Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 100573 

24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3This proposal was initially filed on November 

12, 2024, as SR–Nasdaq–2024–069. On November 

26, 2024, SR–Nasdaq–2024, SR–Nasdaq–2024–069 

was withdrawn and replaced with the instant filing 

to provide certain additional information. 

4This proposal will adjust for inflation up to 

August 2024. Depending on inflation thereafter, 

further adjustments may, or may not, be necessary. 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSENAT–2024–32 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–NYSENAT–2024–32. 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 website (https://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 website 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. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSENAT–2024–32 and should be 

submitted on or before January 2, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29146 Filed 12–11–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101839; File No. SR– 

NASDAQ–2024–076] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Certain Fees Based on the Rate of 

Inflation 

December 6, 2024 

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 November 

26, 2024, The Nasdaq Stock Market LLC 

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

Securities and Exchange Commission 

(‘‘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 

The Exchange proposes to amend the 

Exchange’s fees based on the rate of 

inflation. 

While these amendments are effective 

upon filing, the Exchange has 

designated the proposed amendments to 

be operative on January 1, 2025. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, 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 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 purpose of the proposed rule 

change is to adjust market data fees for 

inflation, to be operative on January 1, 

2025.3

Many Nasdaq market data fees have 

not changed for years, some for over 15. 

As such, the fees have fallen 

substantially in real terms. The 

Exchange proposes to restore fees to the 

real amount intended in the original 

filings in a one-time inflationary 

adjustment. This adjustment will 

become operative in three parts: 45 

percent in 2025; 30 percent in 2026; and 

the final 25 percent in 2027. The 

Exchange believes that it is necessary to 

spread the impact of this one-time 

adjustment for past inflation to prevent 

any undue impact that execution in a 

single tranche may have on our 

customers.4

The proposed fee increases will apply 

to ten product families within Nasdaq: 

(i) Distributor Fees; (ii) Short Interest; 

(iii) Depth of Book; (iv) Distribution 

Models; (v) FilterView; (vi) Nasdaq Last 

Sale; (vii) Nasdaq Share Volume; (viii) 

Nasdaq Basic; (ix) Daily Short Volume; 

and (x) MatchView. A detailed list of fee 

adjustments is set forth below. The 

Exchange is not proposing to adjust fees 

for non-professional usage, 

administrative fees, extranet fees, or 

certain categories of Non-Display usage. 

The Exchange plans to use this 

inflationary adjustment to support 

continued investment in innovative, 

high-quality data products. 

Investments in Nasdaq Data Products 

Nasdaq has continuously invested in 

its products in the period after the 

current fees were first instituted to 

accommodate the increasing amount of 

information processed and the changes 

in technology over time. It is reasonable 

and consistent with the Act for the 

Exchange to recoup its investments, at 

least in part, by adjusting its fees. 

Continuing to operate at fees frozen in 

time impacts the Exchange’s ability to 

enhance its offerings and the interests of 

market participants and investors. 

These investments have been 

necessary in part because of significant 


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100574 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 

5These measurements compare the time 

difference between events on the matching engine 

and the time these events are published. 

6See https://fred.stlouisfed.org/series/ 

PCU51825182#0. 

7See https://www.bls.gov/ppi/overview.htm. 

8See https://www.bls.gov/ppi/overview.htm. 

9NAICS appears in table 5 of the PPI Detailed 

Report and is available at https://data.bls.gov/ 

timeseries/PCU518210518210. 

10See https://www.bls.gov/ppi/factsheets/ 

producer-price-index-for-the-data-processing-andrelated-servicesindustry-naics-518210.htm. 

11The Exchange notes that the Bureau of Labor 

Statistics uses a number of measures of inflation 

that may apply to Exchange market data. For 

example, there is also an inflation measure related 

to PPI industry data for data processing, hosting, 

and related services: Hosting, ASP, and other IT 

infrastructure provisioning services. This other 

measure has been used by other SROs in 

determining price changes and may provide an 

alternative point of reference. 

12See, e.g., Securities Exchange Act Release Nos. 

34–100004 (April 22, 2024), 89 FR 32465 (April 26, 

2024) (SR–CboeBYX–2024–012); and 34–100398 

(June 21, 2024), 89 FR 53676 (June 27, 2024) (SR– 

BOX–2024–16); Securities Exchange Act Release 

No. 100994 (September 10, 2024), 89 FR 75612 

(September 16, 2024) (SR–NYSEARCA–2024–79). 

