52950 Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 74022 

(Jan. 9, 2015); 80 FR 2157 (Jan. 15, 2015) (SR–Phlx– 

2015–04). 

ACTION: Notice of meeting of Securities 

and Exchange Commission Dodd-Frank 

Investor Advisory Committee. 

SUMMARY: The Securities and Exchange 

Commission Investor Advisory 

Committee, established pursuant to 

Section 911 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act of 2010, is providing notice that it 

will hold a public meeting. The public 

is invited to submit written statements 

to the Committee. 

DATES: The meeting will be held on 

Thursday, December 7, 2017 from 9:00 

a.m. until 3:30 p.m. (ET). Written 

statements should be received on or 

before December 7, 2017. 

ADDRESSES: The meeting will be held in 

Multi-Purpose Room LL–006 at the 

Commission’s headquarters, 100 F 

Street NE., Washington, DC 20549. The 

meeting will be webcast on the 

Commission’s Web site at www.sec.gov. 

Written statements may be submitted by 

any of the following methods: 

Electronic Statements 

D Use the Commission’s Internet 

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

rules/other.shtml); or 

D Send an email message to rulescomments@sec.gov. Please include File 

No. 265–28 on the subject line; or 

Paper Statements 

D Send paper statements to Brent J. 

Fields, Secretary, Securities and 

Exchange Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File No. 

265–28. This file number should be 

included on the subject line if email is 

used. To help us process and review 

your statement more efficiently, please 

use only one method. 

Statements also will be available for 

Web site viewing and printing in the 

Commission’s Public Reference Room, 

100 F Street NE., Room 1503, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. All statements 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. 

FOR FURTHER INFORMATION CONTACT: 

Marc Oorloff Sharma, Chief Counsel, 

Office of the Investor Advocate, at (202) 

551–3302, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549. 

SUPPLEMENTARY INFORMATION: The 

meeting will be open to the public, 

except during that portion of the 

meeting reserved for an administrative 

work session during lunch. Persons 

needing special accommodations to take 

part because of a disability should 

notify the contact person listed in the 

section above entitled FOR FURTHER

INFORMATION CONTACT. 

The agenda for the meeting includes: 

Remarks from Commissioners; a 

discussion of a recommendation of the 

Investor as Purchaser Subcommittee 

regarding electronic delivery of 

information to retail investors; a 

discussion regarding retail investor 

protections and transparency in 

municipal and corporate bond markets; 

a discussion regarding cybersecurity 

risk disclosures (which may include a 

recommendation of the Investor as 

Owner Subcommittee); a discussion 

regarding dual-class share structures 

(which may include a Recommendation 

of the Investor as Owner 

Subcommittee); a discussion regarding 

retail investor disclosure: What works, 

what doesn’t, and best practices; 

subcommittee reports; and a nonpublic 

administrative work session during 

lunch. 

Dated: November 9, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–24692 Filed 11–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82032; File No. SR–Phlx– 

2017–84] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Access 

and Redistribution Fee 

November 8, 2017. 

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 October 

26, 2017, Nasdaq 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 and 

conform Sections VIII and XIII of the 

Exchange’s Pricing Schedule, to define 

key terms; to clarify the rule language; 

to clarify its application to Extranet 

Providers, Members, and Non-members 

in various contexts; and to make 

conforming changes to the Pricing 

Schedule’s Table of Contents. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqphlx.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 proposed rule change concerns 

Section VIII of the Exchange’s Pricing 

Schedule (the ‘‘Equities Rule’’) and 

Section XIII of the Exchange’s Pricing 

Schedule (collectively, the ‘‘Rules’’), 

currently entitled ‘‘Extranet Access 

Fee.’’ The Exchange first imposed an 

Extranet Access Fee in January of 2015.3

Today, technology and the ecosystem 

have changed such that the Rules need 

updating and clarification. Therefore, 

the Exchange is proposing several 

parallel changes to the Rules. 

