Document ID: SEC-2016-2213-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2016-12-16T05:00Z

[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)]
[Notices]
[Pages 91216-91220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30259]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79532; File No. SR-NASDAQ-2016-166]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Exchange's Transaction Fees at Chapter XV, Section 2

December 12, 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 December 1, 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, 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 Exchange's transaction fees at 
Chapter XV, Section 2, entitled ``NASDAQ Options Market--Fees and 
Rebates,'' which governs pricing for Nasdaq members using the NASDAQ 
Options Market (``NOM''), Nasdaq's facility for executing and routing 
standardized equity and index options. Nasdaq proposes to implement a 
new rebate for adding liquidity for Customer and Professional orders in 
Penny and Non-Penny Pilot Options as described further below.
    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

[[Page 91217]]

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 proposes to create an alternative method for earning a 
rebate for adding liquidity for both Customers \3\ and Professionals 
\4\ in Penny Pilot \5\ and Non-Penny Pilot Options. For Customers and 
Professionals transacting in Penny Pilot Options, the Exchange 
currently pays a volume-based tiered rebate to add liquidity. That 
rebate consists of 8 tiers, ranging from $0.20 per contract to $0.48 
per contract, with the volume requirements increasing with each tier. 
Thus, a NOM Participant would qualify for a rebate of $0.20 per 
contract in Tier 1 for Customers and Professionals if it added 
Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer 
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of up 
to 0.10% of total industry customer equity and ETF option average daily 
volume (``ADV'') contracts per day in a month. In comparison, a 
Participant would qualify for a rebate of $0.48 in Tier 8 for Customers 
and Professionals if it adds Customer, Professional, Firm, Non-NOM 
Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/
or Non-Penny Pilot Options above 0.75% or more of total industry 
customer equity and ETF option ADV contracts per day in a month, or if 
the Participant adds: (1) Customer and/or Professional liquidity in 
Penny Pilot Options and/or Non-Penny Pilot Options of 0.25% or more of 
total industry customer equity and ETF option ADV contracts per day in 
a month, and (2) has added liquidity in all securities through one or 
more of its Nasdaq Market Center MPIDs that represent 1.00% or more of 
Consolidated Volume in a month or qualifies for MARS.\6\
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    \3\ The term ``Customer'' or (``C'') applies to any transaction 
that is identified by a Participant for clearing in the Customer 
range at The Options Clearing Corporation (``OCC'') which is not for 
the account of broker or dealer or for the account of a 
``Professional'' (as that term is defined in Chapter I, Section 
1(a)(48)).
    \4\ The term ``Professional'' or (``P'') means any person or 
entity that (i) is not a broker or dealer in securities, and (ii) 
places more than 390 orders in listed options per day on average 
during a calendar month for its own beneficial account(s) pursuant 
to Chapter I, Section 1(a)(48). All Professional orders shall be 
appropriately marked by Participants.
    \5\ The Penny Pilot was established in March 2008. See 
Securities Exchange Act Release No. 57579 (March 28, 2008), 73 FR 
18587 (April 4, 2008) (SR-NASDAQ-2008-026) (notice of filing and 
immediate effectiveness establishing Penny Pilot). Since that date, 
the Penny Pilot has been expanded and is currently extended through 
December 31, 2016 or the date of permanent approval, if earlier. See 
Securities Exchange Act Release No. 78037 (June 10, 2016), 81 FR 
39299 (June 16, 2016) (SR-NASDAQ-2016-052).
    \6\ MARS refers to the Market Access and Routing Subsidy, which 
is set forth in Chapter XV, Section 6 [sic]. The MARS payment 
comprises four volume-based tiers, and is paid to NOM Participants 
that route eligible contracts to NOM through a participating NOM 
