21778 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 

18 15 U.S.C. 78s(b)(3)(A). 

19 17 CFR 240.19b–4(f)(6)(iii). As required under 

Rule 19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of 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. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22See supra note 14 (noting that NYSE BQT and 

NLS Plus carry consolidated volume for all listed 

equities). 

23For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 18 and Rule 19b–4(f)(6)(iii) 

thereunder.19

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 20 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 21

permits the Commission to 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 the proposal may 

become operative immediately upon 

filing. The Exchange believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it would allow the Exchange to 

timely offer investors a new option for 

receiving consolidated volume 

information. The Exchange further notes 

that other exchanges currently offer 

similar data products that include 

consolidated volume.22 The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 

operative delay and designates the 

proposed rule change operative upon 

filing.23

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– 

BATS–2015–29 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–2015–29. 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 

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– 

2015–29, and should be submitted on or 

before May 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08942 Filed 4–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74725; File No. SR– 

NASDAQ–2015–032] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

NASDAQ Rules 7014 and 7018 

April 14, 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 April 1, 

2015, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘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 

NASDAQ is proposing changes to the 

Qualified Market Maker (‘‘QMM’’) 

Incentive Program under Rule 7014, and 

the qualification requirements for 

certain fees relating to Market-on-Close 

and/or Limit-on-Close orders under 

Rule 7018(a). 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 21779 

3Thus, the QMM designation does not by itself 

impose a two-sided quotation obligation or convey 

any of the benefits associated with being a 

registered market maker. 

4For purposes of calculating Consolidated 

Volume and the extent of a member’s trading 

activity, expressed as a percentage of or ratio to 

Consolidated Volume, the date of the annual 

reconstitution of the Russell Investments Indexes 

shall be excluded from both total Consolidated 

Volume and the member’s trading activity. 

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 Rule 

7014(d), which provides the 

qualification criteria for designation as a 

Qualified Market Maker (‘‘QMM’’) 

under the QMM incentive program, to 

limit qualification to registered 

NASDAQ market makers (‘‘Market 

Makers’’). Currently, a QMM may be, 

but is not required to be, a Market 

Maker in any security.3 The QMM 

program provides incentives to a 

member firm to make a significant 

contribution to market quality by 

providing liquidity at the NBBO in a 

large number of stocks for a significant 

portion of the day. In addition, the 

member must avoid imposing the 

burdens on NASDAQ and its market 

participants that may be associated with 

excessive rates of entry of orders away 

from the inside and/or order 

cancellation. The Exchange notes that 

the program, to date, has been used very 

little by member firms that are not 

Market Makers, and only Market Makers 

use the program at this time. 

Accordingly, the Exchange is proposing 

to amend Rule 7014(d)(3) to limit the 

program to Market Makers. The 

Exchange is also deleting the current 

qualification criteria under Rule 

7014(d)(3) that requires a member firm 

to have liquidity provided in all 

securities through one of its NASDAQ 

Market Center MPIDs that represent 

0.30% of Consolidated Volume during 

the month. The Exchange notes that the 

Consolidated Volume requirement is 

superfluous given that it is adopting 

Consolidated Volume eligibility criteria 

for the credits under the QMM program, 

and is adding an absolute Consolidated 

Volume eligibility criteria to receive the 

reduced removal rate under the 

program, as discussed below. 

NASDAQ is amending Rule 7014(e), 

which sets forth the criteria required to 

receive the benefits of the program, to 

move the two credits provided under 

subparagraphs (1) and (2) provided for 

executions in securities listed on NYSE 

(‘‘Tape A’’) and securities listed on 

exchanges other than NASDAQ and 

NYSE (‘‘Tape B’’) to a table format 

directly under Rule 7014(e). NASDAQ is 

also modifying the criteria a QMM must 

meet to receive the two tiers of credits 

under the rule. Currently, NASDAQ 

provides a rebate of $0.0002 per share 

executed (in addition to other credits 

received under Rule 7018(a)) 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; (D) were for 

securities listed on NYSE or securities 

listed on exchanges other than 

NASDAQ and NYSE and (E) that no 

additional rebate will be issued with 

respect to Designated Retail Orders (as 

defined in Rule 7018). NASDAQ is 

proposing to replace these requirements 

with a new requirement that a QMM 

execute shares of liquidity provided in 

all securities through one or more of its 

NASDAQ Market Center MPIDs that 

represent greater than 0.90% of 

Consolidated Volume during the month. 

