18450 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 

2This estimate is based on the following 

calculation: 702 repurchases × 2.5 hours per 

repurchase = 1755 hours. 

3The $334/hour figure for a compliance attorney 

is from SIFMA’s Management & Professional 

Earnings in the Securities Industry 2013, modified 

by Commission staff to account for an 1800-hour 

work-year and multiplied by 5.35 to account for 

bonuses, firm size, employee benefits and overhead. 

4The $64/hour figure for a compliance clerk is 

from SIFMA’s Office Salaries in the Securities 

Industry 2013, modified by Commission staff to 

account for an 1800-hour work-year and multiplied 

by 2.93 to account for bonuses, firm size, employee 

benefits and overhead. 

5This estimate is based on the following 

calculation: 702 repurchases × $295 per repurchase 

= $207,090. 

6 In addition, Item 9 of Form N–CSR requires 

closed-end funds to disclose information similar to 

the information that was required in Form N–23C– 

1, which was discontinued in 2004. 

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

2 17 CFR 240.19b–4. 

3The Order Entry Port Fee is a connectivity fee 

in connection with routing orders to the Exchange 

via an external order entry port. NOM Participants 

access the Exchange’s network through order entry 

ports. A NOM Participant may have more than one 

order entry port. 

4CTI offers real-time clearing trade updates. A 

real-time clearing trade update is a message that is 

sent to a member after an execution has occurred 

and contains trade details. The message containing 

the trade details is also simultaneously sent to The 

Options Clearing Corporation. The trade messages 

are routed to a member’s connection containing 

certain information. The administrative and market 

event messages include, but are not limited to: 

System event messages to communicate 

operational-related events; options directory 

messages to relay basic option symbol and contract 

information for options traded on the Exchange; 

complex strategy messages to relay information for 

those strategies traded on the Exchange; trading 

action messages to inform market participants when 

a specific option or strategy is halted or released for 

trading on the Exchange; and an indicator which 

distinguishes electronic and non-electronically 

delivered orders. 

5 ITTO is a data feed that provides quotation 

information for individual orders on the NOM book, 

last sale information for trades executed on NOM, 

and Order Imbalance Information as set forth in 

NOM Rules Chapter VI, Section 8. ITTO is the 

options equivalent of the NASDAQ TotalView/

ITCH data feed that NASDAQ offers under 

NASDAQ Rule 7023 with respect to equities traded 

on NASDAQ. As with TotalView, members use 

ITTO to ‘‘build’’ their view of the NOM book by 

adding individual orders that appear on the feed, 

and subtracting individual orders that are executed. 

See Chapter VI, Section 1 at subsection (a)(3)(A). 

6BONOSM is a data feed that provides the NOM 

Best Bid and Offer (‘‘NOM NBBO’’) and last sale 

information for trades executed on NOM. The NOM 

NBBO and last sale information are identical to the 

information that NOM sends to the Options Price 

Regulatory Authority (‘‘OPRA’’) and which OPRA 

disseminates via the consolidated data feed for 

options. BONO is the options equivalent of the 

NASDAQ Basic data feed offered for equities under 

NASDAQ Rule 7047. See Chapter VI, Section 1 at 

subsection (a)(3)(B). 

respect to each repurchase, each fund 

spends 2.5 hours to comply with the 

rule’s written confirmation, asset 

coverage disclosure and six month 

notice requirements. Thus, Commission 

staff estimates the total annual 

respondent reporting burden is 1755 

hours.2 Commission staff further 

estimates that the cost of the hourly 

burden per repurchase is $295 (one half 

hour of a compliance attorney’s time at 

$334 per hour,3 and two hours of 

clerical time at $64 per hour 4). The total 

annual cost for all funds is estimated to 

be $207,090.5

In addition, the fund must file with 

the Commission a copy of any written 

solicitation to purchase securities given 

by or on behalf of the fund to 10 or more 

persons. The copy must be filed as an 

exhibit to Form N–CSR (17 CFR 249.331 

and 274.128).6 The burden associated 

with filing Form N–CSR is addressed in 

the submission related to that form. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules and forms. 

Complying with the collection of 

information requirements of the rule is 

mandatory. The filings that the rule 

requires to be made with the 

Commission are available to the public. 

An agency may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a currently valid control 

number. 

