Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93731 

125See supra note 12. 

126 In the first quarter of 2020, FINRA saw an 

increase in alerts generated through its market 

surveillance of over 250% compared to the same 

quarter in 2019. 

127 15 U.S.C. 78s(b)(3)(A). 

128 17 CFR 240.19b–4(f)(2). 

129 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

be a positive externality to those 

competitors. That is, increased 

confidence by retail investors due to 

FINRA’s activities may increase 

business opportunities and lower 

transaction costs in the securities 

industry as a whole. This would benefit 

non-FINRA member competitors, 

especially in instances where investors 

do not recognize these competitors are 

not regulated by FINRA. 

Alternatives Considered 

In developing this proposal, FINRA 

considered several options. First, FINRA 

considered making all the fee changes 

effective in 2025. FINRA did not pursue 

this alternative because it believed that, 

where possible, members should be 

provided an extended time period to 

plan for the proposed fee increase. In 

light of uncertainty and volatility in the 

markets, FINRA believes that 

implementing the proposed fee increase 

at one time would impose a greater 

burden on members than phasing in the 

implementation of the fee increases, as 

proposed. 

FINRA also considered making all of 

the fee changes effective in 2026, but 

decided against that approach for many 

of the same reasons noted above. 

However, FINRA believes that deferring 

implementation of all fees in this 

proposed rule change is unnecessary 

and would hinder FINRA’s ability to 

support its regulatory mission. As 

discussed, the uncertainty in the 

markets, which creates challenges for 

members and investors, also impacts 

FINRA. For example, market volatility 

increases the risk that FINRA’s reserve 

portfolio will fall below the appropriate 

minimum.125 This limits FINRA’s 

flexibility in relying on its reserves to 

cover funding gaps and indicates the 

need for stable funding as soon as 

practicable. 

Further, FINRA notes that consistent 

investor protection is of vital 

importance, particularly in times of 

uncertainty, where FINRA has seen an 

increase in customer complaints and 

alerts from its surveillance programs.126

Financial limitations that constrain 

FINRA’s ability to carry out its mission 

would have material negative 

implications for investors and the 

financial markets. Taking these 

concerns into account, FINRA believes 

that the most prudent course of action 

is to start increasing some fees in 2025, 

but to stagger the implementation over 

multiple years. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 127 and paragraph (f)(2) of 

Rule 19b–4 thereunder.128 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 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2024–019 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–2024–019. 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 (http://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 

FINRA. 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–FINRA–2024–019 and 

should be submitted on or before 

December 18, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.129

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27764 Filed 11–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101690; File No. SR– 

NASDAQ–2024–067] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Its 

Fees for Connectivity and Co-Location 

Services 

November 21, 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 November 

8, 2024, 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. 


ddrumheller on DSK120RN23PROD with NOTICES1
93732 Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 

3The Exchange initially filed the proposed 

pricing change on March 1, 2024 (SR–NASDAQ– 

2024–008). On April 29, 2024, the Exchange 

withdrew that filing and submitted SR–NASDAQ– 

2024–020. The Exchange withdrew SR–NASDAQ– 

2024–020 on June 27, 2024 and replaced it with 

SR–NASDAQ–2024–032. The Exchange withdrew 

SR–NASDAQ–2024–032 and replaced it with SR– 

NASDAQ–2024–053 on September 10, 2024. On 

October 11, 2024, the Exchange replaced SR– 

NASDAQ–2024–053 with SR–NASDAQ–2024–060. 

The instant filing replaces SR–NASDAQ–2024–060. 

4The Exchange proposes to exclude the GPS 

Antenna fees from the proposed fee increase 

because, unlike the other fees in General 8, the 

Exchange recently increased its GPS Antenna fees. 

