1464 Federal Register / Vol. 80, No. 6 / Friday, January 9, 2015 / Notices 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3PSX is a facility of Phlx. 

4The Exchange, NASDAQ OMX BX, Inc. (‘‘BX’’), 

and The NASDAQ Stock Market (‘‘LLC’’) are selfregulatory organizations (‘‘SROs’’) that are wholly 

owned subsidiaries of The NASDAQ OMX Group, 

Inc. (‘‘NASDAQ OMX’’). NOM (a facility of the 

Exchange [sic]), BX, BX Options (a facility of BX), 

Phlx, and PSX (a facility of Phlx) (together with the 

Exchange known as the ‘‘NASDAQ Markets’’), 

intend to independently file proposals to conform 

their respective Extranet Access Fee rules to 

NASDAQ Rule 7025. 

5As defined in section VIII of the Pricing 

Schedule, a ‘‘Customer Premises Equipment 

Configuration’’ means any line, circuit, router 

package, or other technical configuration used by an 

extranet provider to provide a direct access 

connection to NASDAQ [sic] market data feeds to 

a recipient’s site. 6See Securities Exchange Act Release Nos. 50483 

(October 1, 2004), 69 FR 60448 (October 8, 2004) 

(SR–NASD–2004–118) (establishing the Extranet 

Access Fee on NASDAQ); and 71199 (December 30, 

2013), 79 FR 686 (January 6, 2014) (SR–NASD [sic]– 

2013–159) (notice of filing and immediate 

effectiveness increasing the Extranet Access Fee to 

$1,000). 

7See Securities Exchange Act Release No. 71236 

(January 6, 2014), 79 FR 1906 (January 10, 2014) 

(SR–Phlx–2014–01) (notice of filing and immediate 

effectiveness establishing the Extranet Access Fee 

on PSX, and clarifying that no fee is charged at the 

time of the filing). The Extranet Access Fee was also 

established on BX. See Securities Exchange Act 

Release Nos. 59615 (March 20, 2009), 74 FR 14604 

(March 31, 2009) (SR–BX–2009–005) (establishing 

the Extranet Access Fee on BX); and 71841 (April 

1, 2014), 79 FR 19129 (April 7, 2014) (SR–BX– 

2014–015) (notice of filing and immediate 

effectiveness clarifying that the Extranet Access Fee 

is $750). 

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 EDGX. 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–EDGX– 

2014–36 and should be submitted on or 

before January 30, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00135 Filed 1–8–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73988; File No. SR–Phlx– 

2014–81] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding the 

Extranet Access Fee 

January 5, 2015. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

23, 2014, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ 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 

section VIII (NASDAQ OMX PSX 3 Fees) 

of the Exchange’s Pricing Schedule 

entitled ‘‘Extranet Access’’ (‘‘Pricing 

Schedule’’), as well as to clarify the 

applicability of the Extranet Access Fee 

and thereby conform it to the equivalent 

fee of other markets. 

While changes to the Pricing 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated that they become operative 

on January 2, 2015. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxphlx.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 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 proposal is to 

amend section VIII of the Exchange’s 

Pricing Schedule, as well as to clarify 

the applicability of the Extranet Access 

Fee and thereby conform it to the 

equivalent fee of another market. This 

will conform the Exchange’s Pricing 

Schedule to that of other markets.4

Specifically, the Exchange proposes to 

modify section VIII of the Pricing 

Schedule to re-name Extranet Access as 

Extranet Access Fee and indicate that 

certain non-Exchange Customer 

Premises Equipment (‘‘CPE’’) Products 

shall be assessed a monthly access fee 

of $1,000 per CPE. The Exchange also 

proposes to conform the Extranet Access 

Fee to that of another market, 

specifically NASDAQ Rule 7025, by also 

indicating that if an extranet provider 

uses multiple CPE Configurations 5 to 

provide market data feeds to any 

recipient the monthly fee shall apply to 

each such CPE Configuration; and that 

no Extranet Access Fee will be charged 

for connectivity to market data feeds 

containing only consolidated data, 

which includes data disseminated by 

the Unlisted Trading Privileges 

Securities Information Processor (‘‘UTP 

SIP’’). This proposal conforms the 

Extranet Access Fee on PSX in section 

VIII of the Pricing Schedule to the 

equivalent fee in NASDAQ Rule 7025. 

The Extranet Access Fee was 

introduced a decade ago on NASDAQ 

Rule 7025.6 The Extranet Access Fee 

was introduced about a year ago on PSX 

in section VIII of the Pricing Schedule, 

but free of charge.7 By this proposal, the 

Exchange normalizes the cost and 

structure of its Extranet Access Fee to 

that of the equivalent decade-old 

NASDAQ fee. 

