Document ID: SEC-2014-0274-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2014-02-13T05:00Z

[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8769-8771]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03128]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71506; File No. SR-BX-2014-008]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Not 
Charge the Extranet Access Fee

February 7, 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 January 31, 2014, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to not charge the extranet access fee 
(``Extranet Access Fee'') set forth in BX Rule 7025.
    The text of the proposed rule change is below. Proposed new 
language is italicized; proposed deletions are bracketed.\3\
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    \3\ Changes are marked to the rules of NASDAQ OMX BX, Inc. found 
at http://nasdaqomxbx.cchwallstreet.com.
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* * * * *

7025. Extranet Access Fee

    Extranet providers that establish a connection with the Exchange to 
offer direct access connectivity to market data feeds shall not be 
assessed a monthly access fee [of $1,000] per client organization 
Customer Premises Equipment (``CPE'') Configuration. [If an extranet 
provider uses multiple CPE Configurations to provide market data feeds 
to any client organization, the monthly fee shall apply to each such 
CPE Configuration.] For purposes of this Rule 7025, the term ``Customer 
Premises Equipment Configuration'' shall mean

[[Page 8770]]

any line, circuit, router package, or other technical configuration 
used by an extranet provider to provide a direct access connection to 
the Exchange market data feeds to a recipient's site. No extranet 
access fee will be charged for connectivity to market data feeds 
containing only consolidated data. For purposes of this rule, 
consolidated data includes data disseminated by the UTP SIP.
* * * * *

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 Exchange is proposing to change the Extranet Access Fee as set 
forth in BX Rule 7025 so that there is no charge. BX Rule 7025 
currently provides that [sic] for extranet providers that establish a 
connection with the Exchange to offer direct access connectivity to 
market data feeds to be assessed a monthly access fee of $1,000 per 
recipient Customer Premises Equipment (``CPE'') Configuration.\4\
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    \4\ See Securities Exchange Act Release No. 71197 (December 30, 
2013), 79 FR 679 (January 6, 2014) (SR-BX-2013-063). As defined in 
BX Rule 7025, a ``Customer Premises Equipment Configuration'' means 
any line, circuit, router package, or other technical configuration 
used by an extranet provider to provide a direct access connection 
to the Exchange market data feeds to a recipient's site.
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    Specifically, the Exchange proposes to reduce the Extranet Access 
Fee from $1,000 per recipient CPE Configuration per month to free. An 
Extranet Access Fee has been in place since its introduction in 2009 
\5\ and provided for free during the first year of operation. At the 
end of this period, the initial fee of $750 per recipient CPE 
Configuration per month remained in place although it was never billed. 
Since extranet providers have never yet been billed for this fee, the 
Exchange now proposes to change BX Rule 7025 to reflect that there will 
be no charge for extranet providers that establish a connection with 
the Exchange to offer direct access connectivity to market data feeds.
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    \5\ See Securities Exchange Act Release No. 59615 (March 20, 
2009), 74 FR 14604 (March 31, 2009) (SR-BX-2009-005).
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    Additionally, because the Exchange has thus far never collected an 
Extranet Access Fee, it does not intend to charge the $1,000 Extranet 
Access Fee for January 2014.\6\
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    \6\ The Exchange will not back-bill any extranet providers for 
extranet connections with the Exchange to offer direct access 
connectivity to market data feeds.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and with Section 6(b)(4) 
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 the 
Exchange operates or controls. All similarly situated extranet 
providers that establish an extranet connection with the Exchange to 
access market data feeds from the Exchange will not be subject to an 
Extranet Access Fee.
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    \7\ 15 U.S.C. 78f [sic].
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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. No 
fee is being charged and this applies across all extranet providers and 
none are compelled to establish a connection with the Exchange to offer 
access connectivity to market data feeds.

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.\9\ 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. 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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    \9\ 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-BX-2014-008 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-BX-2014-008. 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 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-BX-
2014-008, and should be submitted on or before March 6, 2014.

[[Page 8771]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03128 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P