See Securities Exchange Act Release No. 34–99126 

(December 8, 2023), 88 FR 86712 (December 14, 

2023) (SR–NASDAQ–2023–052). The Exchange also 

proposes to exclude the Cabinet Proximity Option 

Fee for cabinets with power density >10kW from 

the proposed fee increase because the Exchange 

recently established such fee. See Securities 

Exchange Act Release No. 34–99796 (March 20, 

2024), 89 FR 21088 (March 26, 2024) (SR– 

NASDAQ–2024–013). Similarly, the Exchange 

proposes to exclude from the proposed fee increase 

those fees that the Exchange recently established for 

services in its new NY11–4 expansion facility. See 

Securities Exchange Act Release No. 34–101267 

(October 7, 2024), 89 FR 82666 (October 11, 2024) 

(SR–NASDAQ–2024–056). 

5Remote MITCH Wave Ports are for clients colocated at other third-party data centers, through 

which NASDAQ TotalView ITCH market data is 

distributed after delivery to those data centers via 

wireless network. 

6See https://fred.stlouisfed.org/series/ 

PCU51825182#0. 

7See https://www.bls.gov/ppi/overview.htm. 

8See Id. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Exchange’s fees for connectivity and colocation services, 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 

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 the Exchange’s fees 

relating to connectivity and co-location 

services.3 Specifically, the Exchange 

proposes a one-time adjustment to raise 

its fees for connectivity and co-location 

services in General 8, fees assessed for 

remote multi-cast ITCH (‘‘MITCH’’) 

Wave Ports in Equity 7, Section 115, 

and certain fees related to Nasdaq 

Testing Facilities in Equity 7, Section 

130 by 10%, with certain exceptions. 

General 8, Section 1 includes the 

Exchange’s fees that relate to 

connectivity, including fees for cabinets, 

external telco/inter-cabinet connectivity 

fees, fees for connectivity to the 

Exchange, fees for connectivity to third 

party services, fees for market data 

connectivity, fees for cabinet power 

install, and fees for additional charges 

and services. General 8, Section 2 

includes the Exchange’s fees for direct 

connectivity services, including fees for 

direct circuit connection to the 

Exchange, fees for direct circuit 

connection to third party services, and 

fees for point of presence connectivity. 

With the exceptions of the Exchange’s 

GPS Antenna fees and the Cabinet 

Proximity Option Fee for cabinets with 

power density >10kW,4 the Exchange 

proposes to increase its fees throughout 

General 8 by 10%. 

In addition to increasing fees in 

General 8, the Exchange also proposes 

to increase certain fees in Equity 7. 

First, the Exchange proposes to increase 

the installation and recurring monthly 

fees assessed for remote MITCH Wave 

Ports 5 in Equity 7, Section 115(g)(1) by 

10%. In addition, the Exchange 

proposes to increase certain fees in 

Section 130(d), which relate to the 

Nasdaq Testing Facility. Equity 7, 

Section 130(d)(1)(C) provides that 

subscribers to the Nasdaq Testing 

Facility (‘‘NTF’’) located in Carteret, 

New Jersey shall pay a fee of $1,000 per 

hand-off, per month for connection to 

the NTF. The hand-off fee includes 

either a 1Gb or 10Gb switch port and a 

cross connect to the NTF. In addition, 

Equity 7, Section 130(d)(1)(C) provides 

that subscribers shall also pay a onetime installation fee of $1,000 per handoff. The Exchange proposes to increase 

these aforementioned fees by 10% to 

require that subscribers to the NTF shall 

pay a fee of $1,100 per hand-off, per 

month for connection to the NTF and a 

one-time installation fee of $1,100 per 

hand-off. 

The proposed increases in fees would 

enable the Exchange to maintain and 

improve its market technology and 

services to remain competitive with its 

peers. Over the years, customer demand 

for more sophisticated, higherthroughput, lower-latency, and higherpower connectivity solutions has 

increased. The Exchange continues to 

invest in maintaining, improving, and 

enhancing its connectivity and colocation products, services, and 

facilities—for the benefit and often at 

the behest of its customers. Such 

enhancements include refreshing 

hardware and expanding Nasdaq’s 

existing co-location facility to offer 

customers additional space and power. 

Nevertheless, and with the exception of 

fees that were established as part of a 

new service in 2017 (and have remained 

unchanged since their adoption), the 

Exchange has not increased any of the 

fees included in the proposal since prior 

to 2017, and many of the fees date back 

to between 2010 and 2014. For each of 

the connectivity products and services 

that pre-date 2017, inflation (as 

measured using the ‘‘Data PPI’’ metric 

described below) has been between 

roughly 15–17%, and in no instance has 

such inflation been less than 10%. 

