Document ID: SEC-2014-1374-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market LLC
Posted Date: 2014-08-15T04:00Z

[Federal Register Volume 79, Number 158 (Friday, August 15, 2014)]
[Notices]
[Pages 48281-48285]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19336]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72810; File No. SR-NASDAQ-2014-078]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
the Qualified Market Maker Incentive Program Under Rule 7014, and the 
Schedule of Fees and Rebates Under Rule 7018

August 11, 2014.
    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 1, 2014, 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, 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.
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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 make changes to the Qualified Market Maker 
(``QMM'') Incentive Program under Rule 7014, and the schedule of fees 
and rebates for execution and routing of orders under Rule 7018. NASDAQ 
will begin assessing the fees effective August 1, 2014.
    The text of the proposed rule change is available at 
nasdaq.cchwallstreet.com, at NASDAQ's principal office, 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, 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.

[[Page 48282]]

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

1. Purpose
    NASDAQ is proposing to amend a fee under Rule 7014(e) assessed 
members participating in the QMM Incentive Program, and is proposing 
several changes to the schedule of fees and credits applicable to 
execution and routing of orders under Rule 7018, all of which are 
described in detail below.
QMM Incentive Program
    A QMM is a member that makes a significant contribution to market 
quality by providing liquidity at the national best bid and offer 
(``NBBO'') in a large number of stocks for a significant portion of the 
day. In addition, the member must avoid imposing the burdens on NASDAQ 
and its market participants that may be associated with excessive rates 
of entry of orders away from the inside and/or order cancellation. The 
designation reflects the QMM's commitment to provide meaningful and 
consistent support to market quality and price discovery by extensive 
quoting at the NBBO in a large number of securities. In return for its 
contributions, certain financial benefits are provided to a QMM with 
respect to a particular MPID (a ``QMM MPID''), as described under Rule 
7014(e). These benefits include a lower rate charged for executions of 
orders in securities priced at $1 or more per share that access 
liquidity on the NASDAQ Market Center and that are entered through a 
QMM MPID.\3\ Under Rule 7014(e)(3), the current charge assessed on a 
member for removing liquidity in securities priced at $1 or more per 
share on NASDAQ is $0.0030 per share executed in a NASDAQ-listed 
security. QMM MPIDs, however, receive a lower charge of $0.0029 per 
share executed for removing liquidity in securities priced at $1 or 
more per share listed on exchanges other than NASDAQ. NASDAQ is 
proposing to increase this charge from $0.0029 to $0.00295. NASDAQ 
notes that both the current and proposed fees are lower than the rate 
assessed under the rule for NASDAQ-listed securities. This is 
reflective of the Exchange's continued desire to provide incentives to 
attract order flow to the Exchange in securities listed on exchanges 
other than NASDAQ. The modest increase in the fee is indicative of the 
success of the lower fee in attracting such order flow.
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    \3\ Rule 7014(e)(3) further requires, however, that after the 
first month in which an MPID becomes a QMM MPID, the QMM's volume of 
liquidity added, provided, and/or routed through the QMM MPID during 
the month (as a percentage of Consolidated Volume) is not less than 
0.05% lower than the volume of liquidity added, provided, and/or 
routed through such QMM MPID during the first month in which the 
MPID qualified as a QMM MPID (as a percentage of Consolidated 
Volume).
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Amended Fees for Execution and Routing of Securities Listed on Any 
Domestic Market (Tapes A, B, and C)
    NASDAQ is proposing changes to the credits provided to members 
executing or routing securities listed on any domestic exchange. NASDAQ 
notes that the eligibility requirements and credits provided by each of 
the proposed changes hereunder are identical among all three categories 
