Federal Register / Vol. 80, No. 12 / Tuesday, January 20, 2015 / Notices 2763 

18See id. Alternatively, the underwriter may, 

with the concurrence of the Exchange, determine to 

postpone and reschedule the IPO. See id. 19See id. 20The Exchange states that the information 

provided by the IPO Indicator is limited to the 

subscribing member firm’s orders. See id. 21See supra note 4 and accompanying text. 22See Notice, supra note 3, at 71491. 23See id. 24See id. 25 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

26 15 U.S.C. 78f(b)(5). 

27 15 U.S.C. 78f(b)(8). 

28See supra note 4 and accompanying text. 

29See Notice, supra note 3 at 71492. The 

Exchange notes that not all member firms subscribe 

to the NASDAQ Workstation and prospective users 

of the IPO indicator may not desire to pay for a full 

NASDAQ Workstation subscription for the sole 

purpose of assessing the IPO indicator. 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5A Member is defined as ‘‘any registered broker 

or dealer that has been admitted to membership in 

the Exchange.’’ See Exchange Rule 1.5(n). 

Period will continue until all 

requirements are met.18

The Exchange proposes to offer the 

IPO Indicator to provide information 

about the number and price at which 

shares of a member firm’s orders entered 

for execution in an IPO Halt Cross (‘‘IPO 

shares’’) would execute in an IPO if it 

were to price at the present time.19

Under the proposal, the IPO Indicator 

will now be offered as a stand-alone 

service and would use the NOII 

information of an IPO security together 

with information about the member 

firm’s orders on NASDAQ in the IPO 

security.20 The Exchange notes that, 

similar to accessing the IPO Indicator 

from the NASDAQ Workstation as the 

Exchange currently offers,21 subscribing 

member firms will be able to access the 

IPO Indicator from the main IPO 

Workstation screen.22 Under the 

proposal, the Exchange states that 

member firms using the IPO Indicator 

would be able to see the Current 

Reference Price, the number of paired 

shares, the number of imbalance shares, 

the total number of IPO shares the 

subscribing member firm has entered for 

execution in the IPO Halt Cross, the 

nature of such shares (buy or sell), and 

the number of IPO shares that would be 

executed in the Halt Cross at that time 

for each of those categories.23 In 

addition, the Exchange states that 

subscribing member firms using the IPO 

Indicator would also be able to see 

details about its IPO shares presented by 

individual orders or order blocks, which 

would include the number of IPO shares 

in a particular order or order block, the 

number and percentage of IPO shares of 

the order or order block that would be 

executed in the Halt Cross if it occurred 

at any given time in the process, based 

on the NOII disseminated every five 

seconds, and the price at which the 

order or order block was submitted.24

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.25 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,26 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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 

Section 6(b)(8) of the Act,27 which 

requires that the rules of the exchange 

do not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

As described above, the Exchange 

proposes to adopt Exchange Rule 

7015(i) to offer stand-alone access to the 

IPO Indicator. The Commission notes 

that it recently approved a proposed 

rule change that allows the Exchange to 

provide the IPO Indicator through the 

NASDAQ Workstation.28 Offering the 

IPO indicator through the IPO 

Workstation will provide all member 

firms that are interested in subscribing 

to the IPO indicator a means to access 

it, at no cost at this time, in lieu of 

paying for a full NASDAQ Workstation 

subscription.29 Accordingly, the 

Commission believes that the proposed 

rule change adopting the IPO 

Workstation is designed to protect 

investors and the public interest by 

providing member firms with more 

information regarding their orders 

submitted for participation in an IPO 

Halt Cross. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–NASDAQ– 

2014–110) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00700 Filed 1–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74043; File No. SR–BATS– 

2015–01] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

January 13, 2015. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on January 2, 

2015, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) 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 by the Exchange. The 

Exchange has designated the proposed 

rule change as one establishing or 

changing a member due, fee, or other 

charge imposed by the Exchange under 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposed rule change 

effective upon filing with the 

Commission. 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 

The Exchange filed a proposal to 

amend the fee schedule applicable to 

Members 5 and non-members of the 

Exchange pursuant to BATS Rules 

15.1(a) and (c). Changes to the fee 

schedule pursuant to this proposal are 

effective upon filing. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.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 


rljohnson on DSK3VPTVN1PROD with NOTICES
2764 Federal Register / Vol. 80, No. 12 / Tuesday, January 20, 2015 / Notices 

6See Securities Exchange Act Release No. 73237 

(September 26, 2014), 79 FR 59537 (October 2, 

2014) (SR–BATS–2014–043). 