Nevertheless, the Exchange proposes to 

increase its fees only with respect to the 

10% inflation that has occurred since 

2017. 

As discussed below, the Exchange 

proposes to adjust its fees by an 

industry- and product-specific 

inflationary measure. It is reasonable 

and consistent with the Act for the 

Exchange to recoup its investments, at 

least in part, by adjusting its fees. 

Continuing to operate at fees frozen at 

2010–2017 levels impacts the 

Exchange’s ability to enhance its 

offerings and the interests of market 

participants and investors. 

The fee increases the Exchange 

proposes are based on an industryspecific Producer Price Index (‘‘PPI’’), 

which is a tailored measure of 

inflation.6 As a general matter, the 

Producer Price Index is a family of 

indexes that measures the average 

change over time in selling prices 

received by domestic producers of 

goods and services. PPI measures price 

change from the perspective of the 

seller. This contrasts with other metrics, 

such as the Consumer Price Index 

(‘‘CPI’’), that measure price change from 

the purchaser’s perspective.7 About 

10,000 PPIs for individual products and 

groups of products are tracked and 

released each month.8 PPIs are available 

for the output of nearly all industries in 

the goods-producing sectors of the U.S. 

economy—mining, manufacturing, 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93733 

9NAICS appears in table 5 of the PPI Detailed 

Report and is available at https://data.bls.gov/ 

timeseries/PCU518210518210. 

10See https://www.bls.gov/ppi/factsheets/ 

producer-price-index-for-the-data-processing-andrelated-servicesindustry-naics-518210.htm. 

11See https://www.usinflationcalculator.com/ 

inflation/consumer-price-index-and-annualpercent-changesfrom-1913-to-2008/. 

12See supra discussion of connectivity product 

and facility improvements. Additionally, other 

exchanges have filed for increases in certain fees, 

based in part on comparisons to inflation. See, e.g., 

Securities Exchange Act Release Nos. 34–100004 

(April 22, 2024), 89 FR 32465 (April 26, 2024) (SR– 

CboeBYX–2024–012); and 34–100398 (June 21, 

2024), 89 FR 53676 (June 27, 2024) (SR–BOX–2024– 

16); Securities Exchange Act Release No. 34–100994 

(September 10, 2024), 89 FR 75612 (September 16, 

2024) (SR–NYSEARCA–2024–79). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(4) and (5). 

15See https://www.officialdata.org/us/inflation/ 

2017?amount=1. 

agriculture, fishing, and forestry—as 

well as natural gas, electricity, and 

construction, among others. The PPI 

program covers approximately 69 

percent of the service sector’s output, as 

measured by revenue reported in the 

2017 Economic Census. 

For purposes of this proposal, the 

relevant industry-specific PPI is the 

Data Processing and Related Services 

PPI (‘‘Data PPI’’), which is an industry 

net-output PPI that measures the 

average change in selling prices 

received by companies that provide data 

processing services. 

The Data PPI was introduced in 

January 2002 by the Bureau of Labor 

Statistics (‘‘BLS’’) as part of an ongoing 

effort to expand Producer Price Index 

coverage of the services sector of the 

U.S. economy and is identified as 

NAICS—518210 in the North American 

Industry Classification System.9

According to the BLS ‘‘[t]he primary 

output of NAICS 518210 is the 

provision of electronic data processing 

services. In the broadest sense, 

computer services companies help their 

customers efficiently use technology. 

