8744 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 

7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b–4(f). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

outdated language in the Fees Schedule 

will make the Fees Schedule easier to 

read and alleviate potential confusion. 

The alleviation of potential confusion 

will remove impediments to and perfect 

the mechanism of a free and open 

market and a national market system, 

and, in general, protect investors and 

the public interest. 

The Exchange believes assessing the 

$400 per month, per login ID fee to the 

first 15 login IDs (instead of the first 10) 

is reasonable because the Exchange 

expended significant resources 

developing PULSe and desires to recoup 

more of those costs. The Exchange 

believes this proposed rule change is 

equitable and not unfairly 

discriminatory because all TPHs who 

desire to use PULSe will be subject to 

this change. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed changes to alleviate confusion 

are not intended for competitive reasons 

and only apply to CBOE. Additionally, 

the Exchange does not believe the 

proposed change to assess the PULSe 

login Id [sic] fee to the first 15 login Ids 

[sic] of a TPH will impose any burden 

on intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because the 

proposed change applies to all Trading 

Permit Holders. The Exchange believes 

this proposal will not cause an 

unnecessary burden on intermarket 

competition because the proposed 

change was not motivated by 

intermarket competition. To the extent 

that the proposed changes make CBOE 

a more attractive marketplace for market 

participants at other exchanges, such 

market participants are welcome to 

become CBOE market participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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 7 and paragraph (f) of Rule 

19b–4 8 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is 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 will institute proceedings 

to determine whether the proposed rule 

change 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– 

CBOE–2015–014 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE-2015–014. 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 Web site (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 Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2015–014 and should be submitted on 

or before March 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03226 Filed 2–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74258; File No. SR– 

NASDAQ–2015–008] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7018 Fees 

February 11, 2015. 

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 February 

2, 2015, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

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 

NASDAQ is proposing to modify 

NASDAQ Rule 7018 fees assessed for 

execution and routing securities listed 

on NASDAQ, the New York Stock 

Exchange (‘‘NYSE’’) and on exchanges 

other than NASDAQ and NYSE. 

The text of the proposed rule change 

is available at nasdaq.cchwallstreet.com 

at NASDAQ’s principal office, and at 

the Commission’s Public Reference 

Room. 


emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 8745 

3 If shares remain un-executed, they are posted to 

the book or cancelled. Once on the book, should the 

order subsequently be locked or crossed by another 

market center, the System will not route the order 

to the locking or crossing market center. See Rule 

4758(a)(1)(A)(xi). 

4See NASDAQ OMX PHLX LLC Pricing 

Schedule, Section VIII(a)(1). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4) and (5). 

7For a description of STGY, SCAN, SKNY and 

SKIP routing strategies, see Rules 4758(a)(1)(A)(i) 

and (ii) [sic]. 8BX provides rebates to market participants that 

remove liquidity ranging from $0.0004 to $0.0015. 

See BX Rule 7018(a). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NASDAQ 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 those 

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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ is proposing to amend 

NASDAQ Rule 7018(a) to modify the 

fees assessed under the rule for 

securities it trades priced at $1 or more. 

Specifically, NASDAQ proposes to 

change the fee assessed for CART orders 

in securities listed on NASDAQ (‘‘Tape 

C’’), NYSE (‘‘Tape A’’) and on exchanges 

other than NASDAQ and the NYSE 

(‘‘Tape B’’) (collectively, the ‘‘Tapes’’). 

In addition, NASDAQ is proposing to 

change the fee assessed for orders in 

Tape A securities that are routed to 

NYSE and then routed to another venue 

for execution. Lastly, NASDAQ is 

proposing to change the fee assessed for 

orders in Tape B securities that are 

routed to NYSEAmex or NYSEArca and 

then routed to another venue for 

execution. 

CART is a routing option by which 

orders in securities of all Tapes route to 

the NASDAQ OMX BX Equities Market 

(‘‘BX’’) then the NASDAQ OMX PHLX 

PSX System (‘‘PSX’’), and then the 

System.3 The Exchange currently 

assesses no charge for CART orders that 

execute on BX and passes-through all 

fees assessed and rebates offered by PSX 

for such orders. CART orders executed 

on PSX result in a pass through charge 

of $0.0024 per share executed.4 The 

Exchange is proposing to now assess a 

set charge of $0.0030 per share executed 

for CART orders in any Tape security 

that executes on PSX in lieu of passing 

through credits and rebates. 

The Exchange is also proposing to 

change the fees assessed for Tape A 

securities routed to NYSE and then 

routed to another venue for execution. 

The Exchange passes through any 

routing fees charged to NASDAQ by 

NYSE for these orders, which currently 

is $0.0030 per share executed but may 

vary based on changes to the NYSE fee 

schedule. NASDAQ is proposing to 

eliminate pass through fees and assess 

a set fee of $0.0030 per share executed. 

