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
Federal Register / Vol. 80, No. 12 / Tuesday, January 20, 2015 / Notices 2767 

4As defined in BX Rule 7025, 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 the Exchange 

market data feeds to a recipient’s site. 

5See 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–NASDAQ– 

2013–159) (notice of filing and immediate 

effectiveness increasing the Extranet Access Fee to 

$1,000). 

6See 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 reinstating the 

Extranet Access Fee to $750). The Extranet Access 

Fee was also established on PSX. See 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). 

7The Exchange notes that while BX Rule 7025 

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. 

8The Exchange will inform extranet providers of 

their reporting responsibilities via its public Web 

site. 

9 15 U.S.C. 78f. 

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

an extranet provider uses multiple CPE 

Configurations 4 to provide market data 

feeds to any recipient the monthly fee 

shall apply to each such CPE 

Configuration. This proposal conforms 

the Extranet Access Fee in BX Rule 7025 

to the equivalent fee in NASDAQ Rule 

7025. 

The Extranet Access Fee was 

introduced a decade ago on NASDAQ 

Rule 7025.5 The Extranet Access Fee 

was introduced about five years ago on 

BX Rule 7025, and is currently set at 

$750 per month.6 By this proposal, the 

Exchange normalizes the cost and 

structure of its Extranet Access Fee to 

that of the equivalent decade-old 

NASDAQ fee. 

BX Rule 7025 currently indicates that 

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 $750 per recipient client 

organization 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 BX Rule 7025 verbatim clarifying 

language from NASDAQ Rule 7025. As 

proposed, BX Rule 7025 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 recipient, the monthly fee 

shall apply to each such CPE 

Configuration. For purposes of this Rule 

7025, 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 the 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 the Exchange pursuant 

to this Rule 7025 as well as a connection 

pursuant to BX Options Chapter XV, 

Section 3 shall be assessed a total 

monthly access fee of $1,000 per 

recipient CPE Configuration.’’ The 

proposal thus conforms BX Rule 7025 to 

NASDAQ Rule 7025, and makes them 

substantively identical.7 The proposal 

also makes it clear that if an extranet 

provider establishes a connection on BX 

(equities) as well as on BX Options, 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. 

The modified proposed Extranet 

Access Fee will, as on NASDAQ, be 

used to help support 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.8 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 

clarifications to conform the language of 

BX Rule 7025 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 to substitute 

‘‘recipient’’ for ‘‘client organization.’’ 

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 BX Rule 7025 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,9 in general, and 

with Section 6(b)(4) 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. 

The Exchange believes that its 

proposal to amend BX Rule 7025, and 

to clarify the applicability of the 

Extranet Access Fee if an extranet 

provider has a connection on both the 

equity side through BX and the options 

side through BX options conforms the 

fee on the BX markets and the 

equivalent fee on Phlx and NASDAQ 

and 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 


rljohnson on DSK3VPTVN1PROD with NOTICES
2768 Federal Register / Vol. 80, No. 12 / Tuesday, January 20, 2015 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(ii). 12 17 CFR 200.30–3(a)(12). 

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 to similarlysituated Extranet Access Fee rules on 

Phlx and NASDAQ. 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, BX Rule 7025 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 by replacing nonconforming language. 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. 

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,11 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– 

BX–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–BX–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–BX– 

2015–003, and should be submitted on 

or before February 10, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00703 Filed 1–16–15; 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 

February 19, 2015. 


rljohnson on DSK3VPTVN1PROD with NOTICES