Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Notices 77587 

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

2 17 CFR 240.19b–4. 

3The Order Entry Port Fee is a connectivity fee 

in connection with routing orders to the Exchange 

via an external order entry port. NOM Participants 

access the Exchange’s network through order entry 

ports. A NOM Participant may have more than one 

order entry port. 

4CTI offers real-time clearing trade updates. A 

real-time clearing trade update is a message that is 

sent to a member after an execution has occurred 

and contains trade details. The message containing 

the trade details is also simultaneously sent to The 

Options Clearing Corporation. The trade messages 

are routed to a member’s connection containing 

certain information. The administrative and market 

event messages include, but are not limited to: 

System event messages to communicate 

operational-related events; options directory 

messages to relay basic option symbol and contract 

information for options traded on the Exchange; 

complex strategy messages to relay information for 

those strategies traded on the Exchange; trading 

action messages to inform market participants when 

a specific option or strategy is halted or released for 

trading on the Exchange; and an indicator which 

distinguishes electronic and non-electronically 

delivered orders. 

5OTTO provides a method for subscribers to send 

orders and receive status updates on those orders. 

OTTO accepts limit orders from system subscribers, 

and if there is a matching order, the orders will 

execute. Non-matching orders are added to the limit 

order book, a database of available limit orders, 

where they are matched in price-time priority. 

6 ITTO is a data feed that provides quotation 

information for individual orders on the NOM book, 

last sale information for trades executed on NOM, 

and Order Imbalance Information as set forth in 

NOM Rules chapter VI, section 8. ITTO is the 

options equivalent of the NASDAQ TotalView/

ITCH data feed that NASDAQ offers under 

NASDAQ Rule 7023 with respect to equities traded 

on NASDAQ. As with TotalView, members use 

ITTO to ‘‘build’’ their view of the NOM book by 

adding individual orders that appear on the feed, 

and subtracting individual orders that are executed. 

See chapter VI, section 1 at subsection (a)(3)(A). 

7BONOSM is a data feed that provides the NOM 

Best Bid and Offer (‘‘NOM NBBO’’) and last sale 

information for trades executed on NOM. The NOM 

NBBO and last sale information are identical to the 

information that NOM sends to the Options Price 

Regulatory Authority (‘‘OPRA’’) and which OPRA 

disseminates via the consolidated data feed for 

options. BONO is the options equivalent of the 

NASDAQ Basic data feed offered for equities under 

NASDAQ Rule 7047. See Chapter VI, Section 1 at 

subsection (a)(3)(B). 

8The DROP interface provides real time 

information regarding orders sent to NOM and 

executions that occurred on NOM. The DROP 

interface is not a trading interface and does not 

accept order messages. 

9The OTTO DROP data feed provides real-time 

information regarding orders entered through OTTO 

and the execution of those orders. The OTTO DROP 

data feed is not a trading interface and does not 

accept order messages. 

10SQF ports are ports that receive inbound quotes 

at any time within that month. The SQF Port allows 

a NOM Participant to access information such as 

execution reports and other relevant data through 

a single feed. For example, this data would show 

which symbols are trading on NOM and the current 

state of an options symbol (i.e., open for trading, 

trading, halted or closed). Auction notifications and 

execution reports are also available. NOM Market 

Makers rely on data available through the SQF Port 

to provide them the necessary information to 

perform market making activities. 

11A mnemonic is a unique identifier consisting 

of a four character alpha code. 

12Account numbers are assigned by the Exchange 

and associated with particular NOM Participants. 

13 15 U.S.C. 78f. 

14 15 U.S.C. 78f(b)(4) and (5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73879; File No. SR– 

NASDAQ–2014–122] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Port Fees 

December 18, 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 

12, 2014, 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 NASDAQ. 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 

NASDAQ proposes to amend the 

manner in which the Exchange assesses 

Port Fees which are located in chapter 

XV, entitled ‘‘Options Pricing,’’ which 

governs pricing for NASDAQ members 

using the NASDAQ Options Market 

(‘‘NOM’’), NASDAQ’s facility for 

executing and routing standardized 

equity and index options. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated the amendments become 

operative on January 2, 2015. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaq.cchwallstreet. 

com, at the principal office of the 

Exchange, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change. 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 proposes to increase 

Port Fees for the following ports from 

$550.00 to $600.00 per port, per month, 

per mnemonic: Order Entry Ports,3 CTI 

Ports,4 OTTO Ports,5 ITTO Ports,6

BONO Ports,7 Order Entry DROP Ports,8

OTTO Drop Ports 9 and SQF Ports 10

(collectively ‘‘NOM Ports’’). ITTO and 

BONO Port fees will continue to be 

assessed to non-NOM Participants and 

NOM Participants. 