Similarly, NASDAQ is proposing to 

eliminate pass through fees and assess 

a fee of $0.0030 per share executed for 

orders in Tape B securities that are 

routed to NYSEAmex or NYSEArca and 

then routed to another venue for 

execution. The Exchange currently 

passes through any routing fees charged 

to NASDAQ by NYSEAmex or 

NYSEArca for these orders, which 

currently is $0.0030 per share executed 

but may vary based on changes to those 

exchanges’ respective fee schedules. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,5 in 

general, and with Sections 6(b)(4) and 

6(b)(5) of the Act,6 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 or 

system which the Exchange operates or 

controls, and is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest; and 

are not designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

NASDAQ believes that the proposed 

changes to the charges assessed for 

CART orders in securities of any Tape 

that execute on PSX are reasonable 

because they eliminate discounted 

pricing from the fee schedule and more 

closely aligns [sic] the fee received with 

the costs associated with providing 

routing services. The Exchange incurs 

costs in operating and supporting the 

routing function, which are in addition 

to the fees of other exchanges that it 

incurs when a routed order executes on 

another venue. To cover such costs, the 

Exchange assesses the same fee as is 

being proposed for other routed orders, 

such as STGY, SCAN, SKNY and SKIP 

orders, which are assessed a charge of 

$0.0030 per share executed.7 Thus, the 

current pass through fee results in a 

discount to the fee assessed for use of 

the routing function for other routed 

orders. The Exchange notes that CART 

orders that execute on BX are not 

assessed a charge, but rather the 

Exchange receives a rebate from BX for 

the routed execution.8 The Exchange 

also believes that the proposed changes 

are reasonable because they remove 

complexity from the fee schedule and 

assess a fee that is not dependent on 

knowing what the current liquidity 

removal rate is on PSX. NASDAQ 

believes that the proposed changes to 

CART order fees are equitably allocated 

because all member firms that receive 

an execution on PSX will be assessed a 

fee that is more closely aligned with the 

costs incurred by NASDAQ, as noted 

above. NASDAQ believes that the 

proposed changes to CART order fees do 

not discriminate unfairly because they 

eliminate a distinction in the fees 

whereby discounted fees are charged for 

use of the Exchange’s routing 

functionality. Moreover, the proposed 

changes do not discriminate unfairly 

because they eliminate a distinction in 

the routing fees whereby some fees are 

fixed and others are based on fee 

assessed by other markets. As noted 

above, most routing fees are based on a 

set fee, and are not tied to the fees of 

other markets. 

The Exchange believes that the 

change to eliminate pass through fees 

for Tape A securities that are routed to 

NYSE and then routed to another venue 

for execution, and the change to 

eliminate pass through fees for Tape B 

securities that are routed to NYSEAmex 

and NYSEArca and then routed to 

another venue for execution are 

reasonable because they remove 

complexity from the fee schedule and 

assess a fee that is not dependent on 

knowing what the current routing rates 

are on those markets. Moreover, the 

proposed new fees are identical to the 

fees assessed currently. The Exchange 

believes that the proposed fee changes 

are equitably allocated because all 

member firms that receive an execution 

on another venue in these securities will 

be assessed the same fee. Lastly, the 

Exchange believes that the proposed 


emcdonald on DSK67QTVN1PROD with NOTICES
8746 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 

9 15 U.S.C. 78f(b)(8). 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 200.30–3(a)(12). 

changes do not discriminate unfairly 

because they eliminate a distinction in 

the routing fees whereby some fees are 

fixed and others are based on fee 

assessed by other markets. As noted 

above, most of NASDAQ’s routing fees 

are based on a set fee, and are not tied 

to the fees of other markets. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule changes will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended.9

NASDAQ 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, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, 

NASDAQ 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, and because market 

participants may readily adjust their 

order routing practices, NASDAQ 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. In this instance, the changes to 

routing fees and credits do not impose 

a burden on competition because 

NASDAQ’s routing services are optional 

and are the subject of competition from 

other exchanges and broker-dealers that 

offer routing services, as well as the 

ability of members to use their own 

routing capabilities. The increased fees 

for execution of CART orders on PSX 

are reflective of a need to better align 

the fees received with the costs incurred 

in operating and supporting the routing 

function. The proposed changes to 

orders in certain Tape securities routed 

to NYSE, NYSEAmex, and NYSEArca 

do not represent an increase or decrease 

in fees, but rather, like the change to 

CART orders, removes [sic] an 

unnecessarily complex process to 

determine the fee assessed with a set 

fee, which is consistent with other 

NASDAQ routing fees. Under the 

current fees, a member firm must know 

what the respective fee schedules of 

PSX, NYSE, NYSEAmex and NYSEArca 

are at any given time. Thus, the changes 

will simplify the fee schedule by 

providing certainty to the fee assessed. 

For these reasons, NASDAQ does not 

believe that any of the proposed changes 

will impair the ability of members or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. While the 

Exchange does not believe that the 

proposed changes will result in any 

burden on competition, if the changes 

proposed herein are unattractive to 

market participants it is likely that 

NASDAQ will lose market share as a 

result. 

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 change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.10 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. 

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– 

NASDAQ–2015–008 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2015–008. 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 Web site 

(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 Web site viewing and 

printing in the Commission’s Public 

Reference Room on official business 

days between the hours of 10:00 a.m. 

and 3:00 p.m. Copies of such filing also 

will be available for inspection and 

copying at the principal offices of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2015–008, and should be 

submitted on or before March 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03231 Filed 2–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Regulatory Fairness Hearing, Region 

III—Virginia Beach, Virginia 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Notice of open Hearing of 

Region III Small Business Owners in 

Virginia Beach, VA. 

SUMMARY: The SBA, Office of the 

National Ombudsman is issuing this 

notice to announce the location, date 

and time of the Virginia Beach, VA 

Regulatory Fairness Hearing. This 

hearing is open to the public. 

DATES: The hearing will be held on 

Tuesday, March 24, 2015, from 10:00 

a.m. to 12:00 p.m. (EDT). 

ADDRESSES: The hearing will be at the 

Meyera Oberndorf Library Auditorium, 

4100 Virginia Beach Boulevard, Virginia 

Beach, VA 23452. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the Small Business Regulatory 

Enforcement Fairness Act (Pub. L. 104– 

121), Sec. 222, SBA announces the 


emcdonald on DSK67QTVN1PROD with NOTICES