13The Exchange rounded fees as follows: fee 

values over $999.99 were rounded to the nearest 

$10; fees between $99.99 and $999.99 were rounded 

to the nearest dollar; fees between $9.99 and $99.99 

were rounded to the nearest $0.50; fees less than 

$9.99 were rounded to the nearest $0.10. Where 

rounding would have caused the proposed fee to 

increases in the amount of information 

processed. The following message rate 

metrics for Nasdaq Basic illustrate this 

increase in throughput: 

• Peak Rate by Millisecond: up 

approximately 141% 

• Average Rate per Millisecond: up 

approximately 89% 

• Peak Rate per Second: up 

approximately 25% 

• Average Rate per Second: up 

approximately 23% 

• Peak Total Messages: up 

approximately 209% 

• Average Total Messages: up 

approximately 121% 

• Average Daily Volume: up 

approximately 82% 

• Maximum Message Count: up 

approximately 209% 

With this increase in message traffic, 

the Exchange expended significant 

resources to improve its market data 

products to meet customer expectations, 

including continued investment in all 

aspects of the technology ecosystem 

(e.g., software, hardware, and network). 

During the period between 2018 and 

2023, advancements in system 

performance as measured by latency not 

only accommodated the high message 

traffic volumes but stayed well ahead of 

it. The following latency metrics 5

illustrate the increase in message 

processing speed, despite the significant 

message traffic growth: 

• Median: down approximately 22% 

• Average: down approximately 28% 

• Max: down approximately 29% 

The Exchange continues to invest in 

enhancing its technology for the benefit 

and often at the behest of its customers. 

Yet the Exchange has not adjusted any 

of the fees included in this proposal for 

many years (as set forth below), to even 

partially offset the costs of maintaining 

and enhancing its market data offerings. 

Inflationary Index 

The fee increases the Exchange 

proposes are based on an industryspecific Producer Price Index (PPI), 

which is a tailored measure of 

inflation.6 As a general matter, the 

Producer Price Index is a family of 

indexes that measures the average 

change over time in selling prices 

received by domestic producers of 

goods and services, measuring price 

change from the perspective of the 

seller. This contrasts with other metrics, 

such as the Consumer Price Index (CPI), 

that measure price change from the 

purchaser’s perspective.7

About 10,000 PPIs for individual 

products and groups of products are 

tracked and released each month.8 PPIs 

are available for the output of nearly all 

industries in the goods-producing 

sectors of the U.S. economy—mining, 

manufacturing, agriculture, fishing, and 

forestry—as well as natural gas, 

electricity, and construction, among 

others. The PPI program covers 

approximately 69 percent of the service 

sector’s output, as measured by revenue 

reported in the 2017 Economic Census. 

For purposes of this proposal, the 

relevant industry-specific PPI is the 

Data Processing and Related Services 

PPI (‘‘Data Processing PPI’’), which is an 

industry net-output PPI that measures 

the average change in selling prices 

received by companies that provide data 

processing services. The Data Processing 

PPI was introduced in January 2002 by 

the Bureau of Labor Statistics (BLS) as 

part of an ongoing effort to expand 

Producer Price Index coverage of the 

services sector of the U.S. economy and 

is identified as NAICS—518210 in the 

North American Industry Classification 

System.9 According to the BLS ‘‘[t]he 

primary output of NAICS 518210 is the 

provision of electronic data processing 

services. In the broadest sense, 

computer services companies help their 

customers efficiently use technology. 

The processing services market consists 

of vendors who use their own computer 

systems—often utilizing proprietary 

software—to process customers’ 

transactions and data. Companies that 

offer processing services collect, 

organize, and store a customer’s 

transactions and other data for recordkeeping purposes. Price movements for 

the NAICS 518210 index are based on 

changes in the revenue received by 

companies that provide data processing 

services. Each month, companies 

provide net transaction prices for a 

specified service. The transaction is an 

actual contract selected by probability, 

where the price-determining 

characteristics are held constant while 

the service is repriced. The prices used 

in index calculation are the actual 

prices billed for the selected service 

contract.’’ 10

The Exchange believes the Data 

Processing PPI is an adequate measure 

to for adjusting fees for its proprietary 

market data products because the 

Exchange uses its ‘‘own computer 

systems’’ and ‘‘proprietary software,’’ 

i.e., its own data center and proprietary 

matching engine software, respectively, 

to collect, organize, store and report 

customers’ transactions in U.S. equity 

securities.11

The Exchange furthermore notes that 

the Data Processing PPI is a stable 

metric with limited volatility, unlike 

other consumer-side inflation metrics. 