The processing services market consists 

of vendors who use their own computer 

systems—often utilizing proprietary 

software—to process customers’ 

transactions and data. Companies that 

offer processing services collect, 

organize, and store a customer’s 

transactions and other data for recordkeeping purposes. Price movements for 

the NAICS 518210 index are based on 

changes in the revenue received by 

companies that provide data processing 

services. Each month, companies 

provide net transaction prices for a 

specified service. The transaction is an 

actual contract selected by probability, 

where the price-determining 

characteristics are held constant while 

the service is repriced. The prices used 

in index calculation are the actual 

prices billed for the selected service 

contract.’’ 10

The Exchange believes the Data PPI is 

an appropriate measure to be considered 

in the context of the proposed rule 

change to modify the fee for its 

connectivity products because the 

Exchange uses its ‘‘own computer 

systems’’ and ‘‘proprietary software,’’ 

i.e., its own data center and proprietary 

matching engine software, respectively, 

to collect, organize, store and report 

customers’ transactions in U.S. equity 

securities on the Exchange’s proprietary 

trading platform. In other words, the 

Exchange is in the business of data 

processing and related services. 

For purposes of this proposed rule 

change, the Exchange examined the 

Data PPI value for the period from 

January 2017 to August 2024. The Data 

PPI had a starting value of 105.6 in 

January 2017 and an ending value of 

116.022 in August 2024, a 10.422% 

increase. This indicates that companies 

who are also in the data storage and 

processing business have generally 

increased prices for a specified service 

covered under NAICS 518210 by an 

average of 10.422% during this period. 

Based on that percentage change, the 

Exchange proposes to make a one-time 

fee increase of only 10%, which reflects 

an increase covering roughly the entire 

period since the last price adjustments 

to these fees were made. 

The Exchange further believes the 

Data PPI is an appropriate measure for 

purposes of the proposed rule change on 

the basis that it is a stable metric with 

limited volatility, unlike other 

consumer-side inflation metrics. In fact, 

the Data PPI has not experienced a 

greater than 2.16% increase for any one 

calendar year period since Data PPI was 

introduced into the PPI in January 2002. 

The average calendar year change from 

January 2002 to December 2023 was 

.62%, with a cumulative increase of 

15.67% over this 21-year period. The 

Exchange believes the Data PPI is 

considerably less volatile than other 

inflation metrics such as CPI, which has 

had individual calendar-year increases 

of more than 6.5%, and a cumulative 

increase of over 73% over the same 

period.11

The Exchange believes the Data PPI, 

and significant investments into, and 

enhanced performance of, the Exchange 

support the reasonableness of the 

proposed fee increases.12

These proposed fee increases will be 

immediately effective upon filing. 

However, going forward and until 

December 1, 2024, the Exchange will 

waive all fees set forth herein to the 

extent that such fees exceed the levels 

that would have been charged for the 

same products and services purchased 

during that time period, had such fees 

been calculated at the rates set forth in 

SR–NASDAQ–2024–053 (i.e., pricing 

reflective of a 5.5% increase from prior 

fee levels). This waiver is reasonable, 

equitable, and not unfairly 

discriminatory because it will afford all 

customers in excess of the 30-day prior 

notice period for fee changes set forth in 

the Exchange’s service terms. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,13 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,14 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. 

This belief is based on two factors. 

First, the current fees do not properly 

reflect the quality of the services and 

products, as fees for the services and 

products in question have been static in 

nominal terms, and therefore falling in 

real terms due to inflation. Second, the 

Exchange believes that investments 

made in enhancing the capacity and 

speed of Exchange systems increase the 

performance of the services and 

products. 

The Proposed Rule Change Is 

Reasonable 

As noted above, the Exchange has not 

increased any of the fees included in the 

proposal since 2017 or earlier. However, 

in the years following the last fee 

increases, the Exchange has made 

significant investments in upgrades to 

its connectivity products, services, and 

facilities, enhancing the quality of its 

services. In other words, Exchange 

customers have greatly benefitted, while 

the Exchange’s ability to recoup its 

investments has been hampered. 

Between 2017 and 2024, the inflation 

rate is 3.64% per year, on average, 

producing a cumulative inflation rate of 

28.43%.15 Using the more targeted 

inflation number of Data PPI, the 

cumulative inflation rate was 10.422%. 

The exchange believes the Data PPI is a 

reasonable metric to base this fee 

increase on because it is targeted to 

producer-side increases in the data 

processing industry. 

Notwithstanding inflation, as noted 

above, the Exchange has not increased 


ddrumheller on DSK120RN23PROD with NOTICES1
93734 Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 

16See, e.g., Securities Exchange Act Release No. 