7As defined in Rule 11.25(a)(2), a ‘‘Retail Order’’ 

is an agency or riskless principal order that meets 

the criteria of FINRA Rule 5320.03 that originates 

from a natural person and is submitted to the 

Exchange by a Retail Member Organization, 

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. 

A Retail Member Organization or ‘‘RMO’’ is a 

Member (or a division thereof) that has been 

approved by the Exchange under Rule 11.25 to 

submit Retail Orders. 

8TCV means total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply. The Exchange excludes from its 

calculation of TCV volume on any day that the 

Exchange experiences an Exchange System 

Disruption, on any day with a scheduled early 

market close and the Russell Reconstitution Day. 

9Step-Up Add TCV means ADAV as a percentage 

of TCV in January 2014 subtracted from current 

ADAV as a percentage of TCV. 10 15 U.S.C. 78f. 11 15 U.S.C. 78f(b)(4) and (5). 

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 parts 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 modify its 

fee schedule effective immediately in 

order to: (1) Adopt pricing for Retail 

Orders, as defined below, on the 

Exchange, including a new Retail Order 

Tier; (2) add Membership Fees; and (3) 

make certain non-substantive clean-up 

changes to the fee schedule. 

Retail Order Pricing 

The Exchange recently adopted rules 

related to the Exchange’s Retail Order 

Attribution Program.6 Under such 

program, the Exchange allows Members 

to designate Retail Orders 7 that they 

enter to be identified as being Retail 

Orders on the Exchange’s proprietary 

data feeds. Not all Retail Orders entered 

by a Member will be identified as being 

a Retail Order, but rather a Retail Order 

will only be displayed on the 

Exchange’s proprietary data feeds as a 

Retail Order where the Member 

designates that the order be identified as 

such. There are not currently any 

pricing incentives for participation in 

the Retail Order Attribution Program. 

The Exchange proposes to introduce 

new fee codes ZA and ZR in order to 

provide pricing specific to Retail Orders 

executed on the Exchange. The 

Exchange notes that such proposed 

pricing would apply to all Retail Orders 

and that a Retail Order would not need 

to be attributable in order to receive the 

proposed pricing. The Exchange is 

proposing new fee code ZA to apply to 

Retail Orders that add liquidity to the 

Exchange. A transaction with fee code 

ZA is proposed to be assigned a rebate 

of $0.0032 per share. The Exchange is 

also proposing new fee code ZR to apply 

to Retail Orders that remove liquidity 

from the Exchange. A transaction with 

fee code ZR and is proposed to be 

assigned a charge of $0.0030 per share, 

which is the same as the standard fee for 

removing liquidity from the Exchange. 

Proposed fee codes ZA and ZR will only 

apply to Retail Orders that add or 

remove liquidity, respectively, in 

executions that occur on the Exchange. 

Where a Retail Order is routed, executes 

in an auction, or executes in the 

Opening or Re-Opening, the appropriate 

fee code will apply and proposed fee 

codes ZA and ZR will not apply. 

In addition to the proposed standard 

pricing for Retail Orders executed on 

the Exchange, the Exchange is also 

proposing to add a new Retail Order 

Tier. As proposed, the Exchange would 

offer a rebate of $0.0034 per share for 

adding liquidity for a Retail Order 

executed on the Exchange where the 

Member adds an average daily volume 

of Retail Orders (fee code ZA), that is 

0.07% or more of average daily TCV.8

Membership Fees 

The Exchange is also proposing to 

charge an Annual Membership Fee for 

Members of the Exchange of $2,500, 

which will support their Exchange 

membership for the calendar year. The 

fee will be charged per Member firm. 

Beginning in January 2015, the 

Exchange plans to charge an Annual 

Membership Fee which will be assessed 

on all Members as of a date determined 

by the Exchange in January of each year. 

For any month in which a firm is 

approved for membership with the 

Exchange after the January renewal 

period, the Annual Membership Fee 

will be pro-rated beginning on the date 

on which membership is approved and 

based on the number of remaining 

trading days in that year. The fee will 

be assessed in the month following 

membership approval. For example, if a 

firm applies and is accepted for 

membership with the Exchange on 

February 15, 2015, the new Member will 

be assessed a pro-rated Annual 

Membership Fee for the period 

beginning on February 15 through the 

end of 2015. The fee will be assessed in 

the next month’s billing cycle, which in 

this case, would be March 2015. Such 

fees will be non-refundable. However, 

where a Member is pending a voluntary 

termination of rights as a Member 

pursuant to Rule 2.8 prior to the date 

any Annual Membership Fee for a given 

year will be assessed (i.e., January 1, 

2015) and the Member does not utilize 

the facilities of the Exchange while such 

voluntary termination of rights is 

pending, then the Member will not be 

obligated to pay the Annual 

Membership Fee. The Exchange believes 

this to be appropriate because there is 

ordinarily a 30 day waiting period 

before such resignation shall take effect. 