The Data Processing PPI has not 

experienced a greater than 2.16% 

increase for any one calendar year 

period since Data Processing PPI was 

introduced into the PPI in January 2002. 

The average calendar year change from 

January 2002 to December 2023 was 

0.62%, with a cumulative increase of 

15.67% over this 21-year period. 

The Exchange notes that other 

exchanges have filed for increases in 

certain fees, based in part on the rate of 

inflation.12

Calculation and Proposed Fee Changes 

The proposed inflationary 

adjustments are based on a comparison 

of the Data Processing PPI index on the 

last date that the relevant fee was 

adjusted with the level of the Data 

Processing PPI index on August 1, 2024. 

For example, for a fee that was last 

changed on September 1, 2010, the 

Exchange divided the difference 

between the Data Processing PPI index 

on August 2024 (116.022) and the Data 

Processing PPI index in September 2010 

(101.7) by the Data Processing PPI index 

in September 2010 (101.7), to calculate 

a total inflationary adjustment of 14 

percent to obtain the percentage 

increase. That percentage increase was 

then applied to the prior fee to 

determine the proposed fee, and then 

rounding the result.13 This calculation 

was repeated for each market data fee. 


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Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 100575 

exceed the rate of inflation, the Exchange rounded 

downward. 

As noted above, the Exchange 

proposes to adjust fees through a onetime inflationary adjustment to be 

executed in three tranches: one in 2025 

that will cover 45 percent of the 

adjustment, another in 2026 to cover an 

additional 30 percent, and a final 

tranche in 2027 for the final 25 percent 

of the adjustment. 

Table 1 below shows the proposed 

changes for 2025, 2026 and 2027, the 

date of the last fee change, and the 

overall adjustment: 

TABLE 1—PROPOSED INFLATIONARY ADJUSTMENT

Product Current 2025 2026 2027 Last 

change 

Overall 

percent 

change 14

Market Data Distributor Fees 

Direct Access Fee (Nasdaq) .................................................. $2,000 $2,125 $2,224 $2,281 15 9/1/2010 14.1 

Direct Access Fee (Non-Nasdaq) .......................................... 1,000 1,065 1,116 1,141 16 9/1/2010 14.1 

Internal Distributor Fee (Nasdaq) .......................................... 1,000 1,070 1,125 1,162 17 7/1/2006 16.2 

Internal Distributor Fee (Non-Nasdaq) .................................. 500 540 565 581 18 7/1/2006 16.2 

External Distributor Fee (Nasdaq) ......................................... 2,500 2,680 2,820 2,906 19 7/1/2006 16.2 

External Distributor Fee (Non-Nasdaq) ................................. 1,250 1,340 1,410 1,453 20 7/1/2006 16.2 

Short Interest Report 

Access Fee ............................................................................ 500 520 535 543 21 7/1/2017 22 8.6 

Internal Distribution ................................................................ 1,000 1,040 1,070 1,087 23 7/1/2017 8.7 

External Distribution (1–499 Subscribers) ............................. 2,500 2,600 2,680 2,718 24 7/1/2017 8.7 

External Distribution (500–9,999 Subscribers) ...................... 5,000 5,200 5,350 5,437 25 7/1/2017 8.7 

External Distribution (10,000+ Subscribers) .......................... 7,500 7,800 8,030 8,155 26 7/1/2017 8.7 

External Distribution (Enterprise License) ............................. 1,500 1,560 1,610 1,631 27 7/1/2017 8.7 

Depth-of-Book Data 

Level 2 Pro ............................................................................. 76 80.50 84.00 86.00 28 3/1/2012 29 13.2 

TotalView Pro ......................................................................... 76 80.50 84.00 86.00 30 3/1/2012 31 13.2 

