Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 8727 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73967 

(December 30, 2014), 80 FR 594 (January 6, 2015) 

(SR–NASDAQ–2014–128). On January 27, 2015, the 

Exchange filed an immediately effective filing 

replacing a security on the list of securities under 

the rule. See SR–NASDAQ–2015–006 available at 

http://nasdaq.cchwallstreet.com/NASDAQ/pdf/

nasdaq-filings/2015/SR-NASDAQ-2015-006.pdf 

(awaiting Commission notice and publication in the 

Federal Register). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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. The 

proposed rule changes are not designed 

to address any competitive issue but 

rather to add specificity and clarity to 

Exchange rules, thus providing greater 

transparency regarding the operation of 

the System. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule changes. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: (a) by order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be 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– 

BATS–2015–09 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–BATS–2015–09. 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 at 100 F Street NE., 

Washington, DC 20549–1090 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 

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–BATS– 

2015–09, and should be submitted on or 

before March 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03222 Filed 2–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74259; File No. SR– 

NASDAQ–2015–010] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Clarify the 

Application of Fees to Securities Under 

the Select Symbol Program of Rule 

7018(a)(4) 

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 ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to clarify the 

fees applicable to the list of securities 

eligible for the Select Symbol program 

under Rule 7018(a)(4), and to clarify 

that the fees of the program are on a per 

share basis. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaq.cchwallstreet.com, 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 clarify that routing fees 

under Rules 7018(a)(1) through (3) 

apply to the securities of the Select 

Symbol program under Rule 7018(a)(4), 

and to clarify that fees and credits under 

the program are calculated on a per 

share executed basis. NASDAQ recently 

adopted the Select Symbol program,3

which provides lower fees for 

executions received on NASDAQ in a 

select group of securities where access 

fees may be discouraging the use of 

public markets. NASDAQ implemented 

the program on February 2, 2015. Under 

the new rule, the Exchange states that it 


emcdonald on DSK67QTVN1PROD with NOTICES
8728 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 

4See, e.g., Securities Exchange Act Release No. 

73967 (December 30, 2014), 80 FR 594, 596 (January 

6, 2015) (SR–NASDAQ–2014–128). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(3)(a)(ii). [sic] 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has requested a waiver 

of this requirement. 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

applies the fees under the rule in lieu 

of other similar fees that would 

normally apply under Rules 7018(a)(1) 

through (3). The Exchange does not 

discuss fees for routing program 

securities for execution on other 

markets. In adopting the program, the 

Exchange did not intend to exclude the 

related routing fees under Rules 

7018(a)(1) through (3). Accordingly, the 

Exchange is adding clarifying text to the 

rule that makes it clear that the fees 

assessed under Rules 7018(a)(1) through 

(3) for routing orders apply to the 

securities of the Select Symbol program. 

NASDAQ is also amending the rule 

text to make it clear that the fees and 

credits under the program are calculated 

on a per share executed basis, like the 

other access fees that they replace. The 

Exchange notes that in adopting the 

rule, it discussed that it was lowering 

the access fees for the Select Symbol 

securities from the current per share 

executed rates to the new per share 

executed fees under the program.4 The 

Exchange is adding clarifying language 

to the rule that makes it clear that the 

program’s fees are on a per share 

executed basis. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6 of the Act,5 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,6 in particular, in that it 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. 

Specifically, the proposed change 

furthers these objectives because it 

clarifies the applicability of routing fees 

under Rule 7018(a) to the securities of 

the Select Symbol program and how the 

program fees are calculated. As noted, 

the rule currently does not discuss fees 

assessed for routing orders away from 

NASDAQ for execution, but rather notes 

that the fees and credits under the 

program, which relate to executions on 

NASDAQ, are in lieu of the fees and 

credits under Rules 7018(a)(1) through 

(3). The Exchange believes that adding 

rule text that makes it clear that the 

normal routing fees apply will avoid 

any investor confusion concerning the 

applicability of the fees under the 

program. Similarly, although discussed 

in the filing adopting the program, the 

rule text does not currently reflect that 

the fees and credits are based on a per 

share executed basis. The Exchange 

believes that adding rule text that 

clarifies that the fees and credits are 

based on a per share executed 

calculation will serve to avoid any 

investor confusion caused by not 

including the language. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

Specifically, the change does not alter 

the meaning or application of the fees 

and credits provided under Rule 

7018(a)(4), but rather clarifies the 

applicability of the fees assessed for 

routing securities away from NASDAQ 

for execution, and how the fees and 

credits under the Select Symbol 

program are calculated. Such clarifying 

changes impose no burdens on 

competition whatsoever and, as 

discussed above, further the purposes of 

the Act by avoiding potential market 

participant confusion over the 

applicability of routing fees under the 

rule and how the fees and credits of the 

Select Symbol program are calculated. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(ii) [sic] of the Act 7 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) 9 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),10 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that NASDAQ may 

