29314 Federal Register / Vol. 86, No. 103 / Tuesday, June 1, 2021 / Notices 

14See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

15NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f). 18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

investors and listed companies.’’ 14 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’.15 Accordingly, the 

Exchange does not believe its proposed 

fee changes imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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) 

of the Act 16 and paragraph (f) of Rule 

19b–4 17 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. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change 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– 

CboeBZX–2021–040 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–CboeBZX–2021–040. 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 (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 website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549–1090 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CboeBZX–2021–040 and 

should be submitted on or before June 

22, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–11406 Filed 5–28–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92000; File No. SR–BX– 

2021–024] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Equity 7, 

Section 118 

May 25, 2021. 

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 May 19, 

2021, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend: (i) 

The Exchange’s transaction credits, at 

Equity 7, Section 118(a), as described 

further below. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/bx/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 Exchange operates on the ‘‘takermaker’’ model, whereby it generally 

pays credits to members that take 


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Federal Register / Vol. 86, No. 103 / Tuesday, June 1, 2021 / Notices 29315 

3 15 U.S.C. 78f(b). 

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

5NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSEArca–2006–21)). 

6Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 

7See CBOE BYX Fee Schedule, at http://

markets.cboe.com/us/equities/membership/fee_

schedule/byx/; NYSE National Fee Schedule, at 

https://www.nyse.com/publicdocs/nyse/regulation/ 

nyse/NYSE_National_Schedule_of_Fees.pdf. 

8The Exchange perceives no regulatory, 

structural, or cost impediments to market 

participants shifting order flow away from it. In 

particular, the Exchange notes that these examples 

of shifts in liquidity and market share, along with 

many others, have occurred within the context of 

market participants’ existing duties of Best 

Execution and obligations under the Order 

Protection Rule under Regulation NMS. 

liquidity and charges fees to members 

that provide liquidity. Currently, the 

Exchange has a schedule, at Equity 7, 

Section 118(a), which consists of several 

different credits that it provides for 

orders in securities priced at $1 or more 

per share that access liquidity on the 

Exchange and several different charges 

that it assesses for orders in such 

securities that add liquidity on the 

Exchange. 

The Exchange proposes to add a new 

credit to this schedule of $0.0018 per 

share executed for orders in securities in 

Tape B that access liquidity (excluding 

orders with Midpoint pegging and 

excluding orders that receive price 

improvement and execute against an 

order with a Non-displayed price) 

entered by a member that: (i) Accesses 

at least 60% more liquidity in securities 

in Tape B, as a percentage of total 

Consolidated Volume during a month, 

than it did during April 2021; (ii) 

accesses liquidity in securities in Tape 

B equal to or exceeding 0.035% of total 

Consolidated Volume during a month; 

and (iii) adds liquidity equal to or 

exceeding an average daily volume of 

50,000 shares in a month. Orders in 

securities in Tapes A and C will not be 

eligible for the new proposed credit. 

The Exchange intends for this new 

credit to reward members that remove 

significant volumes of Tape B liquidity 

from the Exchange and to encourage 

such members to further grow the extent 

to which they remove Tape B liquidity 

from the Exchange. The Exchange 

believes that any ensuing increase in the 

removal of Tape B liquidity from the 

Exchange will improve the quality of 

the Exchange’s market. In particular, the 

Exchange intends to encourage members 

to increase the extent to which they 

remove liquidity in securities in Tape B, 

as the Exchange believes that increased 

removal activity in securities in Tape B 

is most needed and likely to be most 

beneficial to market quality. 

The Exchange also notes that, like its 

other removal credit tiers, it proposes to 

tie the new proposed credit to the 

addition of at least an average daily 

volume of 50,000 shares of liquidity 

during the month. Doing so will help to 

incent members, not only to remove a 

significant amount of liquidity from the 

Exchange, but also to add a significant 

amount of liquidity as well. Any 

increase in liquidity adding activity that 

ensues from this credit will improve 

market quality, to the benefit of all 

participants. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,3 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,4 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. The 

proposal is also consistent with Section 

11A of the Act relating to the 

establishment of the national market 

system for securities. 

The Proposal Is Reasonable 

The Exchange’s proposed change to 

its schedule of credits is reasonable in 

several respects. As a threshold matter, 

the Exchange is subject to significant 

competitive forces in the market for 

equity securities transaction services 

that constrain its pricing determinations 

in that market. The fact that this market 

is competitive has long been recognized 

by the courts. In NetCoalition v. 

Securities and Exchange Commission, 

the D.C. Circuit stated as follows: ‘‘[n]o 

one disputes that competition for order 

flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . . .’’ 5

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 6

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for equity 

security transaction services. The 

Exchange is only one of several equity 

venues to which market participants 

may direct their order flow, and it 

represents a small percentage of the 

overall market. It is also only one of 

several taker-maker exchanges. 