Non-Display (1–39 Subscribers) ............................................ 375 396 412 421 32 1/1/2016 33 12.3 

Non-Display (40–99 Subscribers) .......................................... 15,000 15,840 16,490 16,863 34 1/1/2016 12.4 

Non-Display (100–249 Subscribers) ...................................... 30,000 31,680 32,990 33,727 35 1/1/2016 12.4 

Trading Platform Fee ............................................................. 5,000 5,270 5,480 5,600 36 12/1/2014 37 12.0 

Trading Platform Fee Threshold ............................................ 15,000 15,810 16,440 16,800 38 12/1/2014 39 12.0 

Distribution Models 

Enhanced Display Solutions (EDS) (1–399) ......................... 4,000 4,220 4,390 4,479 40 11/1/2014 12.0 

Enhanced Display Solutions (400–999) ................................ 7,500 7,910 8,230 8,399 41 11/1/2014 12.0 

Enhanced Display Solutions (1,000+) ................................... 15,000 15,810 16,440 16,798 42 11/1/2014 12.0 

Enhanced Display Solutions Professional ............................. 80 84.50 88.00 89.50 43 11/1/2014 44 11.9 

Enhanced Display Solutions Enterprise License ................... 33,500 34,990 36,150 36,806 45 2/1/2017 9.9 

Enterprise License Professional ............................................ 76 80.50 84.00 86.00 46 3/1/2012 47 13.2 

Managed Data Solution per Distributor ................................. 2,500 2,640 2,750 2,810 48 1/1/2016 12.4 

Managed Data Solution per Professional .............................. 375 396 412 421 49 1/1/2016 50 12.3 

FPGA Internal ........................................................................ 25,000 26,570 27,790 28,490 51 5/1/2012 14.0 

FPGA External ....................................................................... 2,500 2,660 2,780 2,849 52 5/1/2012 14.0 

FGPA Internal and External ................................................... 27,500 29,230 30,570 31,339 53 5/1/2012 14.0 

Managed Data Solution Administration Fee first Subscriber 5,000 5,280 5,500 5,621 54 1/1/2016 12.4 

Managed Data Solution Administration Fee additional Subscribers ............................................................................... 750 792 825 843 55 1/1/2016 12.4 

FilterView Service 

FilterView ............................................................................... 750 780 803 815 56 12/1/2017 8.7 

Nasdaq Last Sale (NLS) 

NLS per Subscriber (Nasdaq—Specialized Use) .................. 13 13.50 14.10 14.50 57 1/1/2014 58 11.5 

NLS per Subscriber (non-Nasdaq—Specialized Use) ........... 13 59 13.80 14.40 14.50 60 1/1/2014 61 11.5 

NLS Distributor ....................................................................... 1,500 1,600 1,680 1,724 62 7/1/2008 63 14.9 

NLS Distributor (Specialized Use) ......................................... 2,000 2,080 2,140 2,170 64 1/1/2018 65 8.5 

Nasdaq Share Volume Service 

Access Fee ............................................................................ 2,500 2,680 2,820 2,897 66 2/1/2007 15.9 


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14The overall percentage change is determined by 

the Data Processing PPI index, as discussed above. 

In a few instances, the overall percentage change is 

below the Data Processing PPI index due to 

rounding. Such instances are footnoted below. 

15See Securities Exchange Act Release No. 62907 

(September 14, 2010), 75 FR 57324 (September 20, 

2010) (SR–Nasdaq–2010–110). 

16See id. 

17See Securities Exchange Act Release No. 54179 

(July 20, 2006), 71 FR 42428 (July 26, 2006) (SR– 

Nasdaq–2006–013). 

18See id. 

19See id. 

20See id. 

21See Securities Exchange Act Release No. 81256 

(July 28, 2017), 82 FR 36168 (August 3, 2017) (SR– 

Nasdaq–2017–077). 

22The change as calculated by the Data 

Processing PPI index is 8.7%. The actual change is 

8.6% due to rounding of the fee. 

23See Securities Exchange Act Release No. 81256 

(July 28, 2017), 82 FR 36168 (August 3, 2017) (SR– 

Nasdaq–2017–077). 

24See id. 

25See id. 

26See id. 

27See id. 