First, the Exchange is proposing to 

rename both Rules and to clarify their 

meaning through the use of defined 

terms. The Exchange is adding 

definitions of the terms Equipment 

Configuration, and Extranet Provider to 

new subsection (a) of the Rules. The 

Exchange is also cross-referencing the 

definition of Distributors currently set 

forth in Section IX of the Exchange’s 

Pricing Schedule. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 52951 

4Available at http://www.nasdaqtrader.com/ 

Content/AdministrationSupport/AgreementsData/ 

NASDAQOMXExtranetAgreement.pdf. 

5Proposed Subsection (c) of Chapters VIII and 

XIII apply only to Distributors that connect to the 

Exchange via a Direct Circuit Connection pursuant 

to Section XI of the Pricing Schedule. They do not 

apply to Distributors that are co-located with the 

Exchange pursuant to Section X of the Pricing 

Schedule and that connect to the Exchange as 

specified under that Rule. Nor do they apply to 

entities that connect to Nasdaq [sic] remotely via 

Point of Presence Connectivity under Nasdaq Rule 

7051(c) as set forth in SR–NASDAQ–2017–97. 

6See SR–Phlx–2015–04 at footnote 16. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(4) and (5). 

The term ‘‘Equipment Configuration’’ 

will be defined to mean ‘‘any line, 

circuit, router package, or other 

technical configuration used to provide 

a connection to the Exchange market 

data feeds.’’ The term Equipment 

Configuration replaces the term 

‘‘Customer Premises Equipment 

Configuration’’ set forth in the current 

rules. The Exchange believes that the 

term ‘‘Customer Premises Equipment 

Configuration’’ is ambiguous and creates 

confusion about the ownership and 

location of equipment through which 

direct access to market data feeds is 

provided. By referring instead to 

‘‘Equipment Configuration,’’ the 

Exchange intends to specify that the 

ownership and location of the 

equipment is inconsequential to the 

application of access and redistribution 

fees. Rather, it is the number of 

configurations that matters, determining 

the number of monthly access and 

redistribution fees to be assessed. 

For example, if an Extranet Provider 

supplies market data to five recipients 

via five configurations, two of which are 

located in a single Exchange facility 

(such as Carteret, New Jersey) and three 

of which are located at different 

customer facilities, the Extranet 

Provider will be assessed access and 

redistribution fees of $5,000 per month. 

If an Extranet Provider supplies market 

data to one customer at two separate 

locations via two configurations—one 

within a Exchange facility and one 

located elsewhere—the Extranet 

Provider will be assessed access and 

redistribution fees of $2,000 per month. 

If an Extranet Provider supplies market 

data to four customers via four 

configurations all located within an 

Exchange co-location facility, the 

Extranet Provider will be assessed 

$4,000 per month in access and 

redistribution fees. The Exchange is 

proposing to define the term ‘‘Extranet 

Provider’’ as ‘‘any entity that has signed 

the Exchange Extranet Connection 

Agreement and that establishes a 

telecommunications connection in the 

Exchange’s co-location facility.’’ The 

Exchange requires entities to sign the 

Exchange Extranet Connection 

Agreement 4 for the purpose of setting 

the terms and conditions for those 

entities to place equipment in the 

Exchange’s co-location facility in order 

to establish a telecommunications 

connection directly to the Exchange and 

to provide its own customers with 

access to the Exchange market data 

feeds. 

Finally, in order to further enhance 

the clarity of the Exchange’s rules, the 

Exchange is proposing to cross-reference 

the definition of ‘‘Distributor’’ for 

purposes of this rule. Section IX of the 

Exchange’s Pricing Schedule currently 

defines Distributor as: 

[A]ny entity that receives a feed or data file 

of NASDAQ PHLX data directly from 

NASDAQ PHLX or indirectly through 

another entity and then distributes it either 

internally (within that entity) or externally 

(outside that entity). All distributors shall 

execute a NASDAQ PHLX distributor 

agreement. 