Section VIII of the Pricing Schedule 

currently indicates that extranet 

providers that establish a connection 

with the Exchange to offer direct access 

connectivity to market data feeds shall 

not be assessed a monthly access fee per 

recipient Customer Premises Equipment 

(CPE) Configuration. As noted, this 

proposal indicates the same fee as 

NASDAQ Rule 7025, namely $1,000 per 

CPE Configuration, and adds to section 

VIII of the Pricing Schedule verbatim 

clarifying language from NASDAQ Rule 

7025. As proposed, section VIII of the 

Pricing Schedule will read as follows: 

‘‘Extranet providers that establish a 

connection with the Exchange to offer 

direct access connectivity to market data 

feeds shall be assessed a monthly access 

fee of $1,000 per recipient Customer 

Premises Equipment (‘‘CPE’’) 

Configuration. If an extranet provider 

uses multiple CPE Configurations to 

provide market data feeds to any 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 6 / Friday, January 9, 2015 / Notices 1465 

8The Exchange notes that while section VIII of 

the Pricing Schedule and NASDAQ Rule 7025 each 

contain some language particular to the relevant 

exchange, with this proposal the language of the 

two rules is substantively identical. 

9Also, the Exchange is currently undergoing a 

technology refresh of the its options trading system, 

which will deploy state-of-the-art hardware and 

software architecture to achieve a more efficient 

and more robust infrastructure in support of the 

growing needs of our customers. 

10The Exchange will inform extranet providers of 

their reporting responsibilities via its public Web 

site. 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4). 

recipient, the monthly fee shall apply to 

each such CPE Configuration. For 

purposes of this rule, the term 

‘‘Customer Premises Equipment 

Configuration’’ shall mean any line, 

circuit, router package, or other 

technical configuration used by an 

extranet provider to provide a direct 

access connection to Exchange market 

data feeds to a recipient’s site. No 

extranet access fee will be charged for 

connectivity to market data feeds 

containing only consolidated data. For 

purposes of this rule, consolidated data 

includes data disseminated by the UTP 

SIP. Extranet providers that establish a 

connection with PSX pursuant to this 

section VIII of the Pricing Schedule as 

well as a connection with Phlx pursuant 

to section XIII of the Pricing [sic] 

Schedule shall be assessed a total 

monthly access fee of $1,000 per 

recipient CPE Configuration.’’ The 

proposal thus conforms section VIII of 

the Pricing Schedule to NASDAQ Rule 

7025, and makes them substantively 

identical.8 The proposal also makes it 

clear that if an extranet provider 

establishes an Extranet connection for 

equity business (PSX) as well as its 

options business, the extranet provider 

will not need to pay a double $1,000 

monthly access fee, but rather only one 

total monthly access fee of $1,000. 

The modified proposed Extranet 

Access Fee will, as on NASDAQ, be 

used to help recoup the Exchange’s 

costs associated with maintaining 

multiple extranet connections with 

multiple providers. These costs include 

those associated with overhead and 

technology infrastructure, 

administrative, maintenance and 

operational costs. Since the inception of 

Extranet Access there have been 

numerous network infrastructure 

improvements and administrative 

controls enacted. Additionally, the 

Exchange has implemented automated 

retransmission facilities for most of its 

data clients that benefit extranet clients 

by reducing operational costs associated 

with retransmissions.9

As the number of extranets has 

increased, the management of the 

downstream customers has expanded 

and the Exchange has had to ensure 

appropriate reporting and review 

processes, which has resulted in a 

greater cost burden on the Exchange 

over time. The proposed fee will also 

help to ensure that the Exchange is 

better able to closely review reports and 

uncover reporting errors via audits thus 

minimizing reporting issues.10 The 

network infrastructure has increased in 

order to keep pace with the increased 

number of products, which, in turn, has 

caused an increased administrative 

burden and higher operational costs 

associated with delivery via extranets. 

Thus, subsequent to the proposal 

extranet providers that establish a 

connection with the Exchange to offer 

direct access connectivity to market data 

feeds shall be assessed a monthly access 

fee of $1,000 per CPE Configuration. If, 

as discussed below, an extranet provider 

uses multiple CPE Configurations to 

provide market data feeds to any 

recipient, the monthly fee shall apply to 

each such CPE Configuration. 

The Exchange proposes two new 

clarifications to conform the language of 

section VIII of the Pricing Schedule to 

that of NASDAQ Rule 7025. 

Specifically, the Exchange proposes to 

indicate that if an extranet provider uses 

multiple CPE Configurations to provide 

market data feeds to any recipient, the 

monthly fee shall apply to each such 

CPE Configuration; and that no extranet 

access fee will be charged for 

connectivity to market data feeds 

containing only consolidated data. For 

purposes of this rule, consolidated data 

includes data disseminated by the UTP 

SIP. These proposed clarifications 

should serve to reduce any confusion as 

to the applicability of the Extranet 

Access Fee. Moreover, the clarifications 

would make the Exchange’s Extranet 

Access Fee in section VIII work the 

same as the equivalent fee in NASDAQ 

Rule 7025, and complete the effort to 

conform the two rules. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

section 6(b) of the Act,11 in general, and 

with section 6(b)(4) of the Act,12 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. 