28See Securities Exchange Act Release No. 66740 

(April 5, 2012), 77 FR 21609 (April 10, 2012) (SR– 

Nasdaq–2012–042). 

29The change as calculated by the Data 

Processing PPI index is 13.6%. The actual change 

is 13.2% due to rounding of the fee. 

30See Securities Exchange Act Release No. 66740 

(April 5, 2012), 77 FR 21609 (April 10, 2012) (SR– 

Nasdaq–2012–042). 

31The change as calculated by the Data 

Processing PPI index is 13.6%. The actual change 

is 13.2% due to rounding of the fee. 

32See Securities Exchange Act Release No. 76779 

(December 28, 2015), 81 FR 131 (January 4, 2016) 

(SR–Nasdaq–2015–157). 

33The change as calculated by the Data 

Processing PPI index is 12.4%. The actual change 

is 12.3% due to rounding of the fee. 

34See Securities Exchange Act Release No. 76779 

(December 28, 2015), 81 FR 131 (January 4, 2016) 

(SR–Nasdaq–2015–157). 

35See id. 

36See Securities Exchange Act Release No. 73978 

(January 2, 2015), 80 FR 1057 (January 8, 2015) (SR– 

Nasdaq–2014–125). 

37The change as calculated by the Data 

Processing PPI index is 12.1%. The actual change 

is 12.0% due to rounding of the fee. 

38See Securities Exchange Act Release No. 73978 

(January 2, 2015), 80 FR 1057 (January 8, 2015) (SR– 

Nasdaq–2014–125). 

39The change as calculated by the Data 

Processing PPI index is 12.1%. The actual change 

is 12.0% due to rounding of the fee. 

40See Securities Exchange Act Release No. 73807 

(December 10, 2014), 79 FR 74784 (December 16, 

2014) (SR–Nasdaq–2014–117). 

41See id. 

42See id. 

43See id. 

44The change as calculated by the Data 

Processing PPI index is 12.0%. The actual change 

is 11.9% due to rounding of the fee. 

45See Securities Exchange Act Release No. 80015 

(February 10, 2017), 82 FR 10944 (February 16, 

2017) (SR–Nasdaq–2017–007). 

46See id. 

47The change as calculated by the Data 

Processing PPI index is 13.6%. The actual change 

is 13.2% due to rounding of the fee. 

48See Securities Exchange Act Release No. 76797 

(December 30, 2015), 81 FR 544 (January 6, 2016) 

(SR–Nasdaq–2015–158). 

49See Securities Exchange Act Release No. 76779 

(December 28, 2015), 81 FR 131 (January 4, 2016) 

(SR–Nasdaq–2015–157) 

50The change as calculated by the Data 

Processing PPI index is 12.4%. The actual change 

is 12.3% due to rounding of the fee. 

51See Securities Exchange Act Release No. 76297 

(June 28, 2012), 77 FR 39752 (July 5, 2012) (SR– 

Nasdaq–2012–063). 

52See id. 

53See id. 

54See Securities Exchange Act Release No. 76797 

(December 30, 2015), 81 FR 544 (January 6, 2016) 

(SR–Nasdaq–2015–158). 

55See id. 

56See Securities Exchange Act Release No. 82467 

(January 9, 2018), 83 FR 2261 (January 16, 2018) 

(SR–Nasdaq–2017–134). 

57Nasdaq Last Sale (specialized use case) was 

instituted in 2018. See Securities Exchange Act 

Release No. 82723 (February 15, 2018), 83 FR 7812 

(February 22, 2018) (SR–Nasdaq–2018–010). At that 

time, fees were set to be the equivalent of Nasdaq 

Basic fees set in 2014. See Securities Exchange Act 

Release No. 71507 (February 7, 2014), 79 FR 8763 

(February 13, 2014) (SR–Nasdaq–2014–011). In 

order to ensure that these fees remained aligned as 

intended by the 2018 filing, we are using the 2014 

date, when the Nasdaq Basic fees were first set, to 

calculate the inflationary adjustment. 

58Fees for NLS (Specialized Use Case) were 

designed to be equivalent to Nasdaq Basic Fees. The 

PPI adjustment for Nasdaq Basic is 12.3%. The fee 

adjustment for NLS Specialized Use Case is 11.5%. 

