees at Equity 7,
Section 118.
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
5 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Sep<11>2014
16:38 Jan 08, 2024
Jkt 262001
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
1135
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
On December 13, 2023, BX
experienced a technical issue with its
RASH order handling system. The issue
involved a duplication of an internal
order identification numbers, which
impacted a subset of orders for some
members, including unacknowledged
orders, an inability to cancel open
orders, intermittent port disconnects,
missing execution reports, and
mismatched execution reports.
Because BX’s fee and rebate schedule
in Equity 7, Section 118 provide that
members may achieve better pricing if
they achieve certain specified volumes
of activity during a given month (as
measured by Consolidated Volume
(defined below) and Average Daily
Volume (‘‘ADV’’)), the RASH issue may
have impacted the ability of affected
members to reach the required volumes.
By way of illustration, a member with
shares of liquidity provided in all
securities through one of its market
participant identifiers (‘‘MPIDs’’) that
represent more than 0.50% [sic] of the
total consolidated volume reported to
all consolidated transaction reporting
plans by all exchanges and trade
reporting facilities in equity securities of
at least one round lot (‘‘Consolidated
Volume’’) during a month is charged a
fee of $0.0020 per share executed with
respect to liquidity that it provides
during the month through displayed
orders. By contrast, members providing
lower volumes of liquidity pay a higher
fee of $0.0030 per share executed. If a
member had provided liquidity that
E:\FR\FM\09JAN1.SGM
09JAN1
]]>Agencies
[Federal Register Volume 89, Number 6 (Tuesday, January 9, 2024)]
[Notices]
[Pages 1134-1135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00179]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99269; File No. SR-NASDAQ-2023-056]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange's Schedule of Fees at Equity 7 Sections 114 and 118
January 3, 2024.
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 December 21, 2023, 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, 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 schedule of fees at
Equity 7, Sections 114 and 118.
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 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
On December 13, 2023, Nasdaq experienced a technical issue with its
RASH order handling system. The issue involved a duplication of an
internal order identification numbers, which impacted a subset of
orders for some members, including unacknowledged orders, an inability
to cancel open orders, intermittent port disconnects, missing execution
reports, and mismatched execution reports.
Because Nasdaq's fee and rebate schedule in Equity 7, Sections 114
and 118 provide that members may achieve better pricing if they achieve
certain specified volumes of activity during a given month (as measured
by Consolidated Volume (defined below) and Average Daily Volume
(``ADV'')), the RASH issue may have impacted the ability of affected
members to reach the required volumes. By way of illustration, a member
with shares of liquidity provided in all securities through one of its
Nasdaq Market Center market participant identifiers (``MPIDs'') that
represent more than 1.50% of the total consolidated volume reported to
all consolidated transaction reporting plans by all exchanges and trade
reporting facilities in equity securities of at least one round lot
(``Consolidated Volume'') during a month receives a rebate of $0.00305
per share executed with respect to liquidity that it provides during
the month through displayed quotes/orders. By contrast, members
providing lower volumes of liquidity receive lower rebates with respect
to displayed quotes/order ranging from $0.0020 to $0.0030 per share
executed. If a member had provided liquidity that represented slightly
in excess of 1.50% of Consolidated Volume on each day of December 2023
other than December 13, but was prevented from reaching comparable
levels on that date due to the RASH issue, it is possible that the
rebate it would ultimately earn for the entire month would be lower
than would otherwise have been the case. Similarly, under Equity 7,
Section 114, a member may be entitled to receive an enhanced rebate
under Nasdaq's Qualified Market Maker Program, Designated Liquidity
Provider Program, or its NBBO Program, based on its achievement of
certain Consolidated Volume or ADV criteria specified in the rule. The
ability of a member to achieve these criteria may have also been
affected by the RASH issue.
Accordingly, in order to ensure that fees and rebates are not
adversely impacted by the RASH issue, Nasdaq proposes to exclude
December 13, 2023 from calculations of Consolidated Volume and ADV made
under Equity 7, Sections 114 and 118 if doing so would allow a member
to achieve more favorable pricing than would be the case if the day
were included. Thus, members that are unaffected by the RASH issue
would not have the day arbitrarily excluded from their calculations.
Nasdaq will perform all calculations needed to implement the change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\3\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\4\ 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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
Nasdaq believes that the proposed change is reasonable because it
will allow members to receive December 2023 pricing that is based on
either the exclusion, or the inclusion, of December 13, whichever is
more favorable to the member. The proposed change is equitable and not
unfairly discriminatory, because it will ensure that the fees and
rebates applicable to members that were subject to the RASH issue are
not adversely affected by the issue.
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. The change will help to ensure
that members that were affected by the RASH issue are not required to
pay higher fees, or receive lower rebates, during December 2023 than
would otherwise be the case. Accordingly, Nasdaq believes that the
proposed changes will protect members from incurring unanticipated
charges.
[[Page 1135]]
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.\5\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NASDAQ-2023-056 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-2023-056. 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-2023-056 and should
be submitted on or before January 30, 2024.
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00179 Filed 1-8-24; 8:45 am]
BILLING CODE 8011-01-P