Each NOM Participant is assigned a 

Market Participant Identifier or 

‘‘mnemonic’’ 11 and in some cases, 

certain NOM Participants request 

multiple mnemonics for purposes of 

accounting for trading activity. These 

mnemonics identify users at a particular 

NOM Participant. The Exchange bills its 

port fees based on the number of 

mnemonics configured for each port. By 

way of example, if a NOM Participant, 

ABC, requested 2 ports from the 

Exchange and further requested that 

each port be configured to be accessed 

by 4 mnemonics or in some cases 

account numbers,12 the NOM 

Participant would be billed for 8 ports 

at the rate of $550 per port for that 

month. All billing is captured at the 

Participant level. NOM Participants may 

choose to have multiple mnemonics or 

in some case multiple account numbers 

for the convenience of conducting their 

business, however only one mnemonic 

and one account number is required to 

conduct business on NOM. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of section 6 of the Act,13 in 

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

6(b)(5) of the Act,14 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and issuers and 

other persons using any facility or 

system which NASDAQ operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that increasing 

the fees for the NOM Ports from $550 to 

$600 per port, per month, per 

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77588 Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Notices 

15Miami International Securities Exchange LLC 

(‘‘MIAX’’) assesses ports fees that range from $1,000 

to $5,000 depending on connectivity levels. See 

MIAX’s Fee Schedule. ISE Gemini, LLC (‘‘ISE 

Gemini’’) assesses port fees that range from $750– 

$12,500 depending on connectivity levels. See ISE 

Gemini’s Fee Schedule. Finally, C2 Options 

Exchange, Incorporated (‘‘C2’’) assesses port fees 

that range from $500—$1,000 depending on 

connectivity levels. See C2’s Fee Schedule. 16 15 U.S.C. 78s(b)(3)(A)(ii). 17 17 CFR 200.30–3(a)(12). 

mnemonic is reasonable because it 

would allow the Exchange to keep pace 

with increasing technology costs. The 

increased Port Fees reflect the increased 

costs that the Exchange bears with 

respect to maintaining ports. The Port 

Fees are reasonable because they enable 

the Exchange to offset, in part, its 

connectivity costs associated with 

making such ports available, including 

costs based on gateway software and 

hardware enhancements and resources 

dedicated to gateway development, 

quality assurance, and support. The 

Exchange’s Port Fees are in line with 

costs for ports at other options 

exchanges.15

The Exchange believes that increasing 

the fees for the NOM Port Fees from 

$550 to $600 per port, per month, per 

mnemonic is equitable and not unfairly 

discriminatory because the Exchange 

assesses the same fees for all ports to all 

NOM participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ 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. The Exchange 

believes the proposed fee change is 

reasonably designed to be fair and 

equitable, and therefore, will not unduly 

burden any particular group of market 

participants trading on the Exchange. 

The Exchange’s proposal increases fees 

for all ports for all NOM Participants. 

The proposed fees are designed to 

ensure a fair and reasonable use of 

Exchange resources by allowing the 

Exchange to recoup for certain of its 

connectivity costs, while continuing to 

offer competitive rates to NOM 

Participants. 

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.16 At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2014–122 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–2014–122. 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 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; 

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–2014–122 and 

should be submitted on or before 

January 14, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–30122 Filed 12–23–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

In the Matter of Treaty Energy 

Corporation; Order of Suspension of 

Trading 

December 22, 2014. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Treaty 

Energy Corporation (‘‘Treaty Energy’’) 

because it has not filed a periodic report 

since its Form 10–Q for the period 

ending September 30, 2013. Treaty 

Energy is a Nevada corporation based in 

New Orleans, Louisiana, and its 

common stock is quoted on the OTC 

Link (previously ‘‘Pink Sheets’’) 

operated by OTC Markets Group, Inc. 

under the ticker symbol TECO. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

company. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of Treaty Energy Corporation 

is suspended for the period from 9:30 

a.m. EST on December 22, 2014, 

through 11:59 p.m. EST on January 6, 

2015. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2014–30296 Filed 12–22–14; 11:15 am] 

BILLING CODE 8011–01–P 

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