59The fees for NLS (non-Nasdaq—Specialized 

Use Case for 2025, 2026 and 2027 are being 

adjusted to remain equivalent to the Subscriber fees 

for Nasdaq Basic. See Equity 7, Section 147(a)(1). 

As discussed in note 49 below, the fees for NLS 

Specialized Use Case were intended to be the same 

as the fees for Nasdaq Basic. See Securities 

Exchange Act Release No. 82723 (February 15, 

2018), 83 FR 7812 (February 22, 2018) (SR–Nasdaq– 

2018–010). 

60Nasdaq Last Sale (specialized use case) was 

instituted in 2018. See Securities Exchange Act 

Release No. 82723 (February 15, 2018), 83 FR 7812 

(February 22, 2018) (SR–Nasdaq–2018–010). At that 

time, fees were set to be the equivalent of Nasdaq 

Basic fees set in 2014. See Securities Exchange Act 

Release No. 71507 (February 7, 2014), 79 FR 8763 

(February 13, 2014) (SR–Nasdaq–2014–011). In 

order to ensure that these fees remained aligned as 

intended by the 2018 filing, we are using the 2014 

date, when the Nasdaq Basic fees were first set, to 

calculate the inflationary adjustment. 

61Fees for NLS (Specialized Use Case) were 

designed to be equivalent to Nasdaq Basic Fees. The 

PPI adjustment for Nasdaq Basic is 12.3%. The fee 

adjustment for NLS Specialized Use Case is 11.5%. 

62See Securities Exchange Act Release No. 55255 

(February 8, 2007), 72 FR 7100 (February 14, 2007) 

(SR–Nasdaq–2006–060). 

63The change as calculated by the Data 

Processing PPI index is 15.0%. The actual change 

is 14.9% due to rounding of the fee. 

64As noted above, the Nasdaq Last Sale 

(specialized use case) was instituted in 2018. See 

Securities Exchange Act Release No. 82723 

(February 15, 2018), 83 FR 7812 (February 22, 2018) 

(SR–Nasdaq–2018–010). At that time, fees were set 

to be the equivalent of Nasdaq Basic fees. The 

Nasdaq Basic external distributor fee was set in 

January of 2018. See Securities Exchange Act 

Release No. 82541 (January 19, 2018), 83 FR 3790 

(January 26, 2018) (SR–Nasdaq–2018–004). To 

TABLE 1—PROPOSED INFLATIONARY ADJUSTMENT—Continued 

Product Current 2025 2026 2027 Last 

change 

Overall 

percent 

change 14

Nasdaq Basic 

Subscriber Fee (Nasdaq) ....................................................... 13 13.50 14.10 14.50 67 1/1/2014 68 11.5 

Subscriber Fee (NYSE) ......................................................... 6.50 6.90 7.20 7.25 69 1/1/2014 70 11.5 

Subscriber Fee (Other) .......................................................... 6.50 6.90 7.20 7.25 71 1/1/2014 72 11.5 

Distributor Fee (Internal) ........................................................ 1,500 1,600 1,680 1,723 73 1/1/2009 14.9 

Distributor Fee (External) ....................................................... 2,000 2,080 2,140 2,170 74 1/1/2018 75 8.5 

Nasdaq Daily Short Volume and Monthly Short Sale Transaction Files 

Internal Distribution ................................................................ 750 783 809 824 76 1/1/2017 9.9 

External Distribution ............................................................... 1,250 1,300 1,340 1,373 77 1/1/2017 78 9.8 

Nasdaq MatchView Feed 

One Server ............................................................................. 5,000 5,310 5,550 5,687 79 10/1/2011 13.7 

Two or more Servers ............................................................. 10,000 10,620 11,100 11,374 80 10/1/2011 13.7 

2. Statutory Basis 

The Exchange believes that its 

proposal to change fees is consistent 


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Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 100577 

maintain equivalence of NLS (specialized use case) 

fees and Nasdaq Basic, we used the 2018 date for 

the inflationary adjustment. 

65The change as calculated by the Data 

Processing PPI index is 8.6%. The actual change is 

8.5% due to rounding of the fee. 

66See Securities Exchange Act Release No. 55444 

(March 12, 2007), 72 FR 12648 (March 16, 2007) 

(SR–Nasdaq–2007–006). 