34–101078 (September 18, 2024), 89 FR 77937 

(September 2024, 2024) (SR–NASDAQ–2024–054 

(Notice of Filing and Immediate Effectiveness of 

Proposed Rule Change To Expand [the Exchange’s] 

Co-Location Services). 17 15 U.S.C. 78s(b)(3)(A)(ii). 

its fees at all for over seven years for the 

subject services. The proposed fee 

changes represent a modest increase 

from the current fees. The Exchange 

believes the proposed fee increase is 

reasonable in light of the Exchange’s 

continued expenditure in maintaining a 

robust technology ecosystem. 

Furthermore, the Exchange continues to 

invest in maintaining and enhancing its 

connectivity products—for the benefit 

and often at the behest of its customers 

and global investors. Such 

enhancements include refreshing all 

aspects of the technology ecosystem 

including software, hardware, and 

network while introducing new and 

innovative products and expanded and 

modernized facilities.16 The goal of the 

enhancements discussed above, among 

other things, is to provide faster, highercapacity, and more modern connectivity 

products and services. Accordingly, the 

Exchange continues to expend resources 

to innovate and modernize technology 

so that it may benefit its members in 

offering its connectivity products and 

services. 

The Proposed Fees Are Equitably 

Allocated and Not Unfairly 

Discriminatory 

The Exchange believes that the 

proposed fee increases are equitably 

allocated and not unfairly 

discriminatory because they would 

apply to all market participants that 

choose to purchase connectivity 

products and services from the 

Exchange. Any participant that chooses 

to purchase the Exchange’s connectivity 

products and services would be subject 

to the same Fee Schedule, regardless of 

what type of business they operate or 

the use they plan to make use of the 

products and services. Additionally, the 

fee increase would be applied uniformly 

to market participants without regard to 

Exchange membership status or the 

extent of any other business with the 

Exchange or affiliated entities. The 

Exchange also believes that the proposal 

represents an equitable allocation of 

reasonable dues, fees and other charges 

because Exchange fees have fallen in 

real terms during the relevant period. 

Finally, the Exchange believes that the 

proposed fee changes are not unfairly 

discriminatory because the fees would 

be assessed uniformly across all market 

participants, in the same manner they 

are today, that voluntarily purchase the 

Exchange’s connectivity products and 

services, which would remain available 

for purchase by all market participants. 

These proposed fee increases will be 

immediately effective upon filing. 

However, going forward and until 

December 1, 2024, the Exchange will 

waive all fees set forth herein to the 

extent that such fees exceed the levels 

that would have been charged for the 

same products and services purchased 

during that time period, had such fees 

been calculated at the rates set forth in 

SR–NASDAQ–2024–053 (i.e., pricing 

reflective of a 5.5% increase from prior 

fee levels). This waiver is reasonable, 

equitable, and not unfairly 

discriminatory because it will afford all 

customers in excess of the 30-day prior 

notice period for fee changes set forth in 

the Exchange’s service terms. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed fees will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intramarket Competition 

The Exchange believes that the 

proposed fees do not put any market 

participants at a relative disadvantage 

compared to other market participants. 

As noted above, the fee schedule would 

continue to apply to all purchasers of 

the Exchange’s connectivity products 

and services in the same manner as it 

does today albeit at inflation-adjusted 

rates for certain fees, and customers may 

choose whether to purchase these 

products and services at all. The 

Exchange also believes that the level of 

the proposed fees neither favor nor 

penalize one or more categories of 

market participants in a manner that 

would impose an undue burden on 

competition. Likewise, the proposed fee 

waiver described above will apply to all 

purchasers of the Exchange’s 

connectivity products and services in 

the same manner and therefore will not 

burden competition among them. 

Intermarket Competition 

The Exchange believes that the 

proposed fees do not impose a burden 

on competition or on other SROs that is 

not necessary or appropriate. In 

determining the proposed fees, the 

Exchange utilized an objective and 

stable metric with limited volatility. 