Competing equity exchanges offer 

similar tiered pricing structures to that 

of the Exchange, including schedules of 

rebates and fees that apply based upon 

members achieving certain volume 

thresholds.7

Within this environment, market 

participants can freely and often do shift 

their order flow among the Exchange 

and competing venues in response to 

changes in their respective pricing 

schedules.8 Within the foregoing 

context, the proposal represents a 

reasonable attempt by the Exchange to 

increase its liquidity and market share 

relative to its competitors. 

The Exchange believes that its 

proposal is reasonable to establish a 

new remove credit with a growth 

component tied to the removal of 

liquidity in securities in Tape B. The 

proposal will encourage members to 

increase the extent to which they 

remove Tape B liquidity from the 

Exchange, and it will reward members 

that do so in significant volumes. The 

Exchange believes that any ensuing 

increase in the removal of liquidity from 

the Exchange—and in particular, 

liquidity in securities in Tape B—will 

improve the quality of the Exchange’s 

market, and it will cause the Exchange 

to become more attractive to existing 

and prospective participants. The 

Exchange notes that it selected April 

2021 as the baseline for the growth 

requirements because it is the month 

immediately preceding the 

establishment of the new tier. 

The Exchange also believes it is 

reasonable to tie the new proposed 

credit to the addition of at least an 

average daily volume of 50,000 shares of 

liquidity during the month. Doing so 

will help to incent members, not only to 

remove a significant amount of liquidity 

from the Exchange, but also to add a 


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29316 Federal Register / Vol. 86, No. 103 / Tuesday, June 1, 2021 / Notices 

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

significant amount of liquidity as well. 

Any increase in liquidity adding activity 

that ensues from this credit will 

improve market quality, to the benefit of 

all participants. The Exchange notes 

that it includes the same criteria in 

several of its existing remove credit 

tiers. 

The Exchange notes that those 

participants that are dissatisfied with 

the proposed credit are free to shift their 

order flow to competing venues that 

offer them higher credits or lower 

charges. 

The Proposal Is an Equitable Allocation 

of Credits and Charges 

The Exchange believes that it is an 

equitable allocation of its credits to 

establish a new remove credit tier that 

is tied to the growth in removal of 

liquidity in securities in Tape B. The 

addition of this new proposed credit tier 

will encourage members to increase the 

extent to which they remove Tape B 

liquidity from the Exchange, and it will 

reward members that do so in 

significant volumes. The Exchange 

believes that any increase in the 

removal of liquidity from the Exchange 

that follows from the introduction of 

this new credit—and in particular, 

liquidity in securities in Tape B—will 

improve the quality of the Exchange’s 

market, and it will cause the Exchange 

to become more attractive to existing 

and prospective participants. 

The Exchange also believes it is an 

equitable allocation to tie the new 

proposed credit to the addition of at 

least an average daily volume of 50,000 

shares of liquidity during the month. 

Doing so will help to incent members, 

not only to remove a significant amount 

of liquidity from the Exchange, but also 

to add a significant amount of liquidity 

as well. Any increase in liquidity 

adding activity that ensues from this 

credit will improve market quality, to 

the benefit of all participants. The 

Exchange notes that it includes the same 

criteria in several of its existing remove 

credit tiers. 

Any participant that is dissatisfied 

with the proposal is free to shift their 

order flow to competing venues that 

provide more generous pricing or less 

stringent qualifying criteria. 

The Proposed New Credit Is Not 

Unfairly Discriminatory 

The Exchange believes that its new 

proposed remove credit with a growth 

component is not unfairly 

discriminatory because it is aimed at 

encouraging the growth in removal of 

liquidity from the Exchange, which if 

successful, stands to improve the 

quality of the Exchange’s market, to the 

benefit of all market participants. The 

Exchange notes that its proposal to offer 

the new credit to members with orders 

in securities in Tape B is fair because 

the Exchange observes that its market 

has a greater need for, and its market 

quality would benefit most from, growth 

in removal of liquidity in securities in 

Tape B. The Exchange has limited 

resources with which to apply to 

incentives, and it must allocate those 

limited resources in a manner that 

prioritizes areas of greatest need and 

potential effect. 

Any participant that is dissatisfied 

with the proposal is free to shift their 

order flow to competing venues that 

provide more generous pricing or less 

stringent qualifying criteria. 

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 Exchange does not believe that its 

proposal will place any category of 

Exchange participant at a competitive 

disadvantage. As noted above, all 

members of the Exchange will benefit 

from any increase in market activity that 

the proposal effectuates. Members may 

grow or modify their businesses so that 

they can receive the new proposed 

credit. Moreover, members are free to 

trade on other venues to the extent they 

believe that the credit proposed is not 

attractive. As one can observe by 

looking at any market share chart, price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely between exchanges in 

reaction to fee and credit changes. 