Participant's System. The MARS Payment will be paid on all executed 
Eligible Contracts that add liquidity. See Chapter XV, Section 6 
[sic].
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    Currently, Customers and Professionals transacting in Non-Penny 
Pilot Options on NOM receive a $0.80 per contract Rebate to Add 
Liquidity. In addition, a Participant that qualifies for a Customer or 
Professional Penny Pilot Options Rebate to Add Liquidity in Tiers 2, 3, 
4, 5 or 6 in a month will receive an additional $0.10 per contract Non-
Penny Pilot Options Rebate to Add Liquidity for each transaction which 
adds liquidity in Non-Penny Pilot Options in that month. Furthermore, a 
Participant that qualifies for a Customer or Professional Penny Pilot 
Options Rebate to Add Liquidity in Tiers 7 or 8 in a month will receive 
an additional $0.20 per contract Non-Penny Pilot Options Rebate to Add 
Liquidity for each transaction which adds liquidity in Non-Penny Pilot 
Options in that month.
    The Exchange now proposes to add an additional rebate to Customers 
and Professionals for adding liquidity in both Penny Pilot and Non-
Penny Pilot Options. Specifically, a NOM Participant will receive a 
$0.53 per contract Rebate to Add Liquidity in Penny Pilot Options as a 
Customer or Professional, and $1.00 per contract Rebate to Add 
Liquidity in Non-Penny Pilot Options as a Customer or Professional, if 
that NOM Participant transacts on the NASDAQ Stock Market through one 
or more of its Nasdaq Market Center MPIDs in the same month, and such 
transactions in all securities on the NASDAQ Stock Market that month 
through all of its Nasdaq Market Center MPIDs represent 3.00% or more 
of Consolidated Volume.\7\ Participants that qualify for this rebate 
would not be eligible for any other rebates in Tiers 1-8 or other 
rebate incentives on NOM for Customer and Professional order flow in 
Chapter XV, Section 2(1).
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    \7\ Consolidated Volume would be determined as set forth in 
Nasdaq Rule 7018(a).
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    For purposes of calculating the NOM Participant's total volume, the 
Exchange will add the NOM Participant's total volume transacted on the 
NASDAQ Stock Market in a given month across its Nasdaq Market Center 
MPIDs, and will divide this number by the total industry Consolidated 
Volume.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\9\ 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, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, while adopting a series of steps to improve the current market 
model, the Commission highlighted the importance of market forces in 
determining prices and SRO revenues and, also, recognized that current 
regulation of the market system ``has been remarkably successful in 
promoting market competition in its broader forms that are most 
important to investors and listed companies.'' \10\
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    \10\ Securities Exchange Act Release No. 51808 (June 9, 2005), 
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
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    Likewise, in NetCoalition v. Securities and Exchange Commission 
\11\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of 
a market-based approach in evaluating the fairness of market data fees 
against a challenge claiming that Congress mandated a cost-based 
approach.\12\ As the court emphasized, the Commission ``intended in 
Regulation NMS that `market forces, rather than regulatory 
requirements' play a role in determining the market data . . . to be 
made available to investors and at what cost.''\13\
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    \11\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \12\ See NetCoalition, at 534-535.
    \13\ Id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is 
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market 
system, buyers and sellers of securities, and the broker-dealers that 
act as their order-routing agents, have a wide range of choices of 
where to route orders for execution'; [and] `no exchange can afford to 
take its market share percentages for granted' because `no exchange 
possesses a monopoly, regulatory or otherwise, in the execution of 
order flow from broker

[[Page 91218]]