Utilizing Data PPI over a specified 

period of time is a reasonable means of 

recouping the Exchange’s investment in 

maintaining and enhancing its 

connectivity products, services, and 

facilities. The Exchange believes 

utilizing Data PPI, a tailored measure of 

inflation, to increase certain fees for 

connectivity products and services to 

recoup the Exchange’s investment in 

maintaining and enhancing such 

products, services, and its facilities 

would not impose a burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(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: 

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–2024–067 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–2024–067. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93735 

18 17 CFR 200.30–3(a)(12). 

1 12 U.S.C. 5465(e)(1). 

2 17 CFR 240.19b–4(n)(1)(i). 

3See Securities Exchange Act Release No. 99149 

(Dec. 13, 2023), 89 FR 2714 (Jan. 16, 2024) (S7–23– 

22) (‘‘Adopting Release,’’ and the rules adopted 

therein as ‘‘Treasury Clearing Rules’’). See also 17 

CFR 240.15c3–3a. 

4Securities Exchange Act Release No. 99845 

(Mar. 22, 2024), 89 FR 21586 (Mar. 28, 2024) (File 

No. SR–FICC–2024–802) (‘‘Notice of Filing’’). On 

March 14, 2024, FICC filed the advance notice as 

a proposed rule change with the Commission 

pursuant to Section 19(b)(1) of the Exchange Act, 

15 U.S.C. 78s(b)(1), and Rule 19b–4 thereunder, 17 

CFR 240.19b–4. Securities Exchange Act Release 

No. 99844 (March 22, 2024), 89 FR 21603 (Mar. 28, 

2024) (File No. SR–FICC–2024–007) (‘‘Proposed 

Rule Change’’). On April 24, 2024, the Commission 

designated a longer period within which to 

approve, disapprove, or institute proceedings to 

determine whether to approve or disapprove the 

proposed rule change, pursuant to section 19(b)(2) 

of the Exchange Act, 15 U.S.C. 78s(b)(2)(ii). 

Securities Exchange Act Release No. 100022 (Apr. 

24, 2024), 89 FR 34289 (Apr. 30, 2024) (File No. 

SR–FICC–2024–007). On June 21, 2024, the 

Commission published in the Federal Register an 

Order Instituting Proceedings to determine whether 

to approve or disapprove the proposed rule change. 

Securities Exchange Act Release No. 100401 (Jun. 

21, 2024), 89 FR 53690 (Jun. 27, 2024) (File No. SR– 

FICC–2024–007). On September 18, 2024, the 

Commission designated a longer period for 

Commission action on the proceedings to determine 

whether to disapprove the proposed rule change, 

until November 10, 2024. Securities Exchange Act 

Release No. 101082 (Sep. 18, 2024), 89 FR 77949 

(Sep. 24, 2024) (File No. SR–FICC–2024–007). On 

October 25, 2024, FICC filed Partial Amendment 

No. 1 to the Proposed Rule Change. Securities 

Exchange Act Release No. 101454 (Oct. 28, 2024), 

89 FR 87441 (Nov. 1, 2024) (File No. SR–FICC– 

2024–007). 

5Pursuant to Section 806(e)(1)(H) of the Clearing 

Supervision Act, the Commission may extend the 

review period of an advance notice for an 

additional 60 days, if the changes proposed in the 

advance notice raise novel or complex issues, 

subject to the Commission providing the financial 

market utility (‘‘FMU’’) with prompt written notice 

of the extension.12 U.S.C. 5465(e)(1)(H); see supra 

note 4, at 21602 (explaining the Commission’s 

rationale for determining that the proposed changes 

in the advance notice raise novel and complex 

issues). 

6See 12 U.S.C. 5465(e)(1)(D). A memo regarding 

the Request for Additional Information and the 

tolled period of review is available at https://

www.sec.gov/comments/sr-ficc-2024-802/ 

srficc2024802-462751-1210414.pdf. 

7See 12 U.S.C. 5465(e)(1)(E)(ii) and (G)(ii). A 

memo regarding receipt of FICC’s response to the 

Request for Additional Information is available at 

https://www.sec.gov/comments/sr-ficc-2024-802/ 

srficc2024802-494123-1433426.pdf. 