The Exchange is replacing the current 

requirements, which provide the QMM 

with an incentive to provide displayed 

liquidity that sets the NBBO on 

NASDAQ, with a new requirement to 

provide a significant level Consolidated 

Volume in all securities through one or 

more of its MPIDs. Consolidated 

Volume is defined by Rule 7018(a) as 

the total consolidated volume reported 

to all consolidated transaction reporting 

plans by all exchanges and trade 

reporting facilities during a month in 

equity securities, excluding executed 

orders with a size of less than one round 

lot.4 The Exchange believes that tying 

the rebate to the provision of greater 

overall volume will provide an 

increased impact to improving market 

quality over the current NBBO-based 

criteria. 

Similarly, the Exchange is proposing 

to modify the requirements to receive a 

rebate of $0.0001 per share executed 

under Rule 7014(e)(2). Currently, a 

QMM will receive the rebate 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 that are entered 

through a QMM MPID in Tape A or B 

securities. The Exchange is proposing to 

now require that a QMM execute shares 

of liquidity provided in all securities 

through one or more of its Nasdaq 

Market Center MPIDs that represent 

from 0.70% up to and including 0.90% 

of Consolidated Volume during the 

month. The Exchange believes that tying 

the rebate to the provision of greater 

overall volume will provide an 

increased impact to improving market 

quality over the current requirement 

that the orders are displayed and 

provide liquidity. 

As a consequence of moving and 

modifying the criteria of Rules 

7014(e)(1) and (2), NASDAQ is moving 

certain rule text concerning the type of 

securities that the rule applies to, and 

certain exclusions from the program, 

from subparagraphs (1) and (2) to the 

first paragraph of Rule 7014(e). As noted 

above, NASDAQ is placing the two 

credits provided under subparagraphs 

(1) and (2) in a table format and, 

consequently, is deleting those 

subparagraphs. NASDAQ is moving 

language, which is repeated in both 

subparagraphs, that notes the credits 

provided apply to securities priced at $1 

or more per share to the new table under 

Rule 7014(e) where the two credits are 

now located. The Exchange is also 

moving text that concerns exclusion of 

Designated Retail Orders from 

subparagraphs (1) and (2) to directly 

above the new table under Rule 7014(e). 

NASDAQ is proposing to amend the 

criteria under Rule 7014(e)(3) required 

to receive the reduced remove rate fee 

of $0.00295 per share executed under 

the rule in Tape A and B securities 

priced at $1 or more for shares executed 

via its QMM MPID. Currently, NASDAQ 

will charge a fee of $0.0030 per share 

executed for orders in securities listed 

on NASDAQ (‘‘Tape C’’) priced at $1 or 

more per share that access liquidity on 

the NASDAQ Market Center and that are 

entered through a QMM MPID, and 

charges a fee of $0.00295 per share 

executed for orders in Tape A or B 

securities priced at $1 or more per share 

that access liquidity on the NASDAQ 

Market Center and that are entered 

through a QMM MPID; provided, 

however, that after the first month in 

which an MPID becomes a QMM MPID, 

the QMM’s volume of liquidity added, 

provided, and/or routed through the 

QMM MPID during the month (as a 

percentage of Consolidated Volume) 

must not be less than 0.05% lower than 

the volume of liquidity added, 

provided, and/or routed through such 

QMM MPID during the first month in 

which the MPID qualified as a QMM 

MPID (as a percentage of Consolidated 

Volume). NASDAQ is proposing to 

eliminate the current Consolidated 

Volume requirement, which relates to 

mstockstill on DSK4VPTVN1PROD with NOTICES

21780 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 

5 15 U.S.C. 78f. 

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

the first month in which an MPID 

qualified as a QMM MPID, and now 

require that the QMM executes shares of 

liquidity provided in all securities 

through one or more of its NASDAQ 

Market Center MPIDs of 0.80% or more 

of Consolidated Volume during the 

month. The Exchange believes that the 

changes will tie receipt of the reduced 

removal fee in Tape A and B securities 

to a more meaningful measure of 

market-improvement. Decoupling the 

measure from the QMM’s first month 

QMM Consolidated Volume will ensure 

that all QMMs meet a minimum 

standard that is uniform. Increasing the 

Consolidated Volume required to 

receive the fee will provide incentive to 

QMMs to provide greater marketimproving participation in return for the 

benefit. 