The Exchange is proposing to 

renumber and rearrange the existing 

rule text of the Rules. The first two 

sentences of existing rule text will 

become new subsection (b). The 

Exchange also proposes to improve the 

clarity of subsection (b) by using the 

new definitions outlined above and by 

specifying that the monthly fees referred 

to are the monthly access and 

redistribution fees. As described earlier, 

the third sentence of existing rule text 

is being modified and moved to 

paragraph (1) of new subsection (a) as 

the improved definition of ‘‘Equipment 

Configuration.’’ The fourth and fifth 

sentences of existing rule text will move 

to new subsection (d) with modest 

textual improvements but no change in 

application of fees. The sixth sentence 

of existing rule text will move to the 

final sentences of subsections (b) and (c) 

with minor textual enhancements to 

apply it with equal effect to Extranet 

Providers and Distributors. 

The Exchange also proposes to add 

new subsection (c) to specify and codify 

that similarly situated Distributors and 

Extranet Providers will pay similar fees. 

Under subsection (b), Extranet Providers 

are assessed a monthly fee of $1,000 for 

each Equipment Configuration that 

offers Exchange market data feeds. 

Similarly, under proposed subsection 

(c), the same $1,000 monthly fee applies 

to Distributors to whom the same 

Exchange market data feeds are 

published via a Direct Circuit 

Connection to the Exchange. The 

Exchange believes that, as defined, 

Extranet Providers and Distributors are 

similarly situated because both entities 

connect directly to the Exchange, and 

both provide Exchange market data 

feeds to their customers via those 

connections.5 Likewise, the customers 

of Extranet Providers and Distributors 

are similarly situated in that they 

receive the same Exchange market data 

feeds through similar means. 

For example, a Distributor with two 

Direct Circuit Connections to the 

Exchange, both of which emanate from 

a single Exchange co-location facility 

(such as Carteret, New Jersey) and both 

of which receive Exchange market data 

feeds, will be assessed access and 

redistribution fees of $2,000 per month. 

A Distributor with two Direct Circuit 

Connections to the Exchange that 

emanate from two separate locations 

and that receives Exchange market data 

feeds over each connection will be 

assessed access and redistribution fees 

of $2,000 per month. A Distributor with 

two Direct Circuit Connections to the 

Exchange that emanate from two 

separate locations and that receives 

Exchange market data feeds over only 

one of the connections will be assessed 

access and redistribution fees of $1,000 

per month. 

The Exchange previously assessed 

and currently assesses this fee in its 

capacity as operator of Nasdaq 

Technology Services, which had been 

considered an Extranet Provider.6 The 

Exchange believes that defining Extranet 

Providers and codifying the fee to 

Distributors (other than Extranet 

Providers) is clearer to market 

participants. The Exchange also 

understands that Distributors, like 

Extranet Providers, commonly pass the 

fee on to their customers and therefore 

specifying that Distributors employing a 

Direct Circuit Connection also pay the 

fee will ensure consistent treatment 

between users enjoying the same 

benefits via Extranet Providers on the 

one hand and Distributors on the other, 

as described above. 

Finally, the Exchange proposes to 

amend the Pricing Schedule’s Table of 

Contents to make conforming changes to 

Section XIII’s title. 

2. Statutory Basis 

The Exchange believes that this 

proposal is consistent with Section 6(b) 

of the Act,7 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,8 in particular, in that it 

provides for an equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using its facility, and to specify 


sradovich on DSK3GMQ082PROD with NOTICES
52952 Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 

9Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 10 15 U.S.C. 78s(b)(3)(A)(ii). 

that the fees are not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that the 

application of identical Access and 

Redistribution fees to Distributors and 

Extranet Providers as described in the 

proposed rule change is fair and 

equitable and non-discriminatory. As 

stated above, Distributors and Extranet 

Providers both connect to the Exchange 

directly for the purpose of redistributing Exchange market data feeds 

to their own customers and both enjoy 

similar benefits in doing so. Likewise, 

those customers, whether receiving 

Exchange market data feeds via a 

Distributor or an Extranet Provider 

receive that market data feeds in a 

similar fashion and with similar 

benefits. Those benefits are 

considerable: secure, rapid, reliable 

access to the highest quality market data 

feeds on the trading of equities and 

options on the Exchange. 

