2460 Federal Register / Vol. 80, No. 11 / Friday, January 16, 2015 / Notices 

17 15 U.S.C. 78s(b)(2). 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3NOM is a facility of NASDAQ. 

4The Exchange, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’), and NASDAQ OMX BX, Inc. (‘‘BX’’) are 

self-regulatory organizations (‘‘SROs’’) that are 

wholly owned subsidiaries of The NASDAQ OMX 

Group, Inc. (‘‘NASDAQ OMX’’). The Exchange, 

NOM (a facility of the Exchange), BX, BX Options 

(a facility of BX), Phlx, and PSX (a facility of Phlx) 

(together with the Exchange known as the 

‘‘NASDAQ Markets’’), are independently filing 

proposals to conform their respective Extranet 

Access Fee rules to NASDAQ Rule 7025. 

5As defined in proposed NOM Chapter XV, 

Section 12, 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 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 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 describing 

that the Extranet Access Fee is $750). See also 

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 describing that no fee is charged at the 

time of the filing). 

8As noted, the NASDAQ Markets are 

independently filing proposals to conform their 

respective Extranet Access Fee. 

9However, the proposed Section 12 language 

does not, because it deals with options, indicate 

that consolidated data includes data disseminated 

by the UTP SIP (as noted in NASDAQ Rule 7025). 

the public could more easily navigate 

the Exchange’s rulebook and better 

understand what obligations attach and 

when. Further, updating the Exchange’s 

rules to remove what the Exchange 

considers redundant requirements also 

would protect investors as well as the 

public interest by providing 

transparency and reducing potential 

confusion regarding the Exchange 

membership process that may result 

from having what the Exchange 

characterizes as obsolete rules and 

outdated guidelines in the Exchange’s 

rulebook. For the same reasons, 

updating the Exchange’s rules to remove 

requirements that the Exchange 

considers outdated would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and is 

equally designed to protect investors as 

well as the public interest. 

Based on the foregoing, the 

Commission finds the proposed rule 

change is consistent with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,17 that the 

proposed rule change (SR–NYSEMKT– 

2014–97) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00579 Filed 1–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74040; File No. SR– 

NASDAQ–2015–003] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding the 

Extranet Access Fee 

January 13, 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 January 5, 

2015, 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 add new 

NASDAQ Options Market (‘‘NOM’’) 3

Chapter XV, Section 12 to the 

Exchange’s Options Pricing Schedule 

(‘‘Pricing Schedule’’), which includes 

description about the applicability of 

the Extranet Access Fee. This will 

conform the Exchange’s Pricing 

Schedule to that of other markets. 

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 purpose of the proposal is to add 

new NOM Chapter XV, Section 12 

entitled ‘‘Extranet Access Fee’’ to the 

Pricing Schedule, which includes 

description about the applicability of 

the Extranet Access Fee. This will 

conform the Exchange’s Pricing 

Schedule to that of other markets.4

Specifically, the Exchange proposes to 

establish the Extranet Access Fee in 

proposed new NOM Chapter XV, 

Section 12 to indicate that certain nonExchange 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. This 

proposal conforms the Extranet Access 

Fee in NOM Chapter XV, Section 12 to 

the equivalent fee in NASDAQ Rule 

7025. 

The Extranet Access Fee was 

introduced a decade ago on NASDAQ 

Rule 7025 as an equity fee.6 The 

Extranet Access Fee was introduced 

about five years ago in on BX and about 

year ago on PSX.7 By this proposal, the 

Exchange normalizes the cost and 

structure of its Extranet Access Fee on 

NOM to that of the equivalent decadeold NASDAQ fee.8

Proposed NOM Chapter XV, Section 

12 indicates the same fee as NASDAQ 

Rule 7025, namely $1,000 per CPE 

Configuration, and adds verbatim 

language from NASDAQ Rule 7025 that 

explains the application of the fee.9 As 

proposed, NOM Chapter XV, Section 12 

will read as follows: ‘‘Extranet providers 

that establish a connection with Nasdaq 

to offer direct access connectivity to 

market data feeds shall be assessed a 

monthly access fee of $1,000 per 


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Federal Register / Vol. 80, No. 11 / Friday, January 16, 2015 / Notices 2461 

10The Exchange notes that while NOM Chapter 

XV, Section 12 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. The Exchange 

notes that the statement that extranet providers 

shall be assessed a total monthly access fee of 

$1,000 per recipient CPE Configuration is not in 

NASDAQ Rule 7025. 

11The Exchange will inform extranet providers of 

their reporting responsibilities via its public Web 

site. This will include, as an example, reporting 

CPE usage. 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4). 

14For example, NASDAQ Technology Services, a 

subsidiary of the Exchange, pays the applicable 

fee(s) to the Exchange for services covered under 

the Extranet Access Fee. 

recipient Customer Premises Equipment 

(‘‘CPE’’) Configuration. 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. For purposes of this 

Section 12, 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 Nasdaq 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. Extranet providers 

that establish a connection with Nasdaq 

pursuant to this Section 12 as well as a 

connection with Nasdaq pursuant to 

Nasdaq Rule 7025 shall be assessed a 

total monthly access fee of $1,000 per 

recipient CPE Configuration.’’ The 

proposal conforms NOM Chapter XV, 

Section 12 to NASDAQ Rule 7025, and 

makes them substantively identical.10

The proposal also makes it clear that if 

an extranet provider establishes an 

extranet connection on PSX [sic] as well 

as on Phlx [sic], the extranet provider 

will not need to pay a double $1,000 

monthly access fee per CPE, but rather 

only one total monthly access fee of 

$1,000 per CPE. In addition, as 

discussed, there is an equity market and 

an options market under the NASDAQ 

SRO license. This proposal brings the 

Extranet Access Fee per NASDAQ Rule 

7025 on the equity side to the options 

side per NOM Chapter XV, Section 12 

in conformity with NASDAQ Rule 7025. 

The 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. 

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.11 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 

descriptions to conform the language of 

NOM Chapter XV, Section 12 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. 

These proposed descriptions should 

serve to reduce any confusion as to the 

applicability of the Extranet Access Fee. 

Moreover, the descriptions would make 

the Exchange’s Extranet Access Fee in 

NOM Chapter XV, Section 12 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,12 in general, and 

with Section 6(b)(4) of the Act,13 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 add the Extranet Access Fee 

in NOM Chapter XV, Section 12, and to 

describe 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.14 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 conforms similarlysituated Extranet Access Fee rules on 

NOM options and NASDAQ equities. 

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, proposed NOM Chapter 

XV, Section 12 contains description 

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. This 

description should serve to reduce any 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
2462 Federal Register / Vol. 80, No. 11 / Friday, January 16, 2015 / Notices 

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

16 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. 

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. 

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,15 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– 

NASDAQ–2015–003 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–2015–003. 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–2015–003, and should be 

submitted on or before February 6, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00625 Filed 1–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74031; File No. SR–NYSE– 

2014–78] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending Its 

Price List Relating to Fees for Bond 

Trading License Firms 

January 12, 2015. 

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 

29, 2014, New York Stock Exchange 

LLC (‘‘NYSE’’ 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 selfregulatory 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 its 

Price List, effective January 1, 2015, to 

(i) waive new firm application fees for 

applicants seeking only to obtain a bond 

trading license (‘‘BTL’’) for 2015 and 

2016; (ii) establish a separate Regulatory 

Fee for member organizations that solely 

operate under a BTL; and (iii) waive the 

BTL fee for 2015 and 2016. The text of 

the proposed rule change is available on 

the Exchange’s Web site 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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES