Document ID: SEC-2016-2155-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market LLC
Posted Date: 2016-12-07T05:00Z

[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88311-88312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29292]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79447; File No. SR-NASDAQ-2016-163]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Change the Titles of Equities Rule 7015 and Options Chapter XV, Section 
3, and To Make Related Changes

December 1, 2016.
    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 November 28, 2016, 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 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to rename the title of rules that assess fees 
for connectivity to systems operated by the Exchange or FINRA under 
Equities Rule 7015 and Options Chapter XV, Section 3, and to make 
related changes to other rules that reference the renamed rules.
    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 purpose of the proposed rule change is to rename related text 
in Rule 7015 and Chapter XV, Section 3, to more accurately reflect the 
services being provided and eliminate an outdated term. Both Rule 7015 
and Chapter XV, Section 3, include connectivity to services that are 
not related to connecting to the Exchange trading system, such as 
TradeInfo,\3\ Specialized Services Related to FINRA/NASDAQ Trade 
Reporting Facility,\4\ and the NASDAQ IPO Workstation.\5\ As a 
consequence, the Exchange believes that it is appropriate to rename the 
title of Rule 7015 as ``Ports and other Services'' and rename the title 
of Chapter XV, Section 3, as ``NASDAQ Options Market--Ports and other 
Services,'' which the Exchange believes more accurately describe the 
depth and breadth of services provided to members under those rules.
---------------------------------------------------------------------------

    \3\ TradeInfo is an Internet-based tool that, among other 
things, allows users to view all of the NASDAQ order and execution 
information for their entire firm for both equities and options 
through a single interface. TradeInfo may be subscribed to under 
both Rule 7015 and Chapter XV Section 3.
    \4\ Specialized Services Related to FINRA/NASDAQ Trade Reporting 
Facility includes WebLink ACT or Nasdaq Workstation Post Trade, and 
ACT Workstation. See Rule 7015(e).
    \5\ The NASDAQ IPO Workstation provides subscribing member firms 
with the IPO Indicator service, which provides information on order 
execution that would be received in an IPO during the launch 
process.
---------------------------------------------------------------------------

    The Exchange is also proposing to amend reference to the title of 
Rule 7015 in Rule 7007(a), which is titled ``Collection of Exchange 
Fees and Other Claims and Billing Policy,'' and is also amending 
reference to the title of Chapter XV, Section 3, found under Section 
7(c)(2) of Chapter XV to reflect the amended titles of Rule 7015 and 
Chapter XV, Section 3.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\7\

[[Page 88312]]

in particular, in that it is designed 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, by clarifying 
applicability of rules whose current titles could confuse market 
participants. Specifically, the Exchange is eliminating the term 
``Access'' and replacing it with the phrase ``Ports and other'' because 
the new titles will more accurately describe the depth and breadth of 
services provided to members under Rule 7015 and Chapter XV, Section 3. 
As explained above, the various connectivity and services offered under 
Rule 7015 and Chapter XV, Section 3, include services listed that are 
not related to connecting to the Exchange such as TradeInfo, 
Specialized Services Related to FINRA/NASDAQ Trade Reporting Facility, 
or the NASDAQ IPO Workstation. These services allow members to view 
information and are not related to connecting to the Exchange. Thus, 
the changes proposed herein do not impact the fees, connectivity or 
services described under Rule 7015 and Chapter XV, Section 3, but 
rather merely clarify and harmonize the terminology used to better 
align it with what is provided under the rules.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that, to 
the extent it has any impact on competition, the proposed change will 
promote competition by making it clear to all market participants and 
exchange competitors what is provided under Rule 7015 and Chapter XV, 
Section 3.

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

    Because the foregoing proposed rule change does not (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of its filing. However, 
Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay so that the proposed rule 
change will become operative on filing. The Exchange stated that the 
proposed rule change promotes the protection of investors and the 
public interest by clarifying and harmonizing the terminology used in 
the Exchange's rules. Waiver of the operative delay would allow the 
Exchange, without delay, to rename the rules to make clear what the 
rules cover, therefore, the Commission believes that waiver of the 30-
day operative delay is consistent with the protection of investors and 
the public interest. Therefore, the Commission designates the proposed 
rule change to be operative upon filing.\11\
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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 change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2016-163 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2016-163. 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-NASDAQ-2016-163, and should 
be submitted on or before December 28, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-29292 Filed 12-6-16; 8:45 am]
 BILLING CODE 8011-01-P