Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices 75223 

6 15 U.S.C. 78s(b)(3)(a)[sic](ii). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Data Package is also commonly referred to 

as the Report Center. 

4See Securities Exchange Act Release No. 66078 

(January 3, 2012), 77 FR 1125 (January 9, 2012) (SR– 

NASDAQ–2011–173). 

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.6 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, as amended, 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–2014–111 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–2014–111. This 

file number should be included on the 

subject line if email is used. 

To help the Commission process and 

review your comments more efficiently, 

please use only one method. The 

Commission will post all comments on 

the Commission’s Internet Web site 

(http://www.sec.gov/rules/sro.shtml). 

Copies of the submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

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

filing also will be available for 

inspection and copying at the principal 

offices of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. 

All submissions should refer to File 

Number SR–NASDAQ–2014–111, and 

should be submitted on or before 

January 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29497 Filed 12–16–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73815; File No. SR– 

NASDAQ–2014–121] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7021 Fees 

December 11, 2014. 

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 December 

5, 2014, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

NASDAQ is proposing to modify fees 

assessed under NASDAQ Rule 7021 for 

the NasdaqTrader.com Trading and 

Compliance Data Package (‘‘Data 

Package’’). While the changes proposed 

herein are effective upon filing, the 

Exchange has designated that the 

amendments be operative on January 2, 

2015. 

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 

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 

7021 to increase the fee assessed for 

subscription to the Data Package and 

eliminate a little-used report.3 The Data 

Package allows member firms to obtain 

information regarding their own 

historical quoting and trading activity 

on NASDAQ. The Data Package also 

provides member firms with 

information concerning their 

compliance with NASDAQ and FINRA 

rules. When NASDAQ last increased the 

fees for the Data Package in February 

2012,4 the service provided subscribers 

the following reports: Monthly 

Compliance Report Cards, which 

outline a firm’s own compliance with 

various FINRA rules; Monthly 

Summaries, which provide monthly 

trading volume statistics for the top 50 

market participants broken down by 

industry sector, security or type of 

trading; and Historical Research 

Reports, which provide a variety of 

historical trading data such as a market 

maker’s quote updates, order activity, 

and detailed trade reporting 

information. Additionally, NASDAQ 

offered subscribers the ability to receive 

the detailed trade report (Equity Trade 

Journal) via a secure FTP dissemination 

as an option. These reports, which 

continue to be offered as part of Data 

Package, are based on the subscribing 

member firm’s historical trade 

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75224 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices 

5See http://www.nasdaqtrader.com/

trader.aspx?id=reportcenter. 

6QView provides a member firm with the ability 

to track its order flow on NASDAQ, and view both 

real-time data and download reports of such order 

flow. See Rule 7058. Data Package offers QView 

historical data, but not real-time reports of order 

flow. 

7FINRA offers Equity Report Cards, which allow 

firms to track their compliance with equity trading 

rules related to OATS, best execution, market order 

timeliness, trade reporting, Reg NMS Trade 

Throughs, and the NASDAQ Market Center. See 

http://www.finra.org/Industry/Compliance/

ReportCenter/P015063. 

8Supra note 4. 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(4) and (5). 

information taken from NASDAQ and 

the FINRA/NASDAQ Trade Reporting 

Facility. 