Intermarket Competition 

In terms of inter-market competition, 

the Exchange 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, the 

Exchange must continually adjust its 

credits and 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 credits and fees in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which credit 

changes in this market may impose any 

burden on competition is extremely 

limited. 

The proposed new credit is reflective 

of this competition because, as a 

threshold issue, the Exchange is a 

relatively small market so its ability to 

burden intermarket competition is 

limited. In this regard, even the largest 

U.S. equities exchange by volume has 

less than 17% market share, which in 

most markets could hardly be 

categorized as having enough market 

power to burden competition. Moreover, 

as noted above, price competition 

between exchanges is fierce, with 

liquidity and market share moving 

freely between exchanges in reaction to 

fee and credit changes. This is in 

addition to free flow of order flow to 

and among off-exchange venues which 

comprised more than 41% of industry 

volume for the month of March 2021. 

In sum, if the change proposed herein 

is unattractive to market participants, it 

is likely that the Exchange will lose 

market share as a result. Accordingly, 

the Exchange does not believe that the 

proposed change will impair the ability 

of members or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets. 

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.9

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 


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Federal Register / Vol. 86, No. 103 / Tuesday, June 1, 2021 / Notices 29317 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Pursuant to Equity 7, Section 118, a ‘‘Designated 

Retail Order’’ is an agency or riskless principal 

order that meets the criteria of FINRA Rule 5320.03 

and that originates from a natural person and is 

submitted to Nasdaq by a member that designates 

it pursuant to this section, provided that no change 

is made to the terms of the order with respect to 

price or side of market and the order does not 

originate from a trading algorithm or any other 

computerized methodology. 

4Pursuant to Equity 4, Section 4758(a)(1)(A)(xv), 

‘‘SCAR’’ is a routing option under which orders will 

check the System for available shares and 

simultaneously route to BX and Nasdaq PSX in 

accordance with the System routing table. If shares 

remain unexecuted after routing, they are posted on 

the book or cancelled. Once on the book, should the 

order subsequently be locked or crossed by another 

market center, the System will not route the order 

to the locking or crossing market center. 

5Equity 7, Section 118(a) defines ‘‘Consolidated 

Volume’’ to mean 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. For purposes of calculating Consolidated 

Volume and the extent of a member’s trading 

activity the date of the annual reconstitution of the 

Russell Investments Indexes is excluded from both 

total Consolidated Volume and the member’s 

trading activity. 

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– 

BX–2021–024 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–BX–2021–024. 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 (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 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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–BX–2021–024 and should 

be submitted on or before June 22, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–11403 Filed 5–28–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92012; File No. SR– 

NASDAQ–2021–043] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange’s Transaction Credits at 

Equity 7, Section 118(a) 

May 25, 2021. 

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 May 19, 

2021, The Nasdaq Stock Market LLC 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by 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 transaction credits at Equity 

7, Section 118(a), as described further 

below. 

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 amend the Exchange’s 

schedule of credits, at Equity 7, Section 

118(a). Specifically, the Exchange 

proposes to (1) amend an existing credit 

of $0.0030 per share executed for 

members that add at least a certain 

threshold volume of liquidity in 

securities in Tape B; (2) amend an 

existing credit of $0.00295 per share 

executed for members that add at least 

a certain threshold volume of liquidity 

in securities in Tape C and in 

‘‘Designated Retail Orders’’ 3 for 

securities in any Tape; (3) amend an 

existing credit of $0.0027 per share for 

members that meet specified volume 

requirements on both Nasdaq and the 

Nasdaq Options Market (‘‘NOM’’) when 

adding liquidity; and (4) amend an 

existing credit of $0.0025 per share 

executed for orders that are routed using 

the ‘‘SCAR’’ routing option 4 and which 

ultimately execute on Nasdaq BX, Inc. 

(‘‘BX’’). 

Amend Existing Credit for Adding 

Liquidity in Tape B Securities 

First, the Exchange proposes to 

amend an existing credit of $0.0030 per 

share executed to a member with shares 

of liquidity provided in all securities 

through one or more of its Nasdaq 

Market Center MPIDs that represent 

1.30% or more of Consolidated 

Volume 5 during the month, which 

includes shares of liquidity provided 

with respect to securities that are listed 

on exchanges other than Nasdaq or 

NYSE (‘‘Tape B Securities’’) that 

represent 0.40% or more of 

Consolidated Volume. 

The Exchange proposes to lower the 

liquidity adding threshold for the credit 


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