Non-Substantive Changes 

Finally, the Exchange is proposing to 

make certain non-substantive clean-up 

changes to the fee schedule. Footnote 2 

relates to Step-Up Tiers in which 

displayed orders that add liquidity to 

the Exchange receive enhanced rebates 

where the Member meets certain 

thresholds related to a Member’s StepUp Add TCV.9 Footnote 2 currently 

states that it applies to fee codes B, V, 

and Y, however footnote 2 does not 

currently appear in the Fee Codes and 

Associated Fees table next to fee codes 

V and Y (but does appear next to fee 

code B). As such, the Exchange is 

proposing to add footnote 2 to fee codes 

V and Y in the Fee Codes and 

Associated Fees table in the fee 

schedule. This is a non-substantive 

change to the fee schedule because 

footnote 2 states that it applies to each 

of fee codes B, V, and Y and the 

Exchange is adding the footnote to fee 

codes V and Y in order to make the fee 

schedule as consistent as possible to 

indicate that footnote 2 should apply to 

those fee codes. 

The Exchange proposes to implement 

the amendments to its fee schedule 

effective January 2, 2015. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6 of the Act.10

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Sections 6(b)(4) of the Act and 

6(b)(5) of the Act,11 in that it provides 

for the equitable allocation of reasonable 

dues, fees and other charges among 

members and other persons using any 

facility or system which the Exchange 

operates or controls. The Exchange 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 12 / Tuesday, January 20, 2015 / Notices 2765 

12See, e.g., NASDAQ Rule 7001(a) (assessing an 

[sic] $3,000 annual membership fee); see also New 

York Stock Exchange Price List 2015, at https://

www.nyse.com/publicdocs/nyse/markets/nyse/

NYSE_Price_List.pdf (assessing a $40,000 annual 

trading license fee for the first two licenses held by 

a member organization). 13See id. 

notes that it operates in a highly 

competitive market in which market 

participants can readily direct order 

flow to competing venues if they deem 

fee levels at a particular venue to be 

excessive. 

The Exchange believes that the new 

Retail Order rebate and fee code 

associated with adding liquidity is 

reasonable and equitable because it will 

incentivize Members to submit orders 

designated as Retail Orders to the 

Exchange which will enhance liquidity 

in Retail Orders on the Exchange and 

further incentivize Members who wish 

to execute against Retail Orders to send 

additional orders to the Exchange. The 

Exchange believes that this increased 

liquidity would potentially stimulate 

further price competition for Retail 

Orders, thereby deepening the 

Exchange’s liquidity pool in both nonRetail and Retail Orders, supporting the 

quality of price discovery, and 

promoting market transparency, further 

rendering the proposal reasonable and 

equitable. The Exchange believes that 

the new Retail Order rebate is nondiscriminatory because it is equally 

available to all Members that enter 

Retail Orders. 

The Exchange believes that the new 

Retail Order fee code for removing 

liquidity is reasonable, equitable, and 

non-discriminatory because, as stated 

above, the fees associated with a Retail 

Order that removes liquidity on the 

Exchange is the same as the standard fee 

for removing liquidity for a non-Retail 

Order. The only difference is that the 

Exchange is now providing a more 

specific fee code in order to make it 

easier for Members to understand their 

monthly invoices, which the Exchange 

again believes makes the proposed 

change reasonable, equitable, and nondiscriminatory. 

The Exchange also believes that its 

proposed new Retail Order Tier and 

associated enhanced rebate are 

reasonable and equitable because the 

tiers based on added Retail Order 

volume is intended to reward those 

Members that and incentivize other 

Members to add a larger amount of 

volume in Retail Orders on the 

Exchange by providing an additional 

$0.0002 per share rebate for Members 

that have a add an average daily volume 

of Retail Orders that is 0.07% or more 

of average daily TCV. Further, the 

Exchange believes that the new Retail 

Order Tier is reasonable and equitable 

because it incentivizes and rewards 

Members for posting Retail Orders on 

the Exchange, which is consistent with 

the overall goal of enhancing market 

quality on the Exchange. The Exchange 

also believes that the proposed rebates 

[sic] associated with the tier is nondiscriminatory in that it is equally 

available to all Members and, again, 

because it is consistent with the goal of 

enhancing market quality on the 

Exchange. 

