1134 Federal Register / Vol. 89, No. 6 / Tuesday, January 9, 2024 / Notices 

15 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(4) and (5). 

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. 

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. 

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. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 6 / Tuesday, January 9, 2024 / Notices 1135 

5 15 U.S.C. 78s(b)(3)(A)(ii). 

6 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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: 

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. 

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 


khammond on DSKJM1Z7X2PROD with NOTICES