The Exchange is also proposing to 

increase the level of Consolidated 

Volume that a member firm must have 

in Market-on-Close and/or Limit-onClose orders during the month in order 

to qualify for fees to remove liquidity in 

securities executed at or above $1 under 

Rule 7018(a)(1), (2) and (3). Currently, 

NASDAQ assesses a fee for member 

firms that qualify based on their Marketon-Close and/or Limit-on-Close order 

participation in the Closing Cross of 

$0.0030 per share executed in Tape C 

securities under Rule 7018(a)(1), and 

fees of $0.00295 per share executed in 

Tape A and B securities under Rules 

7018(a)(2) and (3), respectively. To 

qualify under each of the rules, a 

member firm must have Market-onClose and/or Limit-on-Close orders 

executed in the NASDAQ Closing Cross, 

entered through a single NASDAQ 

Market Center market participant 

identifier, that represent more than 

0.06% of Consolidated Volume during 

the month. The Exchange is proposing 

to increase the minimum level of 

Consolidated Volume required under 

each of the rules to 0.15%. 

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 

changes to the QMM program in 

NASDAQ Rule 7014(d)(3) is [sic] 

reasonable and will not discriminate 

unfairly because they refine the program 

to focus on market participants who 

currently use the program. As discussed 

above, Market Makers have provided the 

vast majority of participation in the 

program and are currently the only 

market participant utilizing the 

program. Accordingly, restricting the 

program to Market Makers will not 

result in a material change in who 

participates in the program. 

Additionally, Market Makers have both 

obligations to the market and regulatory 

requirements that normally do not apply 

to other market participants. As such, 

the Exchange believes that providing 

additional incentives to Market Makers 

to provide liquidity for the benefit of all 

investors and other market participants 

is reasonable and not unfairly 

discriminatory. The proposed 

modifications to the QMM program 

recognize the benefits of increased 

Market Maker participation and the 

Exchange believes that this proposal 

will improve displayed liquidity, and 

thus the execution quality overall on the 

Exchange. Moreover, the Exchange 

believes that eliminating the current 

Consolidated Volume requirement is 

reasonable and not unfairly 

discriminatory because it will become 

superfluous in light of additional 

requirements based on Consolidated 

Volume that are also being proposed 

herein. For the same reasons noted 

above, limiting eligibility in the program 

to Market Makers and eliminating the 

Consolidated Volume requirement 

under Rule 7014(d)(3) is an equitable 

allocation of the fees and credits 

provided by the program. In this regard, 

no current participants in the program 

will be excluded from being eligible to 

participate after the proposed change is 

effective, and applying the current 

Consolidated Volume criteria will have 

no significance in light of the proposed 

changes to the specific fees and credits 

under the program. 

The Exchange believes that the 

proposed changes to Rule 7014(e) are 

reasonable and not unfairly 

discriminatory because they impose 

stricter requirements on Market Makers 

to receive the benefits of the program, 

which will be applied uniformly to all 

Market Makers that are eligible to 

participate in the QMM program. With 

regard to the $0.0002 rebate provided in 

Tape A and B securities, the Exchange 

is eliminating the NBBO-based criteria 

and tying the rebate to greater overall 

volume, which the Exchange believes 

will provide a greater impact to 

improving overall market quality 

because the economic benefits provided 

to the Market Maker are more certain 

and therefore provide the Market Maker 

a means to more aggressively provide 

displayed liquidity to the Exchange for 

the benefit of all market participants. In 

this regard, the Exchange notes that 

Market Makers must provide more than 

0.90% of Consolidated Volume during 

the month, which is a significant level 

participation in the market. Similarly, 

NASDAQ is proposing a significant 

level of Consolidated Volume to receive 

the $0.0001 rebate under the rule, which 

currently only requires that the QMM 

participant provide displayed liquidity. 

The Exchange believes that it is 

reasonable and not unfairly 

discriminatory to impose stricter criteria 

designed to improve market quality in 

return for the credit NASDAQ elects to 

provide. NASDAQ also believes that the 

proposed changes to the eligibility 

requirements for the reduced removal 

fee in Tape A and B securities of 

$0.00295 per share executed are 

reasonable and not unfairly 

discriminatory because they increase 

the level of Consolidated Volume 

required, which will be an absolute 

requirement and not tied to historical 

levels of Consolidated Volume, thereby 

increasing the level of market 

improvement necessary to receive the 

reduced rate. As an absolute 

requirement, the Consolidated Volume 

requirement will apply uniformly to all 

Market Makers eligible to participate in 

the program. The Exchange believes that 

the proposed changes to the eligibility 

requirements under Rule 7014(e) are an 

equitable allocation because NASDAQ 

will provide the same rebates and fees 

to all Market Makers that qualify under 

the rule. 

Lastly, NASDAQ notes that Market 

Makers serve an important role on the 

Exchange with regard to order 

interaction and provide continuous, 

passive liquidity in the marketplace. 