8See 12 U.S.C. 5465(e)(1)(D). A memo regarding 

the Request for Additional Information and the 

tolled period of review is available at https://

www.sec.gov/comments/sr-ficc-2024-802/ 

srficc2024802-524215-1504462.pdf. 

9See 12 U.S.C. 5465(e)(1)(E)(ii) and (G)(ii). A 

memo regarding receipt of FICC’s response to the 

Request for Additional Information is available at 

https://www.sec.gov/comments/sr-ficc-2024-802/ 

srficc2024802-539295-1544222.pdf. 

10Securities Exchange Act Release No. 101455 

(Oct. 28, 2024), 89 FR 87449 (Nov. 1, 2024) (File 

No. SR–FICC–2024–802) (‘‘Notice of Partial 

Amendment’’). 

11Comments on the Advance Notice are available 

at https://www.sec.gov/comments/sr-ficc-2024-802/ 

srficc2024802.htm. Comments on the Proposed 

Rule Change are available at https://www.sec.gov/ 

comments/sr-ficc-2024-007/srficc2024007.htm. 

Because the proposals contained in the Proposed 

Rule Change and the Advance Notice are the same, 

the Commission considers all comments received 

on the proposal, regardless of whether the 

comments are submitted with respect to the 

Advance Notice or the Proposed Rule Change. The 

Continued 

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–2024–067 and should be 

submitted on or before December 18, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27759 Filed 11–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101675; File No. SR–FICC– 

2024–802] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

No Objection To Advance Notice, as 

Modified by Partial Amendment No. 1, 

To Modify the GSD Rules (i) Regarding 

the Separate Calculation, Collection 

and Holding of Margin for Proprietary 

Transactions and That for Indirect 

Participant Transactions, and (ii) To 

Address the Conditions of Note H to 

Rule 15c3–3a 

November 21, 2024. 

On March 14, 2024, Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) advance 

notice SR–FICC–2024–802 pursuant to 

Section 806(e)(1) of Title VIII of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act entitled the 

Payment, Clearing, and Settlement 

Supervision Act of 2010 (‘‘Clearing 

Supervision Act’’) 1 and Rule 19b– 

4(n)(1)(i) under the Securities Exchange 

Act of 1934 (‘‘Exchange Act’’).2 In the 

advance notice, FICC proposes to 

modify its Government Securities 

Division (‘‘GSD’’) Rulebook (‘‘GSD 

Rules’’) to calculate, collect, and hold 

margin for transactions that a direct 

GSD participant enters into for its own 

benefit (‘‘proprietary transactions’’) 

separately from margin a direct 

participant submits to FICC on behalf of 

indirect participants, and to address 

conditions of Note H to Rule 15c3–3a 

under the Exchange Act (‘‘Advance 

Notice’’).3 The Advance Notice was 

published for public comment in the 

Federal Register on March 28, 2024.4

Upon publication of notice of filing of 

the advance notice, the Commission 

extended the review period of the 

advance notice for an additional 60 days 

because the Commission determined 

that the advance notice raised novel and 

complex issues.5

On April 24, 2024, the Commission 

requested additional information from 

FICC pursuant to Section 806(e)(1)(D) of 

the Clearing Supervision Act, which 

tolled the Commission’s period of 

review of the advance notice until 120 

days from the date the information 

requested by the Commission was 

received by the Commission.6 On June 

25, 2024, the Commission received 

FICC’s response to the Commission’s 

request for additional information.7 On 

September 24, 2024, the Commission 

requested additional information from 

FICC pursuant to Section 806(e)(1)(D) of 

the Clearing Supervision Act, which 

tolled the Commission’s period of 

review of the advance notice until 120 

days from the date the information 

requested by the Commission was 

received by the Commission.8 On 

October 21, 2024, the Commission 

received FICC’s response to the 

Commission’s September 24, 2024 

request for additional information.9 On 

October 25, 2024, FICC filed Partial 

Amendment No. 1 to the Advance 

Notice.10 The Advance Notice, as 

modified by Partial Amendment No. 1, 

is referred to herein as the ‘‘Advance 

Notice.’’ 

The Commission has received 

comments regarding the substance of 

the Advance Notice.11 The Commission 


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