The Exchange believes that its 

proposal to amend the Extranet Access 

Fee in section VIII of the Pricing 

Schedule, and to clarify the 

applicability of the Extranet Access Fee 

and thereby conform the fee with the 

equivalent fee on NASDAQ, is 

consistent with the Act. 

All similarly situated extranet 

providers, including the Exchange 

operating its own extranet, that establish 

an extranet connection with the 

Exchange to access market data feeds 

from the Exchange are subject to the 

same fee structure. The fee will help the 

Exchange to offset some of the rising 

overhead and technology infrastructure, 

administrative, maintenance and 

operational costs it incurs in support of 

the service. 

If such costs are covered, the service 

may provide the Exchange with a profit. 

As such, the Exchange believes that the 

proposed fee is reasonable and notes 

that this proposal represents the first 

change of the Extranet Access Fee since 

its introduction. The extranet costs are 

separate and different from the 

colocation facility that is able to recoup 

these fees by charging for servers within 

the associated data centers. 

Additionally, the Exchange believes that 

the proposed change is equitable and 

not unreasonably discriminatory. The 

monthly fee is assessed uniformly to all 

extranet providers that establish a 

connection with the Exchange to offer 

direct access connectivity to market data 

feeds, and is the same for all at $1,000 

per recipient CPE Configuration. Thus, 

any burden arising from the fees is 

necessary in the interest of promoting 

the equitable allocation of a reasonable 

fee. Moreover, firms make decisions on 

how much and what types of data to 

consume on the basis of the total cost of 

interacting with the Exchange or other 

markets and, of course, the Extranet 

Access Fee is but one factor in a total 

platform analysis. 

Additionally, section VIII of the 

Pricing Schedule will be clarified by 

stating that if an extranet provider uses 

multiple CPE Configurations to provide 

market data feeds to any recipient, the 

monthly fee shall apply to each such 

CPE Configuration; and that no Extranet 

Access Fee will be charged for 

connectivity to market data feeds 

containing only consolidated data, 

which for purposes of this rule includes 

data disseminated by the UTP SIP. This 

clarification should serve to reduce any 

confusion as to the applicability of this 

fee. 

The proposal 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 consistent 

with the Act. 


rljohnson on DSK3VPTVN1PROD with NOTICES
1466 Federal Register / Vol. 80, No. 6 / Friday, January 9, 2015 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(ii). 14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

The proposed fees are applied 

uniformly among extranet providers, 

which are not compelled to establish a 

connection with the Exchange to offer 

access connectivity to market data feeds. 

For these reasons, any burden arising 

from the fees is necessary in the interest 

of promoting the equitable allocation of 

a reasonable fee. Additionally, firms 

make decisions on how much and what 

types of data to consume on the basis of 

the total cost of interacting with the 

Exchange or other exchanges and, of 

course, the Extranet Access Fee is but 

one factor in a total platform analysis. 

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 

Pursuant to section 19(b)(3)(A)(ii) of 

the Act,13 the Exchange has designated 

this proposal as establishing or changing 

a due, fee, or other charge imposed by 

the self-regulatory organization on any 

person, whether or not the person is a 

member of the self-regulatory 

organization, which renders the 

proposed rule change effective upon 

filing. 

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– 

Phlx–2014–81 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–Phlx–2014–81. 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–Phlx– 

2014–81, and should be submitted on or 

before January 30, 2015.14

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00134 Filed 1–8–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73980; File No. SR–ICC– 

2014–24] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Revise the 

ICC Risk Management Framework 

January 5, 2015. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

22, 2014, ICE Clear Credit LLC (‘‘ICC’’) 

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 primarily by ICC. 

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 principal purpose of the 

proposed rule change is to revise the 

ICC Risk Management Framework to 

incorporate certain risk model 

enhancements. These revisions do not 

require any changes to the ICC Clearing 

Rules (‘‘Rules’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ICC 

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. ICC has prepared 

summaries, set forth in sections A, B 

and C below, of the most significant 

aspects of these statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

ICC proposes revising the ICC Risk 

Management Framework to incorporate 

risk model enhancements related to 

Recovery Rate Sensitivity Requirements 

(‘‘RRSR’’), anti-procyclicality, and ICC’s 

Guaranty Fund (‘‘GF’’) allocation 

methodology. ICC also proposes 

revisions which are intended to remove 

obsolete references and ensure 


rljohnson on DSK3VPTVN1PROD with NOTICES