Document ID: SEC-2013-1452-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market, LLC
Posted Date: 2013-08-14T04:00Z

[Federal Register Volume 78, Number 157 (Wednesday, August 14, 2013)]
[Notices]
[Pages 49566-49568]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19667]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70143; File No. SR-NASDAQ-2013-098]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Waive the Subscription Fee for New Subscribers to Latency Optics for a 
Limited Period

August 8, 2013.
    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 01, 2013, 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 and II 
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

    NASDAQ proposes to adopt a time-limited waiver of the monthly 
subscription fee for new subscribers to the Latency Optics add-on 
service to QView under Rule 7058(b). NASDAQ will offer the fee waiver 
to new subscriptions for the month of August 2013. The text of the 
proposed rule change is available on the Exchange's Web site at http://www.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, 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

[[Page 49567]]

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
    NASDAQ is proposing to waive subscription fees for the Latency 
Optics add on service to QView under Rule 7058(b) for new subscribers 
to the service during the month of August 2013. Latency Optics provides 
a subscribing member firm with real-time order latency and analytical 
tools to measure the historical latency of the member firm's order 
messages sent to and from the NASDAQ Market Center through the member 
firm's OUCH ports and received on ITCH ports. NASDAQ adopted Latency 
Optics in February 2013, and offered the service at no cost to 
subscribers from February 4, 2013 to April 1, 2013.\3\ There have been 
no new subscribers since the prior free period ended on April 1, so 
NASDAQ is now proposing an additional free period to encourage new 
customers to subscribe. NASDAQ has also added new functionality to the 
service, including more in depth order-level data and enhanced export 
capabilities. NASDAQ is offering the service at no cost to new 
subscribers for the month of August 2013 to encourage member firms that 
have not yet subscribed to subscribe. Normal fees will apply to all 
subscribers, new and existing, thereafter. In amending the rule text, 
NASDAQ is deleting references to the expired free period and timing of 
the service's launch.
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    \3\ Securities Exchange Act Release No. 68617 (January 10, 
2013), 78 FR 3480 (January 16, 2013)(SR-NASDAQ-2013-005).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \4\ in general, and with Sections 6(b)(4) and (5) \5\ 
of the Act, in particular, 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 which the 
Exchange operates or controls, and is not designed to permit unfair 
discrimination between customers, issuers, brokers, or dealers. The 
proposed fee waiver is reasonable because it will result in a reduction 
of fees during the month of August 2013 for new subscribers, thereby 
reducing the fees that they will ultimately pay for the service this 
year. The proposed fee waiver is equitable and not unfairly 
discriminatory because, as discussed above, all existing subscribers 
benefitted from a similar fee waiver that was in effect earlier this 
year, and there have been no new subscribers since April 1, 2013. 
Accordingly, existing subscribers will not be disadvantaged by the 
introduction of a fee waiver for new subscribers. NASDAQ further notes 
that it has enhanced the service and believes that more member firms 
would find it beneficial once subscribed. Moreover, as more subscribers 
sign up for the service, NASDAQ is able to spread the fixed costs of 
the service among a larger number of subscribers, which in turn reduces 
the likelihood of future fee increases in response to future increases 
in fixed costs. Accordingly, NASDAQ believes that efforts to garner 
additional subscribers for the service are equitable because they may 
be beneficial to all subscribers.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4), (5).
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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. Waiver of the 
subscription fee for new subscribers will promote broader subscription 
to the service, thus allowing NASDAQ to allocate the fixed costs of the 
subscription among a larger pool of subscribers and reduce the 
likelihood of future fee increases as the result of any future 
increases in fixed costs. In addition, the waiver will result in lower 
fees, which are generally seen as indicative of the presence of 
competition. Finally, by providing a service that allows members to 
evaluate latency of order messages, NASDAQ hopes to enhance its 
competitiveness vis-[agrave]-vis other trading centers.

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,\6\ and paragraph (f)(2) \7\ 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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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2).
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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-2013-098 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-NASDAQ-2013-098. 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 such filing also will be 
available for inspection and copying at the principal offices of 
NASDAQ. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only

[[Page 49568]]

information that you wish to make available publicly. All submissions 
should refer to File Number SR-NASDAQ-2013-098, and should be submitted 
on or before September 4, 2013.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-19667 Filed 8-13-13; 8:45 am]
BILLING CODE 8011-01-P