NASDAQ has continued to enhance 

what is offered in the Data Package to 

make it a more useful tool to member 

firms.5 In this regard, NASDAQ now 

provides the following new historical 

reports, which do not count toward the 

25 and 100 monthly report limits under 

the rule when accessed: Execution 

Invoice Detail, which provides a 

member firm with enhanced detail of its 

executions; Month to Date Invoice 

Summary, which provides a member 

firm with a summary of its trading at 

any point in the month; Excessive 

Messaging Invoice Detail, which 

informs a member firm of whether its 

order activity at any point in a month 

will qualify for the Excess Order Fee 

under Rule 7018(m); Investor Support 

Program Invoice Detail, which informs a 

member firm of whether its order 

activity at any point in the month will 

qualify for the Investor Support Program 

under Rule 7014; and Qualified Market 

Maker Invoice Detail, which informs a 

member firm of whether its order 

activity at any point in the month will 

qualify for the Qualified Market Maker 

Program under Rule 7014. In addition, 

NASDAQ has enhanced the service with 

the following new reports, which do 

count toward the 25 and 100 monthly 

report limits under the rule when 

accessed: NASDAQ Order Execution 

and Routing, which provides a detailed 

daily summary of a member firm’s 

executions on NASDAQ and those 

routed to other markets; Market Recap, 

which provides a daily snapshot in a 

timeline format of all market events 

occurring during the day, such as 

trading halts and limit up/limit down 

pauses; QView 6 Historical Reports, 

which provide both daily and monthly 

summaries of trading based on volume, 

routing strategy, and order type; and 

Real-Time Registered Market Maker 

Report, which provides a market maker 

with a real-time assessment of whether 

it is meeting its market making 

obligations in the securities for which it 

is a market maker. NASDAQ is also 

proposing to eliminate the Monthly 

Compliance Report Card report from the 

service. NASDAQ notes that the report 

is not used significantly by subscribers 

to the service. In addition to having very 

little demand, the Monthly Compliance 

Report Card is similar to reports offered 

by FINRA at no cost.7 NASDAQ 

currently offers two monthly Data 

Package subscriptions: a basic 

subscription of $175 providing up to 25 

reports per month; and a premium 

subscription of $225 providing up to 

100 reports per month. As noted above, 

NASDAQ last increased the fee for Data 

Package in February 2012,8 and since 

then has enhanced the service with 

several new reports noted above. 

NASDAQ is proposing to increase the 

monthly fee assessed for up to 100 

reports from $225 to $250 to cover the 

costs associated with enhancing and 

offering the service, and to ensure that 

the service continues to provide 

NASDAQ with a profit. In addition to 

increasing the fee assessed for the 100 

report subscription, NASDAQ is 

proposing to eliminate the basic level 

subscription. As described above, 

NASDAQ has substantially increased 

the number of reports available to 

subscribers, including those that count 

against the monthly report limits of the 

two fee tiers. As a consequence, 

NASDAQ has observed that the lower 

tier provides an inadequate number of 

reports to be useful to most subscribers. 

Accordingly, NASDAQ is proposing to 

eliminate the lower tier. 

Lastly, NASDAQ is proposing to 

rename the service as the NASDAQ 

Report Center. NASDAQ notes that the 

service is commonly referred to as the 

Report Center, and changing the name 

to reflect the commonly-used name will 

avoid any market participant confusion 

caused by the two names. Moreover, 

NASDAQ believes that the proposed 

new name is more reflective of the 

nature of the service. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,9 in 

general, and with Sections 6(b)(4) and 

6(b)(5) of the Act,10 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 the Exchange operates or 

controls, and is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest; and 

are not designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

NASDAQ believes that the proposed 

increase to the fee assessed under the 

rule is reasonable because it will allow 

NASDAQ to realign the fees assessed for 

the service with the costs it incurs in 

offering and enhancing it, while also 

ensuring that NASDAQ continues to 

realize a profit. The Exchange notes that 

it has substantially enhanced the service 

since the last time the fee was increased. 

Moreover, eliminating the lower tier is 

reasonable because NASDAQ has 

observed that the 25 report limit is too 

low for most member firms given the 

expansion of reports available to them 

through the service. As a consequence, 

the lower tier has limited applicability, 

yet represents a cost to NASDAQ in 

monitoring and administering the fee in 

relation to a subscriber’s usage. 

NASDAQ believes that the increased 

fee and elimination of the lower fee tier 

is an equitable allocation because the 

increased fee will apply to all 

subscribers uniformly. NASDAQ notes 

that under the proposed changes 

member firms currently subscribing to 

the lower tier will experience a greater 

fee increase than those currently 

subscribing to the higher tier. NASDAQ 

believes elimination of the lower tier is 

equitable because the limited number of 

member firms that subscribe to the 

lower tier will receive the benefit of a 

substantially increased monthly report 

limit. 