dealers'. . . .'' \14\ Although the court and the SEC were discussing 
the cash equities markets, the Exchange believes that these views apply 
with equal force to the options markets.
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    \14\ Id. at 539 (quoting Securities Exchange Act Release No. 
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) 
(SR-NYSEArca-2006-21)).
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    The Exchange notes that the purpose of the proposed rebates is to 
incentivize NOM Participants to transact greater volume on the NASDAQ 
Stock Market in order to qualify for a higher rebate on NOM. The 
Exchange believes that the amount of the rebate ($0.53 per contract for 
Penny Pilot Options and $1.00 per contract for Non-Penny Pilot Options) 
and the volume threshold for qualifying for the rebate (3.00% or more 
of Consolidated Volume) are reasonable. With respect to the rebate for 
Penny Pilot Options, the Exchange notes that the proposed $0.53 per 
contract rebate is the same as the highest rebate currently available 
to Customers and Professionals for adding liquidity in Penny Pilot 
Options.\15\ The Exchange believes the proposed rebate of $0.53 per 
contract is reasonable when compared to the highest rebate currently 
available to Customers and Professionals for adding liquidity in Penny 
Pilot Options, as the proposed rebate imposes comparable requirements 
on NOM Participants in order to qualify for that rebate. Similarly, the 
Exchange believes the proposed $1.00 rebate per contract for Non-Penny 
Pilot Options is reasonable because it is comparable to the rebates 
that a NOM Participant currently receives for adding liquidity in Non-
Penny Pilot Options as a Customer or Professional, which range from 
$0.80 per contract to $1.00 per contract.
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    \15\ As noted above, a NOM Participant will receive a rebate of 
$0.48 per contract for adding liquidity as a Customer or 
Professional in Penny Pilot Options if it qualifies for Tier 8. In 
addition, as noted in footnote c of Chapter XV, Section 2, a NOM 
Participant may receive an additional rebate of up to $0.05 per 
contract in Penny Pilot Options, for a total rebate of $0.53 per 
contract. Specifically, Participants that: (1) Add Customer, 
Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer 
liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 
1.15% or more of total industry customer equity and ETF option ADV 
contracts per day in a month will receive an additional $0.02 per 
contract Penny Pilot Options Customer and/or Professional Rebate to 
Add Liquidity for each transaction which adds liquidity in Penny 
Pilot Options in that month; or (2) add Customer, Professional, 
Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny 
Pilot Options and/or Non-Penny Pilot Options of 1.30% or more of 
total industry customer equity and ETF option ADV contracts per day 
in a month will receive an additional $0.05 per contract Penny Pilot 
Options Customer and/or Professional Rebate to Add Liquidity for 
each transaction which adds liquidity in Penny Pilot Options in that 
month; or (3)(a) add Customer, Professional, Firm, Non-NOM Market 
Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or 
Non-Penny Pilot Options above 0.80% of total industry customer 
equity and ETF option ADV contracts per day in a month, (b) add 
Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-
Dealer liquidity in Non-Penny Pilot Options above 0.15% of total 
industry customer equity and ETF option ADV contracts per day in a 
month, and (c) execute greater than 0.04% of Consolidated Volume 
(``CV'') via Market-on-Close/Limit-on-Close (``MOC/LOC'') volume 
within the NASDAQ Stock Market Closing Cross within a month will 
receive an additional $0.05 per contract Penny Pilot Options 
Customer and/or Professional Rebate to Add Liquidity for each 
transaction which adds liquidity in Penny Pilot Options in a month. 
Consolidated Volume shall mean the total consolidated volume 
reported to all consolidated transaction reporting plans by all 
exchanges and trade reporting facilities during a month in equity 
securities, excluding executed orders with a size of less than one 
round lot. For purposes of calculating Consolidated Volume and the 
extent of an equity member's trading activity, expressed as a 
percentage of or ratio to Consolidated Volume, the date of the 
annual reconstitution of the Russell Investments Indexes shall be 
excluded from both total Consolidated Volume and the member's 
trading activity.
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    The Exchange believes that the requirement that a NOM Participant 
transact 3.00% or more in Consolidated Volume on the NASDAQ Stock 