add the clarifying language 

immediately. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest 

because it will allow NASDAQ to clarify 

the intent of this rule immediately. The 

Commission sees no reason to delay the 

addition of language designed to remove 

ambiguity to the rule. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change to be operative 

upon filing with the Commission.11

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 (http://www.sec.gov/

rules/sro.shtml); or 


emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 8729 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–73951 

(Dec. 29, 2014), 80 FR 269 (Jan. 5, 2015) (SR–ICC– 

2014–23). 

4 15 U.S.C. 78s(b)(2)(C). 

5 15 U.S.C. 78q–1(b)(3)(F). 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78q–1(b)(3)(F). 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2015–010 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–2015–010. 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 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–2015–010, and should be 

submitted on or before March 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03232 Filed 2–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74257; File No. SR–ICC– 

2014–23] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Granting 

Approval of Proposed Rule Change To 

Revise ICC End-of-Day Price Discovery 

Policies and Procedures 

February 11, 2015. 

I. Introduction 

On December 18, 2014, ICE Clear 

Credit LLC (‘‘ICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change SR–ICC–2014–23 pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder.2 The proposed rule 

change was published for comment in 

the Federal Register on January 5, 

2015.3 The Commission received no 

comment letters regarding the proposed 

change. For the reasons discussed 

below, the Commission is granting 

approval of the proposed rule change. 

II. Description of the Proposed Rule 

Change 

ICC is proposing this change to revise 

the ICC End-of-Day Price Discovery 

Policies and Procedures to remove the 

ability for Clearing Participants to 

submit end-of-day submissions for 

Single Name instruments in terms of 

spread and associated recovery rate. 

This revision does not require any 

changes to the ICC Clearing Rules. 

ICC requires all Clearing Participants 

to provide end-of-day submissions for 

specific instruments related to their 

cleared open interest. ICC states that it 

uses these submissions as inputs to its 

price discovery algorithm, which 

determines end-of-day levels. 

According to ICC, it computes margin 

and guaranty fund requirements, and all 

other money movements, in price terms, 

but currently supports Clearing 

Participant submissions in terms of 

price (or the equivalent points upfront), 

or spread and associated recovery rate. 

As a result, according to ICC, the first 

step in the price discovery algorithm for 

Single Name instruments is to convert 

any submissions in terms of spread and 

associated recovery rate to the 

equivalent submission in price terms 

using the ISDA standard model. 

ICC therefore proposes to revise its 

End-of-Day Price Discovery Policies and 

Procedures to remove the ability for 

Clearing Participants to provide end-ofday submissions for Single Name 

instruments in terms of spread and 

associated recovery rate. Rather, ICC 

will require price (or the equivalent 

points upfront) submissions for all 

Single Name instruments. According to 

ICC, this change will result in the 

elimination of the use of the ISDA 

standard model to determine end-of-day 

prices for Single Name instruments. 

Furthermore, ICC also proposes to add 

clarifying language regarding its 

determination of implied recovery rates. 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 4 directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if the Commission finds 

that such proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to such selfregulatory organization. Section 

17A(b)(3)(F) of the Act 5 requires, among 

other things, that the rules of a clearing 

agency are designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and transactions, 

to assure the safeguarding of securities 

and funds which are in the custody or 

control of the clearing agency or for 

which it is responsible and, in general, 

to protect investors and the public 

interest. 

The Commission finds that the 

proposed rule change is consistent with 

Section 17A of the Act 6 and the rules 

thereunder applicable to ICC. The 

revised ICC End-of-Day Price Discovery 

Policies and Procedures will ensure ICC 

uses data that reflect its Clearing 

Participants’ view of the price of a given 

Single Name instrument, without the 

use of a model to imply a given price, 

resulting in an end-of-day price that is 

not subject to any potential model 

limitations or assumptions. As such, the 

Commission believes that the proposed 

rule change will promote the prompt 

and accurate settlement of securities 

and derivatives transactions, and 

therefore is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

ICC, in particular, Section 17A(b)(3)(F).7


emcdonald on DSK67QTVN1PROD with NOTICES