Document ID: SEC-2014-0795-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market, LLC
Posted Date: 2014-05-14T04:00Z

[Federal Register Volume 79, Number 93 (Wednesday, May 14, 2014)]
[Notices]
[Pages 27671-27673]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-11030]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72126; File No. SR-NASDAQ-2014-047]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Modify Fees Set Forth in Rule 7015(e) Governing WebLink ACT and the 
ACT Workstation

May 8, 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 May 2, 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 modify fees set forth in Rule 7015(e) 
governing WebLink ACT and the ACT Workstation. The text of the proposed 
rule change is below; proposed new language is italicized; proposed 
deletions are in brackets.
* * * * *

7015. Access Services

    The following charges are assessed by Nasdaq for connectivity to 
systems operated by NASDAQ, including the Nasdaq Market Center, the 
FINRA/NASDAQ Trade Reporting Facility, and FINRA's OTCBB Service. The 
following fees are not applicable to the NASDAQ Options Market LLC. For 
related options fees for Access Services refer to Chapter XV, Section 3 
of the Options Rules.
    (a)-(d) No change.
    (e) Specialized Services Related to FINRA/NASDAQ Trade Reporting 
Facility

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                  CTCI fee                                                $575/month
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WebLink ACT or Nasdaq Workstation Post Trade  $525/month (full functionality) or $275/month (up to an average of
                                               twenty transactions per day each month) (For the purposes of this
                                               service only, a transaction is defined as an original trade
                                               entry, either on trade date or as-of transactions per month.)
                                              A subscription includes: the Trade Reporting File Upload service,
                                               which allows members to upload multiple trade reports in batches
                                               to ACT; and the ACT Reject Scan service, which provides a list of
                                               all of a member's rejected ACT trade entries and a copy of each
                                               rejected trade report form submitted to ACT.
                                              $225 per month for the ACT Trade History service which provides
                                               searchable access to a member's trades that are older than six
                                               months dating back to 2009.
ACT Workstation.............................  $525/logon/month.
                                              $225 per month for the ACT Trade History service which provides
                                               searchable access to a member's trades that are older than six
                                               months dating back to 2009.
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    (f)-(h) No change.
* * * * *

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 self-regulatory organization 
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 purpose of the proposed rule change is to amend Rule 7015 
relating to the ACT Workstation (``Workstation'') and WebLink ACT 
(``WebLink'') subscription. WebLink, also referred to as NASDAQ 
Workstation Post Trade, is a web-based application used for submission 
of trade reports. WebLink provides basic front-end access to the Trade 
Reporting Facility (``TRF'') operated by NASDAQ and the Financial 
Industry Regulatory Authority, Inc. (``FINRA''),\3\ FINRA's OTC 
Reporting Facility, as well as access to ACT functionality still 
offered by NASDAQ under authority delegated by FINRA.
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    \3\ NASDAQ notes that most FINRA members seeking access to the 
TRF use a proprietary front-end system developed by the broker-
dealer or a product offered by a service bureau. WebLink is designed 
as a basic front-end system for low volume users.
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    Currently, in Rule 7015(e), the Exchange assesses a fee for 
subscription to the Workstation of $525 per logon per

[[Page 27672]]

month, and to WebLink of $525 per user per month for full functionality 
and $275 per user, per month for a transaction-limited subscription. 
Each such subscription includes access to a member's historical trades 
executed and reported via ACT during the prior six months. These 
services and fees will remain unchanged.
    The Exchange is proposing to amend Rules 7015(e) [sic] to offer 
members a new service called the ACT Trade History service that members 
can choose to add to their existing Weblink or ACT Workstation 
subscriptions for a monthly fee of $225. The new service will provide 
access to members' historical trades that are more than six months old 
dating back to 2009. The optional service will provide an easy-to-use 
application that allows members to access a searchable database 
containing their own trade information. Members can search using a date 
range, stock symbol or CUSIP number, side of trade, trade capacity, 
price, or Market Participant Identifier. The service will also allow 
firms to reconcile the treatment of trades over time, including trade 
reversals, step-outs, and as-of trades. The service will offer multiple 
standardized report formats as well as an option to configure 
personalized reports that best serve that firm's business or regulatory 
needs. Members that determine not to purchase the new optional service 
for $225 can continue to operate their existing Weblink or ACT 
Workstation services with no change in service or fees.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \4\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \5\ in particular, in that the proposal 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. The proposed ACT Trade History service will permit 
members to perform various functions that serve to promote these stated 
policies. For example, users can search trade history to fulfill 
compliance functions, to assess execution quality, and to evaluate 
trading practices. The new service will assist with these and many 
other functions that will allow members to better protect investors and 
the public interest.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    NASDAQ also believes that the proposed rule change is consistent 
with the provisions of Section 6(b)(4) of the Act,\6\ 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 for the new optional service for the ACT Workstation 
and WebLink fees is reasonable because it reflects the added value that 
subscribing members receive from the voluntary purchase of the ACT 
Trade History package. Each member will evaluate the potential benefits 
available via the optional package and weight [sic] those benefits 
against the cost of the monthly subscription. There is no minimum 
subscription commitment, meaning members can evaluate its performance 
for a single month and then terminate the package with no continuing 
obligation. NASDAQ also believes that the proposed fee for such 
subscribers to the Workstation and WebLink is not discriminatory 
because each member that chooses the optional service will pay the same 
fee.
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    \6\ 15 U.S.C. 78f(b)(4).
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    ACT Workstation and WebLink subscribers that determine that the 
enhancements do not provide sufficient benefit to warrant the cost of 
the subscriptions may choose to subscribe to alternatively [sic] third 
party front end systems or develop front end applications of their own 
to perform the same function.

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. To the contrary, 
NASDAQ's proposal is a response to competition from other vendors and 
front-end services that process members' trade reports. NASDAQ's desire 
to improve the functionality offered to users of the FINRA/NASDAQ TRF 
reflects a healthy, competitive market which leads to enhanced products 
and services. The proposed service and fee are pro-competitive in that 
subscribers will opt for NASDAQ's service only it [sic] they recognize 
sufficient value and derive sufficient benefit from the enhancements to 
warrant paying the proposed monthly fee.

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

    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) of the Act \7\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(a).
    \8\ 17 CFR 240.19b-4(f)(6).
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    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-NASDAQ-2014-047 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-2014-047. 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

[[Page 27673]]

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 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-2014-047, and should 
be submitted on or before June 4, 2014.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-11030 Filed 5-13-14; 8:45 am]
BILLING CODE 8011-01-P