Market is reasonable because this requirement, while more stringent 
than other volume-based requirements that currently apply to NOM 
Participants that transact as Customers or Professionals in Penny Pilot 
and Non-Penny Pilot Options, reflects the fact that NOM Participants 
that qualify for this rebate would generally receive a larger rebate 
(for Penny Pilot Options, $0.53 per contract versus $0.20-$0.53 per 
contract and, for Non-Penny Pilot Options, $1.00 per contract versus 
$0.80-$1.00 per contract) than they would currently receive for 
transactions as Customer or Professionals in Penny Pilot and Non-Penny 
Pilot Options.
    The Exchange believes it is reasonable to make this rebate 
exclusive of any other rebates in Tiers 1-8 or other rebate incentives 
on NOM for Customer and Professional order flow in Chapter XV, Section 
2(1). As noted above, the proposed rebates are generally higher, and in 
some cases significantly higher, than the rebates that a NOM 
Participant may currently receive for adding liquidity in Penny Pilot 
and Non-Penny Pilot Options as a Customer or Professional. Given the 
size of the proposed rebates, the Exchange believes it is reasonable to 
make these rebates exclusive of other rebates on NOM for Customer and 
Professional order flow.
    The Exchange also believes the other aspects of this proposal are 
also reasonable, equitable and not unfairly discriminatory. First, the 
Exchange notes that the proposed rebates apply to both transactions in 
Penny Pilot and Non-Penny Pilot Options.
    Second, the Exchange believes that linking rebates on NOM to 
activity on the NASDAQ Stock Market is reasonable, equitable, and not 
unfairly discriminatory. The Exchange notes that previous and current 
rebates offered by NOM relate to activity on the NASDAQ Stock 
Market.\16\ Similarly, the NASDAQ Stock Market offers reduced 
transaction fees that are based on activity on NOM.\17\ Moreover, the 
Exchange notes that any NOM Options Participant may trade equities on 
the NASDAQ Stock Market because they are approved members.\18\
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    \16\ For example, in SR-NASDAQ-2015-047, the Exchange proposed 
to make NOM Participants that added liquidity in Penny Pilot Stocks 
[sic] as a Customer or Professional eligible for the Tier 8 rebate 
if, among other things, the Participant has certified for the 
Investor Support Program set forth in Rule 7014, or if the 
Participant qualified for rebates under the Qualified Market Maker 
(``QMM'') Program set forth in Rule 7014. See Securities Exchange 
Act Release No. 74931 (May 12, 2015), 80 FR 28308 (May 18, 2015) 
(SR-NASDAQ-2015-047).
    Currently, footnote c of the NOM fee schedule provides that 
Participants that (1) add Customer, Professional, Firm, Non-NOM 
Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options 
and/or Non-Penny Pilot Options above 0.80% of total industry 
customer equity and ETF option ADV contracts per day in a month, (2) 
add Customer, Professional, Firm, Non-NOM Market Maker and/or 
Broker-Dealer liquidity in Non-Penny Pilot Options above 0.15% of 
total industry customer equity and ETF option ADV contracts per day 
in a month, and (3) execute greater than 0.04% of Consolidated 
Volume (``CV'') via Market-on-Close/Limit-on-Close (``MOC/LOC'') 
volume within the NASDAQ Stock Market Closing Cross within a month 
will receive an additional $0.05 per contract Penny Pilot Options 
Customer and/or Professional Rebate to Add Liquidity for each 
transaction which adds liquidity in Penny Pilot Options in a month.
    \17\ For example, Nasdaq charges a reduced transaction fee of 
$0.00295 if the member adds Customer, Professional, Firm, Non-NOM 
Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options 
and/or Non-Penny Pilot Options of 1.15% or more of total industry 
ADV in the customer clearing range for Equity and ETF option 
contracts per day in a month on NOM. See Nasdaq Rule 7018.
    \18\ Although a NOM Participant may incur additional labor and/
or costs to establish connectivity to the NASDAQ Stock Market, there 
are no additional membership fees for NOM Participants that want to 
transact on the NASDAQ Stock Market.
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    Third, while the requirements for qualifying for the proposed 
rebates may be more stringent than other requirements for qualifying 
for other rebates currently offered by NOM, the Exchange believes that 
these requirements are proportionate to the amount of the proposed 
rebates and equitably reflect the purpose of the proposed rebates, 
which is to incentivize NOM Participants to transact greater volume on 
the NASDAQ Stock Market. Moreover, all similarly-situated NOM 
Participants, e.g., those that add liquidity in either Penny Pilot

