Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18471 

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

2 17 CFR 240.19b–4. 

3When applied to a market maker, sometimes 

referred to as a ‘‘maker participant identifier.’’ 

4See Securities Exchange Act Release No. 73705 

(December 1, 2015), 79 FR 72221 (December 5, 

2014)(SR–NASDAQ–2014–118). 

5 15 U.S.C. 78f. 

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

7The Exchange believes that the New York Stock 

Exchange (‘‘NYSE’’) Trading License Fee is 

analogous to membership fees of NASDAQ as they 

both provide access to the trading facilities of their 

respective exchanges. In this regard, NYSE assesses 

an annual fee of $50,000 for the first license held 

by a member organization, and $15,000 for each 

additional license. See https://www.nyse.com/

publicdocs/nyse/markets/nyse/NYSE_Price_

List.pdf. By contrast, NASDAQ would assess the 

proposed monthly fee of $550 per MPID ($6,600 

annually), an annual membership fee of $3,000, and 

a monthly trading rights fee of $1,000 ($12,000 

annually). See NASDAQ Rule 7001(a). 

8 15 U.S.C. 78f(b)(8). 

Please direct your written comments 

to 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. 

Dated: March 31, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07754 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74629; File No. SR– 

NASDAQ–2015–030] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7001(c) 

April 1, 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 26, 

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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify 

NASDAQ Rule 7001(c) concerning 

market maker participant identifier 3

(‘‘MPID’’) fees. The Exchange proposes 

to implement the proposed rule change 

on April 1, 2015. 

The text of the proposed rule change 

is available at http://nasdaq.cchwall

street.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 increase the 

fee assessed under Rule 7001(c) for 

MPIDs. MPIDs are special alphabetical 

identifiers assigned to certain brokerdealers to identify the firms’ transaction 

and quoting activity. NASDAQ 

administers the assignment of MPIDs, 

which may be requested by a brokerdealer for use on NASDAQ systems, 

reporting to the Financial Industry 

Regulatory Authority (‘‘FINRA’’), or a 

combination of the two. NASDAQ 

member firms must subscribe to at least 

one MPID upon gaining NASDAQ 

membership, but may also request 

additional MPIDs. Member firms are not 

assessed a fee for an MPID used 

exclusively for reporting information to 

facilities of FINRA, such as the FINRA/ 

NASDAQ Trade Reporting Facility. 

In December 2014, NASDAQ 

modified how the fee under Rule 

7001(c) is assessed by reducing the fee, 

but applying the fee to all MPIDs 

subscribed.4 The rule had previously 

provided that the first MPID subscribed 

was available at no cost. In making the 

change, the Exchange more closely 

aligned the fee assessed with the benefit 

provided and the costs incurred in 

offering an MPID, which includes 

regulatory oversight associated with 

each MPID. The Exchange is now 

proposing to modestly increase the fee 

assessed for subscription to an MPID 

from $500 to $550 per month. 

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 NASDAQ operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

NASDAQ believes that the proposed 

change is reasonable because it has 

reviewed the impact of the prior change 

to the fee and is now proposing to 

modestly increase the fee to ensure that 

NASDAQ is able to realize a reasonable 

profit in addition to covering costs. The 

Exchange believes that it is reasonable 

to adjust fees from time to time so that 

it can continue to make a profit on the 

products and services it offers. Ensuring 

that its products and services provide 

the Exchange with a profit allows it 

continue to offer and enhance such 

products and services, such as MPIDs. 

Moreover, the Exchange notes that its 

membership fees will continue to 

remain substantially lower than the 

analogous fees assessed by the New 

York Stock Exchange for membership.7

The Exchange believes that the 

proposed change is both an equitable 

allocation and is not designed to permit 

unfair discrimination between member 

firms because the fee is applied to all 

member firms equally based on the 

number of MPIDs subscribed. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ 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.8

NASDAQ does not believe that the 

proposed rule change places an 

unnecessary burden on competition 

because it is a modest fee increase that 

will allow NASDAQ to realize a 

reasonable profit in addition to covering 

costs. As noted above, NASDAQ’s 

membership fees remain substantially 

lower than the analogous fees of the 

NYSE, and membership fees are subject 

to competition from other exchanges. 