of securities (i.e., Tapes A, B, and C). As such, NASDAQ is discussing 
the proposed changes to the credits provided for activity in each 
category of security in this section.\4\
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    \4\ Notwithstanding that the rule text discussed hereunder is 
identical for each category of security, the eligibility 
requirements apply to the individual type of security transacted. 
Accordingly, a member's activity in each category of security is not 
aggregated to meet eligibility requirements.
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    NASDAQ is proposing to provide two new credits for providing 
displayed quotes and orders (other than Supplemental Orders) that 
provide liquidity. The two new credits are based, at least in part, on 
a member's activity during the Opening and Closing Crosses. First, 
NASDAQ is proposing a new credit of $0.00293 per share executed to 
members with shares of liquidity provided in all securities through one 
or more of its Nasdaq Market Center MPIDs (``MPIDs'') that represent 
more than 0.10% of Consolidated Volume during the month, with shares 
executed in the Opening and Closing Cross that represent more than 
0.20% of Consolidated Volume and orders entered through a single MPID 
that represent more than 0.50% of Consolidated Volume during the month. 
Second, NASDAQ is proposing to provide a new credit of $0.0028 per 
share executed to members with shares of liquidity provided in the 
Opening and Closing Crosses, excluding Market-on-Close, Limit-on-Close, 
Market-on-Open, Limit-on-Open, Good-til-Cancelled, and Immediate-or-
Cancel orders, through one or more of its MPIDs that represent more 
than 0.01% of Consolidated Volume during the month. NASDAQ notes that 
the proposed credits incentivize members to provide liquidity in the 
opening and closing processes in return for receiving benefits and 
incentives for adding displayed liquidity. Taken together, these two 
new tiers are designed as incentives to members to provide liquidity at 
the open, during the trading day, and the close, which improve price 
discovery for the benefit of all investors. The lower credit allotted 
to members providing more than 0.01% of Consolidated Volume during the 
month is reflective of the lower level of improvement to market 
provided by the qualifying member.
    NASDAQ provides credits to members that provide certain levels of 
midpoint orders per month. The credits range from $0.0005 to $0.0017 
per share executed, increasing as the levels of midpoint orders 
increase and meet the next tier's requirements. NASDAQ is proposing to 
provide a new credit of $0.0020 per share executed to members that 
provide non-displayed midpoint orders that provide an average daily 
volume of 6 million or more shares through midpoint orders during the 
month. As a consequence, NASDAQ is also proposing to modify the 
eligibility requirements for the existing $0.0017 credit provided to 
members that provide non-displayed midpoint order liquidity. Currently, 
NASDAQ requires a member to provide an average daily volume of 5 
million or more shares through midpoint orders during the month. In 
light of the proposed new $0.0020 credit, NASDAQ is proposing to place 
a ceiling on the existing $0.0017 credit eligibility requirement of up 
to an average daily volume of 6 million shares through midpoint orders 
during the month. Accordingly, a member may qualify for the $0.0017 
credit by providing average daily volume of between 5 million and less 
than 6 million shares through midpoint orders during the month.
Amended Fees for Execution and Routing of Securities Listed on NASDAQ 
(Tape C)
    NASDAQ is proposing to assess a new charge under Rule 7018(a)(1) on 
members for executing against resting midpoint liquidity. The current 
default rate for removing liquidity from NASDAQ in NASDAQ-listed 
securities is $0.0030. NASDAQ is proposing to assess a lower charge of 
$0.0027 for removing midpoint liquidity. NASDAQ notes that the proposed 
new fee is identical to fees currently assessed by NASDAQ for such 
activity in securities listed on NYSE or exchanges other than NASDAQ 
and NYSE.
Amended Fees for Execution and Routing of Securities Listed on NYSE 
(Tape A)
    NASDAQ is proposing to modify certain fees assessed under Rule 
7018(a)(2), which apply to quotes and orders in securities listed on 
NYSE. NASDAQ assesses a fee of $0.0029 per share executed on members 
that enter

[[Page 48283]]