The public may view the 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 send an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: March 31, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07753 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74616; File No. SR– 

NASDAQ–2015–027] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

NASDAQ Options Market Fees and 

Rebates 

March 31, 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 25, 

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, II, and III, below, which Items 

have been prepared by NASDAQ. 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 proposes to amend the 

manner in which the Exchange assesses 

Port Fees which are located in Chapter 

XV, entitled ‘‘Options Pricing,’’ which 

governs pricing for NASDAQ members 

using the NASDAQ Options Market 

(‘‘NOM’’), NASDAQ’s facility for 

executing and routing standardized 

equity and index options. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated the amendments become 

operative on April 1, 2015. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.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. 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 Exchange proposes to increase 

Port Fees for the following ports from 

$600.00 to $650.00 per port, per month, 

per mnemonic: Order Entry Port,3 CTI 

Port,4 ITTO Port,5 BONO Port,6 Order 


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7The DROP interface provides real time 

information regarding orders sent to NOM and 

executions that occurred on NOM. The DROP 

interface is not a trading interface and does not 

accept order messages. 

8The OTTO DROP data feed provides real-time 

information regarding orders entered through OTTO 

and the execution of those orders. The OTTO DROP 

data feed is not a trading interface and does not 

accept order messages. 

9OTTO provides a method for subscribers to send 

orders and receive status updates on those orders. 

OTTO accepts limit orders from system subscribers, 

and if there is a matching order, the orders will 

execute. Non-matching orders are added to the limit 

order book, a database of available limit orders, 

where they are matched in price-time priority. 

10SQF ports are ports that receive inbound quotes 

at any time within that month. The SQF Port allows 

a NOM Participant to access information such as 

execution reports and other relevant data through 

a single feed. For example, this data would show 

which symbols are trading on NOM and the current 

state of an options symbol (i.e., open for trading, 

trading, halted or closed). Auction notifications and 

execution reports are also available. NOM Market 

Makers rely on data available through the SQF Port 

to provide them the necessary information to 

perform market making activities. 

11A mnemonic is a unique identifier consisting 

of a four character alpha code. 

12Account numbers are assigned by the Exchange 

and associated with particular NOM Participants. 

13 15 U.S.C. 78f. 

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

15Miami International Securities Exchange LLC 

(‘‘MIAX’’) assesses ports fees that range in price up 

to $1,000 depending on connectivity levels. See 

MIAX’s Fee Schedule. ISE Gemini, LLC (‘‘ISE 

Gemini’’) assesses port fees that range from $750– 

$15,000 depending on connectivity levels. See ISE 

Gemini’s Fee Schedule. Finally, C2 Options 

Exchange, Incorporated (‘‘C2’’) assesses port fees 

that range from $500–$1,000 depending on 

connectivity levels. See C2’s Fee Schedule. See also 

NASDAQ OMX PHLX LLC’s (‘‘Phlx’’) Pricing 

Schedule. Phlx assesses higher fees which range 

from $2,500 to $15,000 for its Active SQF Port 

which is utilized by Phlx market makers as 

compared to $550 for Order Entry Ports. 16 Id. 

Entry DROP Port Fees 7 and OTTO Drop 

Ports.8 The OTTO Port 9 will be 

increased from $600.00 to $750.00 per 

port, per month, per mnemonic, and the 

SQF Port 10 will be increased from 

$600.00 to $750.00 per port, per month. 

ITTO and BONO Port fees will continue 

to be assessed to non-NOM Participants 

and NOM Participants. 

Each NOM Participant is assigned a 

market participant identifier or 

‘‘mnemonic’’ 11 and in some cases, 

certain NOM Participants request 

multiple mnemonics for purposes of 

accounting for trading activity. These 

mnemonics identify users at a particular 

NOM Participant. The Exchange bills its 

port fees based on the number of 

mnemonics configured for each port. By 

way of example, if a NOM Participant, 

ABC, requested 2 ports from the 

Exchange and further requested that 

each port be configured to be accessed 

by 4 mnemonics or in some cases 

account numbers,12 the NOM 

Participant, today, would be billed for 8 

ports at the rate of $600 per port for that 

month. All billing is captured at the 

Participant level. NOM Participants may 

choose to have multiple mnemonics or 

in some case multiple account numbers 

for the convenience of conducting their 

business, however only one mnemonic 

and one account number is required to 

conduct business on NOM. The 

aforementioned will not apply to SQF 

ports, which are not billed by 

mnemonic. 

The Exchange is proposing to increase 

OTTO and SQF Ports from $600.00 to 

$750.00, per port, per month, per 

mnemonic for the OTTO Port and per 

port, per month for the SQF port. All 

other port fees (Order Entry Port, CTI 

Port, ITTO Port, BONO Port, Order 

Entry DROP Port and OTTO Drop Ports) 

will increase from $600.00 to $650.00 

per port, per month, per mnemonic. 