Volume-based rebates and fees such 

as the ones proposed by and maintained 

on the Exchange, including Step-Up 

Tiers, the cross-asset step-up tier, the 

cross-asset tier and the Retail Order Tier 

proposed herein, have been widely 

adopted in the cash equities markets 

and are equitable because they are open 

to all Members on an equal basis and 

provide additional benefits or discounts 

that are reasonably related to the value 

to an exchange’s market quality 

associated with higher levels of market 

activity, such as higher levels of 

liquidity provision and/or growth 

patterns, and introduction of higher 

volumes of orders into the price and 

volume discovery processes. The 

Exchange notes that it is not proposing 

to modify any existing tiers, but rather 

to add a new tier that will provide 

Members with additional ways to 

receive higher rebates, meaning that 

under the proposal, a Member will 

receive either the same or a higher 

rebate than they would receive today. 

Accordingly, the Exchange believes that 

the proposed additions to the 

Exchange’s tiered pricing structure and 

incentives are not unfairly 

discriminatory because they will apply 

uniformly to all Members and are 

consistent with the overall goals of 

enhancing market quality on the 

Exchange. 

The Exchange also believes that 

assessing an Annual Membership Fee 

provides an equitable allocation of 

reasonable dues, fees and other charges 

among its Members and other persons 

using its facilities. The Exchange makes 

all services and products subject to 

these fees available on a nondiscriminatory basis to similarly 

situated recipients. The Exchange 

believes that the Annual Membership 

Fee is a reasonable and equitable 

method of ensuring that its fees fund a 

greater portion of the cost of regulating 

activity on the Exchange, and that even 

after assessing these fees, the overall 

cost of Exchange membership is 

reasonable as compared with the costs 

of membership in other SROs.12 The 

Exchange believes that the proposed 

addition of an Annual Membership Fee 

is non-discriminatory in that it applies 

uniformly to all Members. 

Finally, the Exchange believes that 

the clarifying change that adds the 

footnote 2 to fee codes V and Y in the 

Fee Codes and Associated Fees table is 

reasonable as it will help to avoid 

confusion for those that review the 

Exchange’s fee schedule. The Exchange 

notes that the proposed change is not 

designed to amend any fee or rebate, nor 

alter the manner in which it assesses 

fees or calculates rebates. The Exchange 

believes that the proposed amendment 

is intended to make the fee schedule 

clearer and less confusing for investors 

and eliminate potential investor 

confusion, thereby removing 

impediments to and perfecting the 

mechanism of a free and open market 

and a national market system, and, in 

general, protecting investors and the 

public interest. 

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. 

To the contrary, the Exchange believes 

that the proposed changes will allow the 

Exchange to compete more ably with 

other execution venues by providing 

more competitive prices for Retail 

Orders that add liquidity in securities 

traded on the Exchange, thereby making 

it a more desirable destination venue for 

its customers. Also, because the market 

for order execution is extremely 

competitive, Members may readily opt 

to disfavor the Exchange’s routing 

services if they believe that alternatives 

offer them better value. 

The Exchange’s proposed 

membership fees will be lower than the 

cost of membership on other 

exchanges,13 and therefore, may 

stimulate intramarket competition by 

attracting additional firms to become 

Members on the Exchange. In addition, 

membership fees are subject to 

competition from other exchanges. 

Accordingly, if the changes proposed 

herein are unattractive to market 

participants, it is likely the Exchange 

will see a decline in membership and/ 

or trading activity as a result. The 

proposed fee change will not impact 

intermarket competition because it will 

apply to all Members equally. As stated 

above, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if the deem fee structures, 


rljohnson on DSK3VPTVN1PROD with NOTICES
2766 Federal Register / Vol. 80, No. 12 / Tuesday, January 20, 2015 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f). 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’), and The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) are self-regulatory organizations 

(‘‘SROs’’) that are wholly owned subsidiaries of The 

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

NOM (a facility of NASDAQ), 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. 

including Annual Membership Fees, to 

be unreasonable or excessive. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

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 14 and paragraph (f) of Rule 

19b–4 thereunder.15 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– 

BATS–2015–01 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–BATS–2015–01. 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 

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–BATS– 

2015–01, and should be submitted on or 

before February 10, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00702 Filed 1–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74045; File No. SR–BX– 

2015–003] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; 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, NASDAQ OMX 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 BX 

Rule 7025 (Extranet Access Fee) of the 

Exchange’s Pricing Schedule entitled 

‘‘Extranet Access Fee’’ (‘‘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. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxbx.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 BX Rule 7025 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 other markets.3

Specifically, the Exchange proposes to 

modify BX Rule 7025 to 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 

substituting ‘‘recipient’’ for ‘‘client 

organization’’ and also indicating that if 


rljohnson on DSK3VPTVN1PROD with NOTICES