Market-on-Close (``MOC'') and/or Limit-on-Close (``LOC'') orders 
executed in the NASDAQ Closing Cross, entered through a single MPID 
that represent more than 0.06% of Consolidated Volume during the month. 
NASDAQ originally introduced the discount charge because it believed 
that members that participate in the NASDAQ Closing Cross to a 
significant extent through the use of MOC and/or LOC orders are 
frequently acting on behalf of institutional investor customers.\5\ At 
the time, NASDAQ believed that members may have been giving NASDAQ 
lower relative priority in their order routing decisions due to its 
relatively high fees for accessing liquidity, as compared with lower 
cost exchanges. As a consequence, liquidity providers on NASDAQ may 
have been receiving larger orders that had already attempted to access 
liquidity elsewhere, such that the order was more likely to have an 
impact on the price of the stock. NASDAQ hoped that by lowering the 
fees for these members they would be encouraged to give greater 
priority to NASDAQ in their routing decisions, thereby lowering their 
cost and improving the execution experience of liquidity providers. 
Moreover, NASDAQ hoped to encourage greater use of its Closing Cross 
through the reduction in the charge. NASDAQ notes that reduced rate has 
not materially improved the market in Tape A securities and therefore 
is proposing to increase the charged assessed from $0.0029 to $0.00295 
per share executed.
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    \5\ Securities Exchange Act Release No. 68421 (December 13, 
2012), 77 FR 75232 (December 19, 2012) (SR-NASDAQ-2012-135).
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    NASDAQ is also proposing to amend the charge assessed members for 
DOT or LIST Orders that execute in the NYSE opening process or 
reopening process. Currently, NASDAQ assesses a charge of $0.0005 per 
share executed, but limits the charge to $15,000 per month per member. 
NASDAQ is proposing to eliminate the $15,000 per month per member fee 
cap, which will allow the Exchange to more closely align the fee to 
costs incurred by NASDAQ in routing such orders to other venues, which 
are not capped.
    NASDAQ is proposing to adopt a new credit provided to members that 
qualify under certain requirements of the Market Quality Incentive 
Programs of Rule 7014. Specifically, NASDAQ will provide a credit of 
$0.0001 per share executed to a member that either qualifies for a 
credit under Rule 7014(c)(3) \6\ or that is designated as a QMM under 
Rule 7014(d). The credit provided is based on the shares executed 
through the qualifying MPID under Rules 7014(c)(3) or 7014(d), and is 
provided in addition to any other credit or rebate for which the member 
may qualify. NASDAQ notes that the credit will provide additional 
incentive to members to improve the quality of the market in NYSE-
listed securities on NASDAQ.
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    \6\ Rule 7014(c)(3) provides the highest credit under the 
Investor Support Program and, consequently, has the most stringent 
requirements among the credit tiers of the program.
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Amended Fees for Execution and Routing of Securities Listed on 
Exchanges Other Than NASDAQ and NYSE (Tape B)
    NASDAQ is proposing to modify certain charges assessed and credits 
provided under Rule 7018(a)(3). Specifically, NASDAQ is proposing to 
increase the charge assessed members that enter MOC and/or LOC orders 
executed in the NASDAQ Closing Cross, entered through a single MPID 
that represent more than 0.06% of Consolidated Volume during the month. 
Like the charge assessed for such orders in Tape A securities, as 
discussed above, NASDAQ currently assesses a charge of $0.0029 per 
share executed. For the same reasons noted above with respect to Tape A 
securities, NASDAQ is proposing to increase the charge to $0.00295 per 
share executed in Tape B securities.
Amended Fees for Execution in the Closing and Opening Crosses
    Rule 7018(d) sets forth fees assessed for executions received in 
the Closing Cross. The rule provides a default fee of $0.0002 per share 
executed assessed for all other quotes and orders not otherwise noted 
under the rule, and several tiers of fees for MOC and LOC orders 
executed in the Closing Cross. The Exchange is proposing to increase 
the default fee from $0.0002 to $0.0003 per share executed in the 
Closing Cross.
    NASDAQ is also proposing to amend the charges assessed for MOC and 
LOC orders executed in the Closing Cross. Specifically, under Tier A 
NASDAQ assesses a fee of $0.00065 per executed share for shares of 
liquidity provided in all securities through one or more of its MPIDs 
that represent above 1.40% of Consolidated Volume or MOC/LOC volume 
above 0.50% of Consolidated Volume. NASDAQ is proposing to increase the 
Tier A fee to $0.0008 per executed share. Similarly, NASDAQ is 
proposing to increase the fee assessed under Tier F of the rule. NASDAQ 
assesses a fee of $0.0014 per executed share for shares of liquidity 
provided in all securities through one or more of its MPIDs that 
represent 0.00% to 0.015% of Consolidated Volume. NASDAQ is proposing 
to increase the fee under Tier F to $0.0015 per executed share.
    Rule 7018(e) sets forth fees assessed for quotes and orders 
executed in the Opening Cross. NASDAQ is proposing to increase fees 
assessed for shares executed in the Opening Cross. Currently, the 
default charge assessed for all other quotes and orders executed in the 
Closing Cross not otherwise noted under the rule is $0.0002 per share 
executed. NASDAQ is proposing to increase the charge to $0.0003 per 
share executed.
    NASDAQ is also proposing to also increase the charge assessed for 
Market-on-Open, Limit-on-Open, Good-till-Cancelled, and Immediate-or-
Cancel orders executed in the Opening Cross. Currently, NASDAQ assesses 
a charge of $0.0010 per share executed, which NASDAQ proposes to 
increase to $0.00015 per share executed.
    The proposed increases to the fees assessed for executions in the 
Closing and Opening Crosses will help the Exchange recapture some of 
the costs it incurs operating the cross system, while maintaining 
relatively low fees for the execution of orders in these crosses.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with 
Sections 6(b)(4) and 6(b)(5) of the Act,\8\ 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 NASDAQ operates or controls, and is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the change to the QMM Program is 
reasonable because it represents a modest increase to an incentive fee, 
while maintaining a discount to the default rate, which NASDAQ believes 
will continue to benefit all market participants by encouraging quoting 
at or near the NBBO in a wide range of securities that are not listed 
on NASDAQ. As noted, the QMM Program is intended to encourage members 
to promote price discovery and market quality by quoting at the NBBO 
for a significant portion of each day in a large number of securities, 
thereby benefitting NASDAQ and other investors by committing capital to 
support the