NOM Market Makers utilize OTTO and 

SQF ports for their market making 

business, which ports require a greater 

throughput as compared to the other 

ports mentioned herein. The Exchange 

expends greater resources to provide the 

OTTO and SQF ports, which is the 

reason for the increased fee for these 

ports as compared to other ports. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,13 in 

general, and with Section 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 or 

system which NASDAQ operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that increasing 

the Order Entry Port, CTI Port, ITTO 

Port, BONO Port, Order Entry DROP 

Port and OTTO DROP Port fees from 

$600 to $650 per port, per month, per 

mnemonic is reasonable because it 

would allow the Exchange to keep pace 

with increasing technology costs. The 

increased Port Fees reflect the increased 

costs that the Exchange bears with 

respect to maintaining ports. The Port 

Fees are reasonable because they enable 

the Exchange to offset, in part, its 

connectivity costs associated with 

making such ports available, including 

costs based on gateway software and 

hardware enhancements and resources 

dedicated to gateway development, 

quality assurance, and support. The 

Exchange’s Port Fees are in line with 

costs for ports at other options 

exchanges.15

The Exchange believes that increasing 

the Order Entry Ports, CTI Ports, ITTO 

Ports, BONO Ports, Order Entry DROP 

Port and OTTO DROP Port fees from 

$600 to $650 per port, per month, per 

mnemonic is equitable and not unfairly 

discriminatory because the Exchange 

assesses the same fees for all ports to all 

NOM participants. 

The Exchange believes that increasing 

the OTTO Port and SQF Port Fees from 

$600 to $750 is reasonable because it 

would allow the Exchange to keep pace 

with increasing technology costs. NOM 

Market Makers utilize the OTTO and 

SQF ports, which ports require a greater 

throughput as compared to the other 

ports mentioned herein. The Exchange 

expends greater resources to provide the 

OTTO and SQF ports, which is the 

reason for the increased fee as compared 

to other ports. The increased Port Fees 

reflect the increased costs that the 

Exchange bears with respect to 

maintaining ports. The Port Fees are 

reasonable because they enable the 

Exchange to offset, in part, its 

connectivity costs associated with 

making such NOM Market Maker ports 

available, including costs based on 

gateway software and hardware 

enhancements and resources dedicated 

to gateway development, quality 

assurance, and support. The Exchange’s 

Port Fees are in line with costs for ports 

at other options exchanges.16

The Exchange believes that increasing 

the OTTO Port and SQF Port Fees from 

$600 to $750 is equitable and not 

unfairly discriminatory because the 

Exchange assesses the same fees for 

these ports which are utilized by NOM 

Market Makers for any NOM market 

participant desiring these ports. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The Exchange 

believes the proposed fee change is 

reasonably designed to be fair and 

equitable, and therefore, will not unduly 

burden any particular group of market 

participants trading on the Exchange. 

The Exchange’s proposal to increase all 

port fees for all NOM Participants with 

respect to the Order Entry Port, CTI 

Port, ITTO Port, BONO Port, Order 

Entry DROP Port and OTTO DROP Port 

fees from $600 to $650 does not create 

an undue burden on competition. The 

proposed fees are designed to ensure a 

fair and reasonable use of Exchange 

resources by allowing the Exchange to 


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17See note 15. 

18 15 U.S.C. 78s(b)(3)(A)(ii). 19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

recoup for certain of its connectivity 

costs, while continuing to offer 

competitive rates to NOM Participants. 

With respect to the OTTO Port and 

SQF Port Fees, the increase in the port 

fees from $600 to $750 is greater. These 

ports are utilized by NOM Market 

Makers in connection with marking 

markets. NOM Market Makers utilize 

the OTTO and SQF ports, which ports 

require a greater throughput as 

compared to the other ports mentioned 

herein. The Exchange expends greater 

resources to provide the OTTO and SQF 

ports, which is the reason for the 

increased fee as compared to other 

ports. The increased Port Fees reflect 

the increased costs that the Exchange 

bears with respect to maintaining ports. 

The Exchange does not believe these fee 

increases create an undue burden on 

competition. Moreover, the Exchange 

believes that its fee increases are 

competitive with similar fees at other 

options exchanges.17

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.18 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–2015–027 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–2015–027. 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 

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. 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–2015–027 and should be 

submitted on or before April 27, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07749 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74618; File No. SR–Phlx– 

2015–29] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Proposed Rule Change To Amend and 

Restate Certain Rules That Govern the 

NASDAQ OMX PSX 

March 31, 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 20, 

2015, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

PHLX proposes to amend and restate 

certain rules that govern NASDAQ OMX 

PSX (‘‘PSX’’) in order to provide a 

clearer and more detailed description of 

certain aspects of its functionality. The 

text of the proposed rule change is 

available at nasdaq.cchwallstreet.com, 

at the Exchange’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, 

Phlx 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. Phlx 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 Exchange proposes to amend and 

restate certain Exchange rules that 

govern PSX in order to provide a clearer 

and more detailed description of certain 


tkelley on DSK4VPTVN1PROD with NOTICES