[[Page 91219]]

or Non-Penny Pilot Options as either Customers or Professionals and 
also transact on the NASDAQ Stock Market, are equally capable of 
qualifying for the proposed rebates, and the same rebates will be paid 
to all NOM Participants that qualify for them.
    Fourth, the Exchange believes that it is reasonable, equitable and 
not unfairly discriminatory to offer this rebate to NOM Participants 
that add liquidity as Customers or Professionals, and not to offer this 
rebate to NOM Participants that add liquidity as Firms,\19\ NOM Market 
Makers,\20\ non-NOM Market Makers, or Broker-Dealers.\21\ Nasdaq notes 
that Customer liquidity offers unique benefits to the market which 
benefits all market participants by providing more trading 
opportunities, which attracts Specialists and Market Makers. An 
increase in the activity of these market participants in turn 
facilitates tighter spreads, which may cause an additional 
corresponding increase in order flow from other market participants. 
The Exchange believes that encouraging Participants to add Professional 
liquidity is similarly beneficial, as the rebates may cause market 
participants to select NOM as a venue to send Professional order flow, 
increasing competition among the exchanges. As with Customer liquidity, 
the Exchange believes that increased Professional additional order flow 
should benefit other market participants.
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    \19\ The term ``Firm'' or (``F'') applies to any transaction 
that is identified by a Participant for clearing in the Firm range 
at OCC.
    \20\ The term ``NOM Market Maker'' or (``M'') is a Participant 
that has registered as a Market Maker on NOM pursuant to Chapter 
VII, Section 2, and must also remain in good standing pursuant to 
Chapter VII, Section 4. In order to receive NOM Market Maker pricing 
in all securities, the Participant must be registered as a NOM 
Market Maker in at least one security.
    \21\ The term ``Broker-Dealer'' or (``B'') applies to any 
transaction which is not subject to any of the other transaction 
fees applicable within a particular category.
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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 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. In terms of inter-market 
competition, the Exchange 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, the Exchange must continually adjust 
its fees 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 in response, and because 
market participants may readily adjust their order routing practices, 
the Exchange believes that the degree to which fee changes in this 
market may impose any burden on competition is extremely limited.
    The Exchange does not believe that the proposed rebates will impose 
any burden on competition that is not necessary or appropriate. The 
Exchange notes that the purpose of the proposed rebate is to 
incentivize NOM Participants to transact on the NASDAQ Stock Market. 
All similarly-situated NOM Participants, e.g., those that add liquidity 
in either Penny Pilot or Non-Penny Pilot Options as either Customers or 
Professionals and also transact the requisite volumes on the NASDAQ 
Stock Market, are equally capable of qualifying for the proposed 
rebates. Additionally, the Exchange will pay the same rebates to all 
NOM Participants that qualify for them. The Exchange believes that 
Customer and Professional order flow provides unique benefits to all 
participants on the Exchange and may even facilitate inter-market 
competition, and is therefore offering the proposed rebates to NOM 
Participants that add liquidity as either a Customer or a Professional 
accordingly. With respect to linking the proposed rebates to a 
participant's activity on the NASDAQ Stock Market, NOM currently offers 
rebates that are based on activity on the NASDAQ Stock Market. 
Similarly, the NASDAQ Stock Market currently offers reduced transaction 
fees that are based on activity on NOM. Finally, because they are 
approved members, any NOM Options Participant may trade equities on the 
NASDAQ Stock Market and therefore attempt to qualify for the proposed 
rebates.

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.\22\
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    \22\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2016-166 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2016-166. 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

[[Page 91220]]

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-NASDAQ-2016-166 and should be submitted on or before 
January 6, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-30259 Filed 12-15-16; 8:45 am]
 BILLING CODE 8011-01-P