[[Page 48284]]

execution of orders. NASDAQ believes that the modest increase in the 
already discounted fee will not materially affect the quality of the 
market with respect to securities that are not listed on NASDAQ. As 
such, NASDAQ believes that modestly increasing the fee is an equitable 
allocation of a reasonable fee. Moreover, NASDAQ believes that 
increasing the already discounted fee is not unfairly discriminatory 
because it continues to apply a lower incentive rate in securities in 
Tape A and B securities, where the reduced fee has been effective in 
improving the market in such securities on NASDAQ. By contrast, NASDAQ 
eliminated a reduced rate in NASDAQ-listed securities after observing 
that the lower fee did not materially increase the quality of the 
market in those securities.\9\ Accordingly, NASDAQ's proposed change is 
designed to maintain the benefits associated with the QMM program while 
reducing its cost, thereby making the program sustainable in the longer 
term.
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    \9\ Securities Exchange Act Release No. 71530 (February 12, 
2014), 79 FR 9553 (February 19, 2014) (SR-NASDAQ-2014-015).
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    The proposed new $0.00293 and $0.0028 per share executed credits 
under Rules 7018(a)(1), (2), and (3) are consistent with a fair 
allocation of a reasonable fee and not unfairly discriminatory because 
they provide credits in return for providing meaningful improvement to 
the market. The credits are reasonable because they are in-line with 
similar credits provided under the rules noted above for providing 
other measures of meaningful improvement to the market. The proposed 
two new credits are equitably allocated because, like other credits 
under the rules, all members are eligible to receive the credits if 
they meet the specific eligibility requirements.
    Similarly, NASDAQ believes that the proposed new $0.0020 per share 
executed credit provided for midpoint orders that provide liquidity, 
and the related modification to the eligibility requirement of the 
$0.0017 per share executed credit, under Rules 7018(a)(1), (2), and (3) 
are consistent with an equitable allocation of a reasonable fee and not 
unfairly discriminatory because they provide credits in return for 
providing meaningful improvement to the market. The new, higher credit 
tier is designed to provide members with an opportunity to achieve a 
higher credit rate in return for providing market improvement through 
liquidity-providing midpoint orders. NASDAQ does not believe that the 
addition of the new credit tier is unfairly discriminatory because all 
members are eligible to achieve the higher credit rate by meeting the 
eligibility requirement.
    NASDAQ believes that the proposed new fee of $0.0027 per share 
executed for members that execute against resting midpoint liquidity 
under Rule 7018(a)(1) is consistent with an equitable allocation of a 
reasonable fee and not unfairly discriminatory because it assesses a 
fee on activity that removes liquidity from the market, which is 
consistent with other fees assessed for removing liquidity from NASDAQ. 
NASDAQ believes the new fee is reasonable and equitably allocated 
because it is a lower fee than the default rate assessed for removing 
liquidity from NASDAQ and is identical to the fees assessed for removal 
of liquidity in midpoint orders in securities listed on NYSE or 
exchanges other than NASDAQ or NYSE. NASDAQ does not believe that the 
addition of the new fee is unfairly discriminatory because the fee 
eliminates a current distinction made in the rules whereby identical 
orders in non-NASDAQ-listed securities are assessed a fee whereas 
NASDAQ-listed orders are not.
    NASDAQ believes that the proposed increase in the charge assessed 
on members with MOC and/or LOC orders in securities listed on NYSE or 