Additionally, Market Makers incur costs 

unlike the majority of other market 

participants including, but not limited 

to, their own infrastructure and other 

technology costs associated with market 

making activities. Consequently, the 

proposed differentiation between 

Market Makers and other market 

participants recognizes the differing 

contributions made to the quality of the 

market on the Exchange by Market 

Makers and the heightened regulatory 

requirements and costs associated with 

being a Market Maker. In brief, the 

Exchange believes that the proposed 

changes to the QMM program further 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 21781 

7 15 U.S.C. 78f(b)(8). 8 15 U.S.C. 78s(b)(3)(A)(ii). 

incentives registered Market Makers to 

provide liquidity improves market 

qualify [sic], furthers the price discovery 

process and benefits investors. 

The Exchange believes that the 

proposed changes to the level of 

Consolidated Volume in Market-onClose and/or Limit-on-Close order 

participation in the Closing Cross 

required to receive the fees for orders 

that remove liquidity under Rules 

7018(a)(1), (2), and (3) are reasonable 

and not unfairly discriminatory because 

they represent an increase in the level 

of market-improving Consolidated 

Volume contributed to the Closing 

Cross. NASDAQ provides discounted 

fees in Market-on-Close and/or Limiton-Close orders in Tape A and B 

securities to provide incentives to 

member firms to provide liquidity in the 

closing process. NASDAQ is increasing 

the Consolidated Volume requirement 

to better align the discounted remove 

fees with members that use the closing 

cross process more regulatory [sic] over 

alternatives and also access liquidity 

more frequently on the Exchange as 

opposed to other members. Nonetheless, 

NASDAQ believes that it is reasonable 

and not unfairly discriminatory to 

change the eligibility criteria so that it 

mirrors the eligibility criteria of the 

related fees under Rules 7018(a)(2) and 

(3). Lastly, the Exchange believes that 

the proposed changes to the rules are an 

equitable allocation of the fees because 

the fee is provided uniformly to all 

member firms that qualify for the fees 

and all member firms have an equal 

opportunity to earn the discounted fee 

for accessing liquidity. 

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.7

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 eligibility 

criteria required to receive credits and 

reduced fees under the QMM program 

do not impose a burden on competition 

because the incentive program remains 

in place, still offers economically 

advantageous credits and reduced fees, 

and is 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 to the 

QMM program 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. 

Similarly, the proposed changes to the 

eligibility criteria for remove fees under 

Rule 7018(a) based on Market-on-Close 

and/or Limit-on-Close order 

participation in the Closing Cross are 

designed to increase participation in the 

Closing Cross by setting the minimum 

level of Consolidated Volume eligibility 

criteria higher, thereby improving the 

market at the market close. To the extent 

the qualification criteria is too onerous 

or unattractive to market participants, 

NASDAQ will likely lose order flow and 

participation in the Closing Cross 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 rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.8 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–2015–032 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–2015–032. 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 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– 

NASDAQ–2015–032, and should be 

submitted on or before May 8, 2015. 

mstockstill on DSK4VPTVN1PROD with NOTICES

21782 Federal Register / Vol. 80, No. 75 / Monday, April 20, 2015 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

5See Securities Exchange Act Release No. 73918 

(December 23, 2014), 79 FR 78920 (December 31, 

2014) (File Nos. SR–EDGX–2014–25; SR–EDGA– 

2014–25; SR–BATS–2014–055; SR–BYX–2014–030) 

(Notice of Amendments No. 2 and Order Granting 

Accelerated Approval to Proposed Rule Changes, as 

Modified by Amendments Nos. 1 and 2, to Establish 

a New Market Data Product called the BATS One 

Feed) (‘‘BATS One Approval Order’’). 

6BYX’s affiliated exchanges are the BATS 

Exchange, Inc. (‘‘BZX’’), the EDGA Exchange, Inc. 

(‘‘EDGA’’), and the EDGX Exchange, Inc. (‘‘EDGX’’, 

together with EDGA, BZX, and BYX, the ‘‘BATS 

Exchanges’’). On January 23, 2014, BATS Global 

Markets, Inc. (‘‘BGMI’’), the former parent company 

of the Exchange and BZX, completed its business 

combination with Direct Edge Holdings LLC, the 

parent company of EDGA and EDGX. See Securities 

Exchange Act Release No. 71375 (January 23, 2014), 

79 FR 4771 (January 29, 2014) (SR–BATS–2013– 

059; SR–BYX–2013–039). Upon completion of the 

business combination, DE Holdings and BGMI each 

became intermediate holding companies, held 

under a single new holding company. The new 

holding company, formerly named ‘‘BATS Global 

Markets Holdings, Inc.,’’ changed its name to 

‘‘BATS Global Markets, Inc.’’ and BGMI changed its 

name to ‘‘BATS Global Markets Holdings, Inc.’’ 