67See Securities Exchange Act Release No. 71507 

(February 7, 2014), 79 FR 8763 (February 13, 2014) 

(SR–Nasdaq–2014–011). 

68The change as calculated by the Data 

Processing PPI index is 12.3%. The actual change 

is 11.5% due to rounding of the fee. 

69See id. 

70The change as calculated by the Data 

Processing PPI index is 12.3%. The actual change 

is 11.5% due to rounding of the fee. 

71See id. 

72The change as calculated by the Data 

Processing PPI index is 12.3%. The actual change 

is 11.5% due to rounding of the fee. 

73Securities Exchange Act Release No. 59244 

(January 13, 2009), 74 FR 4065 (January 22, 2009) 

(SR–Nasdaq–2008–102). 

74Securities Exchange Act Release No. 82541 

(January 19, 2018), 83 FR 3790 (January 26, 2018) 

(SR–Nasdaq–2018–004). 

75The change as calculated by the Data 

Processing PPI index is 8.7%. The actual change is 

8.5% due to rounding of the fee. 

76See Securities Exchange Act Release No. 79617 

(December 20, 2016), 81 FR 95213 (December 27, 

2016) (SR–Nasdaq–2016–168). 

77See id. 

78The change as calculated by the Data 

Processing PPI index is 9.9%. The actual change is 

9.8% due to rounding of the fee. 

79Securities Exchange Act Release No. 65525 

(October 11, 2011), 76 FR 64158 (October 17, 2011) 

(SR–Nasdaq–2011–139). 

80See id. 

81 15 U.S.C. 78f(b). 

82 15 U.S.C. 78f(b)(4) and (5). 

83See https://www.officialdata.org/us/inflation/ 

2019?endYear=2023&amount=1. 

84See https://data.bls.gov/timeseries/ 

PCU518210518210. 

with Section 6(b) of the Act,81 in 

general, and furthers the objectives of 

Sections 6(b)(4) and 6(b)(5) of the Act,82

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, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

This belief is based on two factors. 

First, the current fees do not properly 

reflect the quality of the services and 

products, as fees for the services and 

products in question have been static in 

nominal terms, and therefore falling in 

real terms due to inflation. Second, the 

Exchange believes that investments 

made in enhancing the capacity of 

Exchange systems have increased the 

performance of the services and 

products notwithstanding fees having 

remained static in nominal terms. 

Equitable Allocation of Reasonable 

Dues, Fees and Other Charges 

The proposed changes are an 

equitable allocation of reasonable dues, 

fees, and other charges because, as 

noted above, the Exchange has not 

increased any of the fees included in the 

proposal since the dates indicated in 

Table 1. In the years following the last 

fee increase, the Exchange has made 

significant investments in upgrades to 

Exchange systems and enhancing the 

quality of its services as measured by, 

among other things, increased 

throughput. As such, Exchange 

customers have benefitted while the 

Exchange’s ability to recoup its 

investments has been hampered, and 

Exchange fees have fallen in real terms 

during the relevant period. 

Between 2018 and 2023, for example, 

the overall inflation rate was an average 

of 3.93% per year, producing a 

cumulative inflation rate of 21.28%.83

Using the more targeted inflation 

number of Data Processing PPI, the 

cumulative inflation rate was 8.07%.84

The Exchange believes the Data 

Processing PPI is a reasonable metric for 

this fee increase because it is targeted to 

producer-side increases in the data 

processing industry, which, based on 

the definition adopted by BLS, would 

include the Exchange’s market data 

products. Notwithstanding this 

inflation, the Exchange has not 

increased its fees for the subject services 

for the period of time indicated in Table 

1, and therefore the proposed fee 

changes represent a reasonable increase 

from the current fees. 

The Exchange believes the proposed 

fee increase is reasonable in light of the 

Exchange’s continued expenditure in 

maintaining a robust technology 

ecosystem. The Exchange continues to 

invest in maintaining and enhancing its 

market data products for the benefit and 

often at the behest of its customers and 

global investors. Such enhancements 

include refreshing all aspects of the 

technology ecosystem including 

software, hardware, and network while 

introducing new and innovative 

products. The goal of these 

enhancements, among other things, is to 

provide faster and more consistent 

market data products. The Exchange 

continues to expend resources to 

innovate and modernize technology so 

that it may benefit its members in 

offering its market data products. 