exchanges other than NASDAQ or NYSE, which are executed in the NASDAQ 
Closing Cross and entered through a single MPID that represents more 
than 0.06% of Consolidated Volume during the month is consistent with 
an equitable allocation of a reasonable fee and not unfairly 
discriminatory because it is a modest increase in a fee designed to 
incentivize members to provide greater priority to NASDAQ. As noted, 
the reduced fee has not been entirely effective at modifying member 
behavior and, as a consequence, NASDAQ is increasing the fee to offset 
the cost of offering the incentive. The increased fee will continue to 
be less than the default rate assessed for orders that execute in the 
NASDAQ Market Center.
    NASDAQ believes that the proposed new $0.0001 per share executed 
credit in NYSE-listed securities provided to members that either 
qualify for a credit under Rule 7014(c)(3) or that is designated as a 
QMM under Rule 7014(d) is consistent with an equitable allocation of a 
reasonable fee and not unfairly discriminatory because it is designed 
to provide members with additional incentive to improve market quality. 
NASDAQ believes that the credit is reasonable because it promotes 
participation in the Market Quality Incentive Programs, which are 
designed to improve market quality. Moreover, the Exchange believes 
that the credit is equitably allocated because any member that meets 
the requirements of either Rule 7014(c)(3) or 7014(d) will receive the 
credit for its executions in NYSE-listed securities. NASDAQ believes 
that the proposed credit is not unfairly discriminatory because it is 
available to all members that choose to improve market quality in NYSE-
listed securities on NASDAQ and the Exchange believes this incentive 
will increase liquidity in Tape A securities, whereas the Exchange does 
not believe that such an incentive is needed in Tapes B and C 
securities at this juncture. NASDAQ must balance its desire to provide 
certain incentives with the costs the Exchange incurs in providing such 
incentives, which ultimately affect the ability to sustain them. As a 
consequence, NASDAQ must choose carefully the credits it provides, so 
that it promotes activity it deems most important while foregoing 
offering other credits, which may also improve market quality yet prove 
too costly.
    Lastly, NASDAQ believes that the changes to the fees assessed for 
participation the Opening and Closing Crosses are consistent with an 
equitable allocation of a reasonable fee and not unfairly 
discriminatory. NASDAQ believes that the fees are reasonable because 
supporting the crosses requires capital investment to maintain a system 
that facilitates an orderly auction process, and the proposed increases 
are modest and designed to offset the costs the Exchange incurs in 
operating the crosses. Moreover, the proposed fees are equitably 
allocated because they apply a fee on all members that benefit from 
participation in the Opening and Closing Crosses, and are based on the 
type of order entered and contribution to market quality. Similarly, 
the proposed fees are not unfairly discriminatory because they are 
based on the type of order executed in the crosses and the benefit to 
market quality that such orders provide. Specifically, NASDAQ believes 
that the proposal to increase the default charges assessed for 
executions in the crosses is reasonable, equitably allocated and not 
unfairly discriminatory because the increased fees are identical in 
amount and apply to all members that elect to participate in the 
crosses and receive an execution. Moreover, NASDAQ does not believe 
that the increased fees will negatively impact participation in the 
crosses. NASDAQ believes that the proposed increase in fees assessed 
for MOC and LOC orders executed in the Closing Cross under Tiers A and 
F is reasonable,

