14426 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 

16 15 U.S.C. 78f(b)(5). 17See Proposed MIAX Rule 402(i)(E)(2)(i). See 

also NYSE MKT Rule 1000, Commentary .03(a)(B); 

NYSE MKT Rule 1000A, Commentary .02(a)(B); 

NYSE Arca Equities Rule 5.2(j)(3), Commentary 

.01(a)(B); NYSE Arca Equities Rule 8.100, 

Commentary .01(a)(B); NASDAQ Rule 

5705(a)(3)(A)(ii); NASDAQ Rule 5705(b)(3)(A)(ii); 

BATS Rule 14.11(b)(3)(A)(ii); and BATS Rule 

14.11(c)(3)(A)(ii). 

18See Securities Exchange Act Release No. 40761 

(December 8, 1998), 63 FR 70952, 70959 (December 

22, 1998). 

19See Notice, supra note 3. 

20 Id. 

21See NYSE Letter, supra note 4. 

22See Securities Exchange Act Release No. 54739, 

supra note 9 (SR-Amex-2006–78). Subsequently, 

other exchanges filed similar proposals that were 

approved by the Commission. See, e.g., Securities 

Exchange Act Release Nos. 55621, supra note 9 

(approving SR–NYSEArca-2006–86); and 55269, 

supra note 9 (approving SR–NASDAQ–2006–050). 

23See id. 

24For example, with respect to ETFs for portfolio 

depositary receipts based on international or global 

indexes, the generic listing standards generally 

contain the following requirements with respect to 

the underlying index: (1) Component stocks that in 

the aggregate account for at least 90% of the weight 

of the index or portfolio each shall have a minimum 

market value of at least $100 million; (2) component 

stocks that in the aggregate account for at least 90% 

of the weight of the index or portfolio each shall 

have a minimum worldwide monthly trading 

volume over the most recent six-month period of at 

least 250,000 shares; (3) that the index observe 

certain concentration limits (e.g., that no 

component may exceed 25% of the weight of the 

index and that the five most heavily weighted 

components may not exceed 60% of the weight of 

the index); (4) that there be a minimum number of 

20 component stocks in the index; and (5) that each 

component either be an exchange-listed NMS stock 

or, if a non-U.S. stock, be listed and traded on an 

exchange that has last-sale reporting. See, e.g., 

NYSE MKT Rule 1000, Commentary .03; NYSE 

Arca Equities Rule 8.100, Commentary .01; 

NASDAQ Rule 5705(a); and BATS Rule 14.11(b). 

The requirements with respect to the underlying 

index under the generic listing standards for index 

fund shares based on international or global indexes 

are substantially similar. See, e.g., NYSE MKT Rule 

1000A, Commentary .02; NYSE Arca Equities Rule 

5.2(j)(3), Commentary .01; NASDAQ Rule 5705(b); 

and BATS Rule 14.11(c). 

25See, e.g., Securities Exchange Act Release No. 

54739, supra note 9. 

26 Id. at 71 FR 66995 n.18. See also supra note 

24 and accompanying text. 

27See Securities Exchange Act Release No. 54739, 

supra note 9, at 71 FR 66997. 

28See supra note 24 and accompanying text. 

29 15 U.S.C. 78s(b)(2). 

30 17 CFR 200.30–3(a)(12). 

with section 6(b)(5) of the Act,16 which 

requires, among other things, that the 

Exchange’s rules be designed to promote 

just and equitable principles of trade, 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. 

MIAX proposes to eliminate the 

requirement that it obtain a CSSA with 

the applicable foreign market before 

trading options on certain ETFs that 

track broad-based indexes of 

securities.17 CSSAs help to ensure that 

the listing exchange has the ability to 

obtain the information necessary to 

detect and deter potential trading 

abuses.18 According to the Exchange, it 

believes that this proposed listing 

standard for options on ETFs is 

reasonable for international and global 

indexes, and, when applied in 

conjunction with the other listing 

requirements, would result in options 

overlying ETFs that are sufficiently 

broad-based in scope and therefore not 

readily susceptible to manipulation.19

Moreover, the Exchange believes that 

the proposed rule change would benefit 

investors by providing valuable risk 

management tools.20 The NYSE Group 

agrees with these statements by the 

Exchange and supports the proposal.21

The Commission approved generic 

listing standards for ETFs based on 

international or global indexes in 

2006.22 At that time, the Commission 

determined that for certain ETFs based 

on broad-based indexes of securities, the 

generic listing standards for equities 

exchanges need not require the 

exchange to obtain a CSSA to list and 

trade such ETFs.23 These generic ETF 

listing standards contain quantitative 

criteria with respect to components 

included in the ETF’s underlying index 

that provide minimum thresholds 

regarding trading volume, market 

capitalization, number of index 

components, and index concentration 

limits.24 They do not, however, require 

the listing exchange to obtain a CSSA 

with the home country market for the 

underlying index components.25 The 

Commission stated that a CSSA with the 

home country market was not required, 

because the listing standards provided 

for minimum levels of liquidity, 

concentration, and pricing transparency 

for index components.26 In addition, the 

Commission noted that the generic 

listing standards for ETFs based on 

global or international indexes applied 

in conjunction with the other applicable 

listing requirements would ‘‘permit the 

listing only of ETFs that are sufficiently 

broad-based in scope to minimize 

potential manipulation . . . [and] are 

designed to preclude ETFs from 

becoming surrogates for trading in 

unregistered securities.’’ 27

MIAX now seeks to establish parallel 

listing standards for options. The 

Commission believes that it is 

consistent with the Act for the Exchange 

to list and trade options that overlie 

ETFs, provided such ETFs are listed 

pursuant to generic listing standards on 

equities exchanges for portfolio 

depositary receipts and index fund 

shares based on international or global 

indexes under which a CSSA with a 

foreign market is not required.28 All of 

the other listing criteria under MIAX’s 

rules would continue to apply to any 

such options. In addition, the 

Commission notes that the requirement 

for MIAX to obtain a CSSA will 

continue to apply to other products that 

do not fit this limited exception. The 

Commission believes that the proposed 

rule change should facilitate listing and 

trading of additional investment options 

for market participants seeking efficient 

trading and hedging vehicles and 

thereby, benefit investors by providing 

them with valuable risk management 

tools. 

IV. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,29 that the 

proposed rule change (File No. SR– 

MIAX–2015–04) be, and hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–06285 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–4. 

SEC File No. 270–347, OMB Control No. 

3235–0393. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(Commission) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

existing collection of information 

provided for in Rule 15g–4—Disclosure 

of compensation to brokers or dealers 

(17 CRF 240.15g–4) under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.). 

Rule 15g–4 requires brokers and 

dealers effecting transactions in penny 

stocks for or with customers to disclose 

the amount of compensation received by 

the broker-dealer in connection with the 

transaction. The purpose of the rule is 

to increase the level of disclosure to 

investors concerning penny stocks 


Rmajette on DSK2VPTVN1PROD with NOTICES
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. 


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