The Exchange believes that the 

proposed changes are not unfairly 

discriminatory because they now apply 

a uniform fee per subscription, thus 

eliminating a distinction made in the fee 

assessed based on the number of reports 

available per month. The Exchange 

notes that some member firms may 

incur a disproportionate increase in fees 

as compared to others under the 

proposed change as a result of the 

elimination of the lower tier 

subscription. The Exchange does not 

believe that this change is unfairly 

discriminatory because it eliminates a 

distinction in the fee assessed based on 

the number of reports, which is of 

declining applicability and use, and 

provides all member firms with the 

same level of service at the same cost. 

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Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices 75225 

11 15 U.S.C. 78f(b)(8). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f). 14 17 CFR 200.30–3(a)(12). 

As noted, NASDAQ incurs costs in 

monitoring a subscribing member firm’s 

report limit and in administering the 

fee. Consequently, reducing the number 

of fee tiers will reduce NASDAQ’s costs, 

thereby allowing NASDAQ to keep the 

fee lower than it would otherwise be. In 

addition, NASDAQ does not believe that 

elimination of the Monthly Compliance 

Report Card reports from the service is 

unfairly discriminatory. As noted, the 

report is used very little by subscribing 

member firms and any member firm that 

seeks similar information may obtain 

similar reports from FINRA at no cost. 

Lastly, NASDAQ believes that the 

proposed name change will avoid any 

market participant confusion due to the 

name of the service used in the rule and 

the commonly-used name. NASDAQ 

notes that the proposed change does not 

affect what is offered by the service in 

any way. 

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.11 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. In such an environment, 

NASDAQ must carefully balance the 

fees it assesses with the costs incurred 

to remain competitive with other 

exchanges. To the extent NASDAQ’s 

fees are too high or another exchange’s 

products and services provide greater 

value, NASDAQ will likely lose 

subscriber revenue. As such, NASDAQ 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. In this instance, NASDAQ last 

increased the Data Package fees in 

February 2012 and NASDAQ is now 

realigning the fee assessed for the 

subscription to the service with the 

costs it incurs in offering it. Such costs 

include adding enhancements to the 

service to make it more useful to 

subscribers. Moreover, increasing the 

fees also allows NASDAQ to continue to 

derive a profit from the service, which 

will allow NASDAQ to continue to offer 

the service in the long term. Moreover, 

NASDAQ believes that the fee increase 

does not impose a burden on 

competition because the service is 

optional and member firms may develop 

their own alternatives to the service or 

acquire similar functionality through 

third parties. For these reasons, 

NASDAQ does not believe that the 

proposed changes will impose any 

unnecessary burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing change has become 

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

of the Act,12 and paragraph (f) 13 of Rule 

19b–4, thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2014–121 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–2014–121. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

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

filing also will be available for 

inspection and copying at the principal 

offices of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2014–121, and should be 

submitted on or before January 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29511 Filed 12–16–14; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: 30-Day notice. 

SUMMARY: The Small Business 

Administration (SBA) is publishing this 

notice to comply with requirements of 

the Paperwork Reduction Act (PRA) (44 

U.S.C. Chapter 35), which requires 

agencies to submit proposed reporting 

and recordkeeping requirements to 

OMB for review and approval, and to 

publish a notice in the Federal Register 

notifying the public that the agency has 

made such a submission. This notice 

also allows an additional 30 days for 

public comments. 

DATES: Submit comments on or before 

January 16, 2015. 

ADDRESSES: Comments should refer to 

the information collection by name and/ 

or OMB Control Number and should be 

sent to: Agency Clearance Officer, Curtis 

Rich, Small Business Administration, 

409 3rd Street SW., 5th Floor, 

Washington, DC 20416; and SBA Desk 

Officer, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, New 

Executive Office Building, Washington, 

DC 20503. 

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