The Proposal Does Not Permit Unfair 

Discrimination 

The proposed fee increases are not 

unfairly discriminatory because they 

would apply to all data recipients that 

choose to purchase the market data 

products identified above. Any person 

that chooses to purchase any of these 

products would be subject to the same 

fee schedule, regardless of what type of 

business they operate or the use they 

plan to make of the data feed. 

Additionally, the fee increase would be 

applied uniformly to subscribers 

without regard to Exchange membership 

status or the extent of any other 

business with the Exchange or affiliated 

entities. 

The proposed changes are also not 

unfairly discriminatory because the fees 

would be assessed uniformly across all 

market participants that purchase these 

products in the same manner they are 

today, and all products will remain 

available for purchase by all market 

participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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. 

Intramarket Competition 

The proposed fees do not put any 

market participants at a relative 

disadvantage compared to other market 

participants. As noted above, the fee 

schedule would continue to apply to all 

customers of the market data products 

identified above in the same manner as 

it does today, albeit at inflation-adjusted 

rates for certain fees, and customers may 

choose whether to subscribe to the feed 

at all. The Exchange also believes that 

the level of the proposed fees neither 

favors nor penalizes any one or more 

categories of market participants in a 

manner that would impose an undue 

burden on competition. 

Intermarket Competition 

The proposed fees do not impose a 

burden on competition or on other Self 

Regulatory Organizations that is not 

necessary or appropriate. In determining 

the proposed fees, the Exchange utilized 

an objective and stable metric with 

limited volatility. Utilizing Data 

Processing PPI over a specified period of 

time is a reasonable means of recouping 

the Exchange’s investment in 

maintaining and enhancing the market 

data products identified above. The 

Exchange believes utilizing Data 

Processing PPI, a tailored measure of 

inflation, to increase certain market data 

fees to recoup the Exchange’s 

investment in maintaining and 

enhancing its market data products 

would not impose a burden on 

competition. 


ddrumheller on DSK120RN23PROD with NOTICES1
100578 Federal Register / Vol. 89, No. 239 / Thursday, December 12, 2024 / Notices 

85 15 U.S.C. 78s(b)(3)(A)(ii). 

86 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78c(a)(39). 

5See FINRA Regulatory Notice 09–19 

(‘‘Amendments to FINRA Rule 9520 Series to 

Establish Procedures Applicable to Firms and 

Associated Persons Subject to Certain Statutory 

Disqualifications’’). 

6 17 CFR 240.19h–1. 

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.85

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: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NASDAQ–2024–076 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–2024–076. 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 website (https://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 website 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. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NASDAQ–2024–076 and should be 

submitted on or before January 2, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.86

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29151 Filed 12–11–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101830; File No. SR– 

NYSEAMER–2024–75] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Amend Rule 342 

December 6, 2024. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on December 

3, 2024, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. 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 

The Exchange proposes to amend 

Rule 342 to add clarity to the process for 

a broker-dealer to become or remain a 

member organization notwithstanding a 

statutory disqualification. The proposed 

rule change is available on the 

Exchange’s website at www.nyse.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 

self-regulatory organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

proposes to amend Rule 342 to add 

clarity to the process to the process for 

a broker-dealer to become or remain a 

member organization notwithstanding a 

statutory disqualification. 

Background and Proposed Rule Filing 

Section 3(a)(39) of the Act defines the 

term ‘‘statutory disqualification’’ and 

the circumstances that can cause a 

person (either a Member, or a person 

associated with a Member) to be subject 

to a statutory disqualification.4 Absent 

relief, a statutory disqualification would 

preclude a broker-dealer or person 

associated with a broker-dealer from 

certain activities, including membership 

in a self-regulatory organization 

(‘‘SRO’’). 

There is, however, a well-established 

process through which a broker-dealer 

(or a person associated with a brokerdealer) may continue to operate in the 

securities industry (and either become a 

member of, or continue as a member of, 

one or more SROs) despite being subject 

to a statutory disqualification.5 In 

particular, SEC Rule 19h–1 6 describes 

several ways an SRO may seek relief for 

a member (or prospective member) that 

is subject to a statutory disqualification, 


ddrumheller on DSK120RN23PROD with NOTICES1