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In regulation NMS, while 

adopting a series of steps to improve the 

current market model, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 9

The Exchange believes it is fair and 

equitable and not discriminatory to 

apply equal access and redistribution 

fees to Distributors, as it does to 

Extranet Providers. As stated above, 

Distributors and Extranet Providers are 

similarly situated in that they receive 

Exchange market data feeds directly 

from the Exchange and they redistribute 

that data to their own customers. 

Likewise, the Exchange believes that the 

customers of Extranet Providers and of 

Distributors are similarly situated in the 

manner in which they receive Exchange 

market data feeds. 

The Exchange believes that it is 

consistent with an equitable allocation 

of reasonable dues and fees and not 

unfairly discriminatory to charge the 

fees proposed under subsection (c) of 

Chapters VIII and XIII of the PHLX 

Pricing Schedule to Extranet Providers 

and Distributors that are not co-located, 

but not to charge those same fees to 

Distributors that are co-located. First, 

Distributors that are co-located already 

pay fees set forth in Section X of the 

Pricing Schedule which include 

connectivity and access to data. Second, 

if a co-located Distributor were to send 

data feeds out of the co-location facility, 

the feeds would be processed and 

normalized by the Distributor, as 

opposed to by the Exchange; in that 

case, the Distributor would not be using 

the proximity for which Extranets and 

Direct Circuit Connection Distributors 

are being assessed fees under subsection 

(c) of Chapters VIII and XIII of the PHLX 

Pricing Schedule. 

The Exchange is proposing to enhance 

the clarity of the language of the Rules 

to ensure that customers understand the 

proper application of the Rules as 

technology has changed and continues 

to change. The Exchange believes that 

customers support the continued 

evolution of its rules, and that regulators 

do and should support and facilitate 

this evolution. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes that the 

proposed rule change will not impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. To the 

contrary, the Exchange believes that 

applying equal fees to similarly situated 

Extranet Providers and Distributors, 

enhancing the clarity of the Rules, and 

eliminating ambiguity imposes no 

burden on competition and is, in fact, 

pro-competitive. Extranet Providers and 

Distributors benefit from having a more 

accurate and complete understanding of 

the Exchange’s services and fees when 

determining which if any of those 

competing services to purchase 

voluntarily. 

The Exchange believes that the 

proposed rule change places no burden 

on competition because it specifies that 

identical fees will apply to all similarly 

situated Distributors and Extranet 

Providers that provide Exchange market 

data feeds to their own customers. As 

described above, such Distributors and 

Extranet Providers offer the same 

Exchange market data feeds in the same 

manner to similarly situated customers. 

The Exchange offers similar benefits to 

Distributors and Extranet Providers by 

offering them such access to Exchange 

market data feeds. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.10

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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–2017–84 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–2017–84. 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., 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 52953 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 50483 

(Oct. 1, 2004), 69 FR 60448 (Oct. 8, 2004) (SR– 

NASD–2004–118). 

4See Securities Exchange Act Release No. 74077 

(Jan. 16, 2015); 80 FR 3683 (Jan. 23, 2015) (SR– 

NASDAQ–2015–002). 

5Available at http://www.nasdaqtrader.com/ 

Content/AdministrationSupport/AgreementsData/ 

NASDAQOMXExtranetAgreement.pdf. 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2017–84 and should 

be submitted on or before December 6, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24655 Filed 11–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82037; File No. SR– 

NASDAQ–2017–114] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Access and Redistribution Fee 

November 8, 2017. 