Accordingly, if the changes proposed 

herein are unattractive to market 

participants, it is likely that NASDAQ 

will experience a decline in 

membership and/or order flow as a 

result. 


tkelley on DSK4VPTVN1PROD with NOTICES
18472 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f). 11 17 CFR 200.30–3(a)(12). 

1The Securities Act requires the delivery of 

prospectuses to investors who buy securities from 

an issuer or from underwriters or dealers who 

participate in a registered distribution of securities. 

See Securities Act sections 2(a)(10), 4(1), 4(3), 5(b) 

[15 U.S.C. 77b(a)(10), 77d(1), 77d(3), 77e(b); see 

also rule 174 under the Securities Act (17 CFR 

230.174) (regarding the prospectus delivery 

obligation of dealers); rule 15c2–8 under the 

Securities Exchange Act of 1934 (17 CFR 240.15c2– 

8) (prospectus delivery obligations of brokers and 

dealers). 

2Rule 154 permits the householding of 

prospectuses that are delivered electronically to 

investors only if delivery is made to a shared 

electronic address and the investors give written 

consent to householding. Implied consent is not 

permitted in such a situation. See rule 154(b)(4). 

3See Rule 154(c). 

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) 

of the Act,9 and paragraph (f) 10 of Rule 

19b–4, 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. 

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–2015–030 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–2015–030. 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–2015–030, and should be 

submitted on or before April 27, 2015. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.11

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07883 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies 

Available From: Securities and 

Exchange Commission, Office of FOIA 

Services, 100 F Street NE., Washington, 

DC 20549–2736. 

Extension: Rule 154; SEC File No. 

270–438, OMB Control No. 3235–0495. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520), the Securities 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

The federal securities laws generally 

prohibit an issuer, underwriter, or 

dealer from delivering a security for sale 

unless a prospectus meeting certain 

requirements accompanies or precedes 

the security. Rule 154 (17 CFR 230.154) 

under the Securities Act of 1933 (15 

U.S.C. 77a) (the ‘‘Securities Act’’) 

permits, under certain circumstances, 

delivery of a single prospectus to 

investors who purchase securities from 

the same issuer and share the same 

address (‘‘householding’’) to satisfy the 

applicable prospectus delivery 

requirements.1 The purpose of rule 154 

is to reduce the amount of duplicative 

prospectuses delivered to investors 

sharing the same address. 

Under rule 154, a prospectus is 

considered delivered to all investors at 

a shared address, for purposes of the 

federal securities laws, if the person 

relying on the rule delivers the 

prospectus to the shared address, 

addresses the prospectus to the 

investors as a group or to each of the 

investors individually, and the investors 

consent to the delivery of a single 

prospectus. The rule applies to 

prospectuses and prospectus 

supplements. Currently, the rule 

permits householding of all 

prospectuses by an issuer, underwriter, 

or dealer relying on the rule if, in 

addition to the other conditions set forth 

in the rule, the issuer, underwriter, or 

dealer has obtained from each investor 

written or implied consent to 

householding.2 The rule requires 

issuers, underwriters, or dealers that 

wish to household prospectuses with 

implied consent to send a notice to each 

investor stating that the investors in the 

household will receive one prospectus 

in the future unless the investors 

provide contrary instructions. In 

addition, at least once a year, issuers, 

underwriters, or dealers relying on rule 

154 for the householding of 

prospectuses relating to open-end 

management investment companies that 

are registered under the Investment 

Company Act of 1940 (‘‘mutual funds’’) 

must explain to investors who have 

provided written or implied consent 

how they can revoke their consent.3

Preparing and sending the notice and 

the annual explanation of the right to 

revoke are collections of information. 

The rule allows issuers, underwriters, 

or dealers to household prospectuses if 

certain conditions are met. Among the 

conditions with which a person relying 

on the rule must comply are providing 

notice to each investor that only one 

prospectus will be sent to the household 


tkelley on DSK4VPTVN1PROD with NOTICES