[[Page 48285]]

equitably allocated and not unfairly discriminatory because in adopting 
the tiered fees, the Exchange sets the fees to reasonably cover the 
costs and investments required to operate the Closing Cross. As is the 
case with all tiered fees, members are able to lower their fees by 
transacting more volume during the Closing Cross. NASDAQ believes that 
the proposed increase in the fee assessed for Market-on-Open, Limit-on-
Open, Good-till-Cancelled, and Immediate-or-Cancel orders executed in 
the Opening Cross is reasonable, equitably allocated and not unfairly 
discriminatory because, like the other increases to the fees assessed 
members for participation in the crosses, the proposed increase is 
modest and applies to all members participating in the Opening Cross 
that enters, and receives execution of, the order types listed by the 
rule. Like the other proposed fee increases relating to the crosses, 
this increase will help offset the costs associated with operating the 
Opening Cross.

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.\10\ NASDAQ notes 
that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee levels 
at a particular venue to be excessive, or rebate opportunities 
available at other venues to be more favorable. In such an environment, 
NASDAQ must continually adjust its fees and credits to remain 
competitive with other exchanges and with alternative trading systems 
that have been exempted from compliance with the statutory standards 
applicable to exchanges. Because competitors are free to modify their 
own fees and credits in response, and because market participants may 
readily adjust their order routing practices, NASDAQ believes that the 
degree to which fee changes in this market may impose any burden on 
competition is extremely limited. In this instance, although the change 
to the QMM program may limit the benefits of the program in non-NASDAQ-
listed securities, the incentive program in question remains in place 
and is itself reflective of the need for exchanges to offer significant 
financial incentives to attract order flow. The changes to routing fees 
and credits do not impose a burden on competition because NASDAQ's 
routing services are optional and are the subject of competition from 
other exchanges and broker-dealers that offer routing services, as well 
as the ability of members to develop their own routing capabilities. 
The new and increased fees for execution in the NASDAQ crosses are 
reflective of a need to support and improve NASDAQ systems, which in 
turn benefit market quality and ultimately, competition. In sum, if the 
changes proposed herein are unattractive to market participants, it is 
likely that NASDAQ will lose market share as a result. Accordingly, 
NASDAQ does not believe that the proposed changes will impair the 
ability of members or competing order execution venues to maintain 
their competitive standing in the financial markets.
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    \10\ 15 U.S.C. 78f(b)(8).
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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,\11\ and paragraph (f) \12\ of Rule 19b-4, 
thereunder. 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
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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-2014-078 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-2014-078. 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 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-NASDAQ-2014-078, and 
should be submitted on or before September 5, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-19336 Filed 8-14-14; 8:45 am]
BILLING CODE 8011-01-P