7The Exchange understands that each of the 

BATS Exchanges will separately file substantially 

similar proposed rule changes with the Commission 

to implement fees for the BATS One Feed. 

8The BATS One Feed also contains optional 

functionality which enables recipients to receive 

aggregated two-sided quotations from the BATS 

Exchanges for up to five (5) price levels for all 

securities that are traded on the BATS Exchanges 

in addition to the BATS One Summary Feed 

(‘‘BATS One Premium Feed’’). For each price level 

on one of the BATS Exchanges, the BATS One 

Premium Feed includes a two-sided quote and the 

number of shares available to buy and sell at that 

particular price level. 

9See CTA Consolidated Volume Display Policy 

available at https://www.ctaplan.com (dated March 

2015). The CTA Consolidated Volume Display 

Policy requires that, ‘‘[i]f a Customer calculates the 

CTA Consolidated Volume and displays that 

alongside last sale prices or bid-asked quotes that 

are not consolidated prices or quotes under the CTA 

Plan or the CQ Plan, then the Customer must 

incorporate into its display the following statement: 

‘‘Realtime quote and/or trade prices are not sourced 

from all markets.’’ Customer must also assure that 

any person included in the redistribution chain 

starting with the Customer conspicuously places 

such a statement in any such display that it 

provides.’’ Id. 

10For a description of BYX’s RPI Program, see 

BYX Rule 11.24. See also Securities Exchange Act 

Release No. 68303 (November 27, 2012), 77 FR 

71652 (December 3, 2012) (SR–BYX–2012–019) 

(Order Granting Approval of Proposed Rule Change, 

as Modified by Amendment No. 2, to Adopt a Retail 

Price Improvement Program); Securities Exchange 

Act Release No. 67734 (August 27, 2012), 77 FR 

53242 (August 31, 2012) (SR–BYX–2012–019) 

(Notice of Filing of Proposed Rule Change to Adopt 

a Retail Price Improvement Program). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08941 Filed 4–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74723; File No. SR–BYX– 

2015–22] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Content of 

the BATS One Feed Under Rule 11.22(i) 

To Include Consolidated Volume for All 

Listed Equity Securities 

April 14, 2015. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 1, 

2015, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. 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 amend [sic] the content 

of the BATS One Feed under Rule 

11.22(i) to include consolidated volume 

for all listed equity securities. The text 

of the proposed rule change is available 

at the Exchange’s Web site at 

www.batstrading.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 parts 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 the 

content of the BATS One Feed under 

Rule 11.22(i) to include consolidated 

volume for all listed equity securities. 

The Exchange also proposes to make a 

ministerial change to Rule 11.22(i). The 

Commission recently approved a 

proposed rule change by the Exchange 

to establish a new market data product 

called the BATS One Feed.5 The BATS 

One Feed is a data feed that 

disseminates, on a real-time basis, the 

aggregate best bid and offer (‘‘BBO’’) of 

all displayed orders for securities traded 

on BYX and its affiliated exchanges 6

and for which the BATS Exchanges 

reports quotes under the Consolidated 

Tape Association (‘‘CTA’’) Plan or the 

Nasdaq/UTP Plan.7

Consolidated Volume 

The last sale information 

disseminated as part of the BATS One 

Feed includes the price, size, time of 

execution, and individual BATS 

Exchange on which the trade was 

executed. The last sale information also 

includes the cumulative number of 

shares executed on all BATS Exchanges 

for that trading day.8 The Exchange now 

proposes to expand the last sale 

information to include consolidated 

volume for all listed equity securities 

regardless of where the transaction was 

executed. The Exchange would obtain 

the consolidated volume directly from 

the securities information processors 

and then distribute in a manner 

consistent with the requirements for 

redistributing such data as set forth in 

the CTA Plan and Nasdaq UTP Plan.9

Ministerial Change 

The Exchange also proposes to delete 

from Rule 11.22(i) language indicating 

that the Retail Liquidity Identifier is 

disseminated on behalf of the Exchange, 

‘‘an affiliated exchange of the 

Exchange’’. The Retail Liquidity 

Identifier indicator message is 

disseminated via the BATS One Feed on 

behalf of the Exchange pursuant to the 

Exchange’s Retail Price Improvement 

(‘‘RPI’’) Program.10 For purposes of BYX 

Rule 11.22(i), the Exchange believes it is 

unnecessary to include the phrase ‘‘an 

affiliated exchange of the Exchange’’ 

and could lead to potential investor 

confusion. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

mstockstill on DSK4VPTVN1PROD with NOTICES