Document ID: SEC-2017-1633-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq GEMX, LLC
Posted Date: 2017-10-04T04:00Z

[Federal Register Volume 82, Number 191 (Wednesday, October 4, 2017)]
[Notices]
[Pages 46313-46314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21281]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81756; File No. SR-GEMX-2017-40]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Schedule of Fees To Make It Clear That the Nasdaq GEMX Trades Feed Is a 
Free Offering of the Exchange

September 28, 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 September 15, 2017, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``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.
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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

    The Exchange proposes to amend the Schedule of Fees to make it 
clear that the Nasdaq GEMX Trades Feed is a free offering of the 
Exchange provided to subscribers of at least one of the fee liable 
real-time market data products offered on the Exchange.
    The text of the proposed rule change is available on the Exchange's 
Web site at www.ise.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 amend the Schedule of 
Fees to make it clear that the Nasdaq GEMX Trades Feed (``Trades 
Feed'') is a free offering of the Exchange provided to subscribers of 
at least one of the fee liable real-time market data products offered 
on the Exchange. On April 27, 2017 the Exchange filed a proposed rule 
change to establish ports that members use to connect to the Exchange 
with the migration of the Exchange's trading system to the Nasdaq INET 
architecture.\3\ In that proposed rule change, the Exchange also 
established the Trades Feed, which is a market data offering that 
displays last trade information along with opening price, cumulative 
volume, high and low prices for the day. The data provided for each 
instrument includes the symbols (series and underlying security), put 
or call indicator, expiration date, the strike price of the series, and 
trading status. The Trades Feed is a free market data product provided 
to subscribers of at

[[Page 46314]]

least one of the fee liable real-time market data products offered on 
the Exchange--i.e., the Nasdaq GEMX Real-time Depth of Market Raw Data 
Feed (``Depth Feed''), the Nasdaq GEMX Order Feed (``Order Feed''), and 
the Nasdaq GEMX Top Quote Feed (``Top Quote Feed''). To make it clear 
that the Trades Feed is a free offering of the Exchange, the Exchange 
now proposes to add the Trades Feed to the Schedule of Fees at a price 
of $0 per month for subscribers of the Depth Feed, Order Feed, or Top 
Quote Feed.
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    \3\ See Securities Exchange Act Release No. 80649 (May 10, 
2017), 82 FR 22595 (May 16, 2017) (SR-GEMX-2017-07).
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2. Statutory Basis
    The Exchange 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, in that they are designed to 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its members and other persons using its facilities. 
In particular, the Exchange believes that it is reasonable, equitable, 
and not unfairly discriminatory to add the Trades Feed to the Schedule 
of Fees at a cost of $0 per month for subscribers of the Depth Feed, 
Order Feed, or Top Quote Feed to alert members to the availability of 
this free market data product. The Exchange notes that the Trades Feed 
is a current market data offering that the Exchange is adding to its 
Schedule of Fees at this time to increase transparency to members. 
While the Exchange previously noted this free product in the proposed 
rule change that established the Trades Feed, the Exchange believes 
that adding it to the Schedule of Fees will ensure that all members are 
adequately apprised of its availability free of cost for subscribers of 
the Depth Feed, Order Feed, or Top Quote Feed. The Exchange does not 
believe that it is unfairly discriminatory to offer the Trades Feed 
only to subscribers of one of the fee liable market data products 
described above because those subscribers already have the appropriate 
connections to receive real-time market data, and the fees paid for 
those other products can offset costs associated with offering the 
Trades Feed. Furthermore, the Exchange notes that the Trades Feed is 
available to any interest [sic] market participant by paying the fees 
associated with one of the fee liable real-time market data products.
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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

    In accordance with Section 6(b)(8) of the Act,\6\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. As explained 
above, the Exchange is adding the Trades Feed to the Schedule of Fees 
at a cost of $0 per month for subscribers of the Depth Feed, Order 
Feed, or Top Quote Feed to alert members to the availability of this 
free market data product. The Exchange does not believe that adding 
this free market data product to the Schedule of Fees will have any 
significant competitive impact. All market participants can gain access 
to the information contained in the Trades Feed by subscribing to any 
of the fee liable real-time market data products described above.
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    \6\ 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

    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.\7\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-GEMX-2017-40 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-GEMX-2017-40. 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 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; 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-GEMX-2017-40, and should be 
submitted on or before October 25, 2017.

    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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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21281 Filed 10-3-17; 8:45 am]
 BILLING CODE 8011-01-P