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 October 

25, 2017, 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 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 and 

conform Nasdaq Equities Rule 7025 and 

Chapter XV, Section 12 of Nasdaq’s 

Options Rules, to define key terms; to 

improve the rule language; and to 

specify its application to Extranet 

Providers and Distributors in various 

contexts. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://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 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 proposed rule change concerns 

Nasdaq Rule 7025 (the ‘‘Equities Rule’’) 

and Chapter XV, Section 12, of Nasdaq’s 

Options Rules (the ‘‘Options Rule,’’ 

collectively the ‘‘Rules’’), currently 

entitled ‘‘Extranet Access Fee.’’ The 

Exchange first imposed an Extranet 

Access Fee in 2004.3 The Exchange last 

amended the Extranet Access Fee in 

January of 2015.4 Today, technology and 

the ecosystem have changed such that 

the Rules need updating and 

clarification. Therefore, Nasdaq is 

proposing several parallel changes to 

the Rules. 

First, Nasdaq is proposing to rename 

both Rules and to clarify their meaning 

through the use of defined terms. 

Nasdaq is adding definitions of the 

terms Equipment Configuration, and 

Extranet Provider to new subsection (a) 

of the Rules. Nasdaq is also crossreferencing the definition of Distributors 

currently set forth in Nasdaq Rule 

7019(c). 

The term ‘‘Equipment Configuration’’ 

will be defined to mean ‘‘any line, 

circuit, router package, or other 

technical configuration used to provide 

a connection to the Exchange market 

data feeds.’’ The term Equipment 

Configuration replaces the term 

‘‘Customer Premises Equipment 

Configuration’’ set forth in the current 

rules. Nasdaq believes that the term 

‘‘Customer Premises Equipment 

Configuration’’ is ambiguous and creates 

confusion about the ownership and 

location of equipment through which 

direct access to market data feeds is 

provided. By referring instead to 

‘‘Equipment Configuration,’’ Nasdaq 

intends to specify that the ownership 

and location of the equipment is 

inconsequential to the application of 

access and redistribution fees. Rather, it 

is the number of configurations that 

matters, determining the number of 

monthly access and redistribution fees 

to be assessed. 

For example, if an Extranet Provider 

supplies market data to five recipients 

via five configurations, two of which are 

located in a single Nasdaq facility (such 

as Carteret, New Jersey) and three of 

which are located at different customer 

facilities, the Extranet Provider will be 

assessed access and redistribution fees 

of $5,000 per month. If an Extranet 

Provider supplies market data to one 

customer at two separate locations via 

two configurations—one within a 

Nasdaq facility and one located 

elsewhere—the Extranet Provider will 

be assessed access and redistribution 

fees of $2,000 per month. If an Extranet 

Provider supplies market data to four 

customers via four configurations all 

located within a Nasdaq co-location 

facility, the Extranet Provider will be 

assessed $4,000 per month in access and 

redistribution fees. Nasdaq is proposing 

to define the term ‘‘Extranet Provider’’ 

as ‘‘any entity that has signed the 

Nasdaq Extranet Connection Agreement 

and that establishes a 

telecommunications connection in the 

Exchange’s co-location facility.’’ Nasdaq 

requires entities to sign the Nasdaq 

Extranet Connection Agreement 5 for the 

purpose of setting the terms and 

conditions for those entities to place 

equipment in Nasdaq’s co-location 

facility in order to establish a 

telecommunications connection directly 

to Nasdaq and to provide its own 

customers with access to Nasdaq market 

data feeds. 

Finally, in order to further enhance 

the clarity of Nasdaq’s rules, Nasdaq is 

proposing to cross-reference the 

definition of ‘‘Distributor’’ for purposes 

of this rule. Rule 7019(c) currently 

defines Distributor as: 

[A]ny entity that receives a feed or data file 

of Nasdaq data directly from Nasdaq or 

indirectly through another entity and then 

distributes it either internally (within that 


sradovich on DSK3GMQ082PROD with NOTICES