Document ID: SEC-2013-1583-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market, LLC
Posted Date: 2013-09-10T04:00Z

[Federal Register Volume 78, Number 175 (Tuesday, September 10, 2013)]
[Notices]
[Pages 55320-55322]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21936]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70320; File No. SR-NASDAQ-2013-111)

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Adopt a Time-Limited Waiver of the Monthly Subscription Fee for New and 
Existing Subscribers to the Equity Trade Journal for Clearing Firms 
Service under Rule 7060

September 4, 2013.
    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 August 28, 2013 The NASDAQ Stock Market LLC (``NASDAQ'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change as described in Items I and II 
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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASDAQ is proposing to amend the fees assessed under Rule 7060. 
NASDAQ will offer the fee waiver to new subscriptions for the month of 
September 2013.
    The text of the proposed rule change is below. Proposed new 
language is underlined; proposed deletions are in brackets.
* * * * *
7060. Equity Trade Journal for Clearing Firms
    The Equity Trade Journal for Clearing Firms service is accessed via 
NasdaqTrader.com and provides member clearing firms with daily and ad 
hoc reports of correspondent trading activity associated with the 
subscribing member firm's clearing number. Equity

[[Page 55321]]

Trade Journal for Clearing Firms is offered [at no cost beginning 
November 15, 2012, and ] according to the following fee schedule[ 
beginning January 2, 2013]:

------------------------------------------------------------------------
                                     Number of correspondent    Monthly
               Tier                           MPIDs               fee
------------------------------------------------------------------------
Tier 1............................  daily reports for 1-10          $750
                                     correspondent MPIDs.
Tier 2............................  daily reports for 11-20        1,000
                                     correspondent MPIDs.
Tier 3............................  daily reports for 21-30        1,250
                                     correspondent MPIDs.
Tier 4............................  daily reports for 31-40        1,500
                                     correspondent MPIDs.
Tier 5............................  daily reports for 41 or        1,750
                                     more correspondent MPIDs.
------------------------------------------------------------------------

    The above fees are waived for the month of September 2013 for new 
and existing subscribers. Normal fees will apply to all subscribers 
beginning October 2013.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NASDAQ 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 those 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 is proposing to waive subscription fees for the Equity 
Trade Journal for Clearing Firms (``ETJ Clearing'') service for all 
subscribers to the service during the month of September 2013. ETJ 
Clearing provides clearing member firms with daily and ad hoc reports 
of correspondent trading activity associated with the subscribing 
member firm's clearing number \3\ and which is accessed via 
NasdaqTrader.com. NASDAQ offered the service at no cost between 
November 15, 2012 to January 2, 2013, and for a fee according to the 
tiered fee schedule thereafter. In an effort to promote the service 
among member firms that are not subscribers to the service, NASDAQ is 
proposing an additional free period available to both new and existing 
subscribers for the month of September 2013. NASDAQ is offering the 
service at no cost for the month of September 2013 to encourage member 
firms that have not yet subscribed to subscribe; however, both new and 
existing subscribers will benefit from the free period. Normal fees 
will apply to all subscribers, new and existing, thereafter. In 
amending the rule text, NASDAQ is deleting references to the expired 
free period and timing of the service's launch.
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    \3\ Clearing member firms have unique clearing numbers that 
their correspondents use to identify the clearing firm associated 
with each trade.
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2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\4\ in general, and Section 
6(b)(4) of the Act,\5\ in particular, because 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 that 
NASDAQ operates or controls, and it does not unfairly discriminate 
between customers, issuers, brokers or dealers. The proposed fee waiver 
is reasonable because it will result in a reduction of fees during the 
month of September 2013 for all subscribers, thereby reducing the fees 
that they will ultimately pay for the service this year. The proposed 
fee waiver is equitable and not unfairly discriminatory because the 
Exchange is applying the waiver to all subscribers to the service and, 
as a consequence, the fee waiver does not discriminate in any way among 
member firms. NASDAQ notes that it is attempting to increase the 
subscriber base of the service, which, as discussed below, may benefit 
all subscribers. With a larger base of subscribers, the Exchange is 
able to allocate the fixed costs of the service among more subscribers, 
which in turn allows the Exchange to either delay or limit the 
frequency of any increases to the fees assessed for the service in 
response to increases in fixed costs. As such, any promotional free 
period offered to encourage new subscription to the service also may 
benefit existing subscribers. Accordingly, the proposed time-limited 
fee waiver is equitable [sic] not unfairly discriminatory.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASDAQ 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. Waiver of the 
subscription fee for all subscribers will result in lower fees, which 
are generally seen as indicative of the presence of competition. 
Moreover, the proposed fee waiver may promote broader subscription to 
the service, thus allowing NASDAQ to allocate the fixed costs of the 
subscription among a larger pool of subscribers and thereby delay or 
reduce the frequency of future fee increases resulting from increases 
in fixed costs experienced by NASDAQ. Finally, by providing a service 
that allows members to run and store reports on its [sic] 
correspondents' trading activity, NASDAQ hopes to promote competition 
among other trading centers by providing useful analytical tools to its 
member firms.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing change has become effective pursuant to Section 
19(b)(3)(A) of the Act,\6\ and paragraph (f)(2) \7\ of Rule 19b-4, 
thereunder as it establishes or changes a due, fee, or other charge. 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

[[Page 55322]]

the purposes of the Act. If the Commission takes such action, the 
Commission will institute proceedings to determine whether the proposed 
rule change should be approved or disapproved.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2).
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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-2013-111 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NASDAQ-2013-111. 
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 
NASDAQ. 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-2013-111, and should be submitted on or before October 1, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-21936 Filed 9-9-13; 8:45 am]
BILLING CODE 8011-01-P