Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 14427 

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

2 17 CFR 240.19b–4. 

3The correction of a typographical error in the 

numbering in the middle of NASDAQ Rule 

7014(e)(1) will also be included (changing a ‘‘(4)’’ 

to (‘‘E’’)). 

4 15 U.S.C. 78f. 

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

generally and specific penny stock 

transactions. 

The Commission estimates that 

approximately 221 broker-dealers will 

spend an average of 87 hours annually 

to comply with this rule. Thus, the total 

compliance burden is approximately 

19,245 burden-hours per year. 

Rule 15g–4 contains record retention 

requirements. Compliance with the rule 

is mandatory. The required records are 

available only to the examination staff 

of the Commission and the self 

regulatory organizations of which the 

broker-dealer is a member. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following Web site: 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503 

or by sending an email to: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

100 F Street NE., Washington, DC 20549 

or by sending an email to PRA_

Mailbox@sec.gov. Comments must be 

submitted to OMB within 30 days of 

this notice. 

Dated: March 13, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06313 Filed 3–18–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74506; File No. SR– 

NASDAQ–2015–020] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

NASDAQ Rules 7014 

March 13, 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 March 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 changes to the 

Investor Support Program (‘‘ISP’’) and 

the Qualified Market Maker (‘‘QMM’’) 

Incentive Program under NASDAQ Rule 

7014. 

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. 

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 7014(c) to remove a 

member’s ISP credit at the $0.00005 rate 

with respect to all shares of displayed 

liquidity that are executed at a price of 

$1 or more in the Nasdaq Market Center 

during a given month, as well as the 

related qualifying requirements for an 

ISP member to qualify for such a credit. 

Also, the Exchange is proposing to 

amend NASDAQ Rule 7014(e)(1) to 

apply QMM rebates only to securities 

listed on NYSE (‘‘Tape A’’) and 

securities listed on exchanges other than 

NASDAQ and NYSE (‘‘Tape B’’). 

Specifically, only Tape A and Tape B 

securities will be eligible to receive the 

additional QMM rebate of $0.0002 per 

share executed with respect to orders 

that are executed at a price of $1 or 

more and (A) displayed a quantity of at 

least one round lot at the time of 

execution; (B) either established the 

NBBO or was the first order posted on 

NASDAQ that had the same price as an 

order posted at another trading center 

with a protected quotation that 

established the NBBO; (C) were entered 

through a QMM MPID; and (D) that no 

additional rebate will be issued with 

respect to Designated Retail Orders (as 

defined in NASDAQ Rule 7018) 

(‘‘Additional QMM Rebate Criteria’’).3

Similarly, the Exchange is proposing 

to amend NASDAQ Rule 7014(e)(2) to 

have only Tape A and Tape B securities 

receive the credit of $0.0001 per share 

executed with respect to all other 

displayed orders (other than Designated 

Retail Orders, as defined in Rule 7018) 

in securities priced at $1 or more per 

share that provide liquidity and that are 

entered through a QMM MPID. 

The proposed changes are intended to 

better align credits within the ISP and 

QMM programs, as well as to fix a 

typographical error in the rule text of 

NASDAQ Rule 7014(e)(1). 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of section 6 of the Act,4 in 

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

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

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

NASDAQ believes that the proposed 

changes to the ISP Program in NASDAQ 

Rule 7014(c) is reasonable because it 

eliminates an unnecessary credit, and 

related qualifying requirements, at the 

$0.00005 rate with respect to all shares 

of displayed liquidity that are executed 

at a price of $1 or more in the Nasdaq 

Market Center during a given month. 

The Exchange believes that the two 

other credit tiers that remain available 

to ISP members provide sufficient 

incentive. Also, the credit proposed to 

be eliminated is the least economically 

advantageous to ISP members. The 

Exchange also believes this change is 

consistent with a fair allocation of a 

reasonable fee and not unfairly 

discriminatory because the removal of 

this credit applies to all ISP members 

equally. 


Rmajette on DSK2VPTVN1PROD with NOTICES
14428 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 

6 15 U.S.C. 78f(b)(8). 7 15 U.S.C. 78s(b)(3)(A)(ii). 8 17 CFR 200.30–3(a)(12). 

The Exchange believes that the 

proposed change to the QMM Program 

in NASDAQ Rule 7014(e)(1) of only 

having Tape A and Tape B securities be 

eligible to receive the additional QMM 

rebate of $0.0002 per share executed 

with respect to orders that are executed 

at a price of $1 or more and that meet 

the Additional QMM Rebate Criteria, is 

reasonable because the Exchange 

believes that firms no longer need the 

additional incentive to quote at the 

NBBO in Nasdaq-listed securities 

(‘‘Tape C’’). The Exchange also believes 

this change is consistent with a fair 

allocation of a reasonable fee and not 

unfairly discriminatory because the 

additional rebate only applying to Tape 

A and Tape B securities will apply 

uniformly to all QMM members. 

The Exchange also believes that the 

proposed change to the QMM Program 

in NASDAQ Rule 7014(e)(2) of only 

having Tape A and Tape B securities 

receive the additional QMM credit of 

$0.0001 per share executed with respect 

to all other displayed orders (other than 

Designated Retail Orders, as defined in 

Rule 7018) in securities priced at $1 or 

more per share that provide liquidity 

and that are entered through a QMM 

MPID is reasonable because the 

Exchange believes that firms no longer 

need the additional incentive to quote 

in Tape C. 

The Exchange also believes that this 

change is consistent with a fair 

allocation of a reasonable fee and not 

unfairly discriminatory because the 

additional QMM credit only applying to 

Tape A and Tape B securities will apply 

uniformly to all QMM members. 

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.6

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 or even non-existent. 

In this instance, the changes to credits 

for the ISP and QMM programs do not 

impose a burden on competition 

because these NASDAQ incentive 

programs remain in place, still offer 

economically advantageous credits, and 

are reflective of the need for exchanges 

to offer and to let the financial 

incentives to attract order flow evolve. 

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.7 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– 

NASDAQ–2015–020 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–2015–020. 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 also 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– 

NASDAQ–2015–020, and should be 

submitted on or before April 9, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06264 Filed 3–18–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

Washington, DC 20549–2736. 

Extension: Rule 15g-3, 

SEC File No. 270–346, OMB Control No. 

3235–0392. 


Rmajette on DSK2VPTVN1PROD with NOTICES