Document ID: SEC-2015-0816-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market, LLC
Posted Date: 2015-05-13T04:00Z

[Federal Register Volume 80, Number 92 (Wednesday, May 13, 2015)]
[Notices]
[Pages 27352-27354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11481]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74895; File No. SR-NASDAQ-2015-050]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Billing Policies

May 7, 2015.
    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 1, 2015, 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 7007, and re-title it 
``Collection of Exchange Fees and Other Claims and Billing Policy,'' 
and to require NASDAQ members to submit billing disputes within a 
certain time period.
    While changes to the Pricing Schedule [sic] pursuant to this 
proposal are effective upon filing, the Exchange has designated the 
proposed amendment to be operative on July 1, 2015.
    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 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 Rule 7007, 
which was recently filed,\3\ to require all pricing disputes to be 
submitted to the Exchange in writing \4\ and accompanied by supporting 
documentation within sixty days of receipt of an invoice. The Exchange 
believes that this practice will

[[Page 27353]]

conserve Exchange resources, which are expended when untimely billing 
disputes require staff to research applicable fees and order 
information beyond two months after the invoice was issued.
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    \3\ See Securities Exchange Act Release No. 74823 (April 28, 
2015) (SR-NASDAQ-2015-046) (amending Rule 7007).
    \4\ The Exchange invoice specifies the Exchange contact persons 
with whom to dispute the invoice.
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    The sixty days limitation would apply to invoices for transactional 
activity occurring in July 2015 and thereafter.\5\ The Exchange 
proposes to apply the billing policy in Rule 7007 to the following 7000 
series Rules: 7001 (Membership Fees), 7014 (Market Quality Incentive 
Programs: Investor Support Program), 7015 (Access Services), 7016 
(Nasdaq Risk Management), 7018 (Nasdaq Market Center Order Execution 
and Routing), 7021 (NasdaqTrader.com Trading and Compliance Data 
Package Fee), 7024 (Clearly Erroneous Module), 7027 (Aggregation of 
Activity of Affiliated Members), 7029 (Installation, Removal or 
Relocation), 7030 (Other Services), 7034 (Co-Location Services), 7038 
(Step-Outs and Sales Fees Transfers), 7041 (Nasdaq Regulation 
Reconnaissance Service), 7042 (Non-Tape Riskless Submissions), 7043 
(Inclusion of Transaction Fees in Clearing Reports Submitted to ACT), 
7049 (Nasdaq InterACT), 7051 (Direct Connectivity to Nasdaq), 7055 
(Short Sale Monitor), 7058 (QView), 7060 (Equity Trade Journal for 
Clearing Firms) and 7061 (Limit Locator).
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    \5\ This proposal would not apply to invoices related to June 
2015 billing.
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    Further, this proposal would provide a cost savings to the Exchange 
in that it would alleviate administrative burdens related to belated 
billing disputes, which divert staff resources away from the Exchange's 
regulatory and business purposes. A similar requirement with respect to 
initiating billing disputes is in place today for Options Participants 
on NASDAQ Options Market LLC (``NOM'').\6\
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    \6\ See NOM Rules at Chapter XV, Section 7, entitled ``NASDAQ 
Options Fee Disputes.''
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    In addition, the Exchange proposes to amend the title of Exchange 
Rule 7007 from ``Collection of Exchange Fees and Other Claims'' to 
``Collection of Exchange Fees and Other Claims and Billing Policy.'' 
The Exchange believes that the proposed title provides a more specific 
description of Rule 7007.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it 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, 
by providing a uniform practice for disputing fees.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the requirement that billing disputes for 
certain specified fees and rebates must be submitted to the Exchange 
within sixty days from receipt of the invoice will set objective 
standards and will be fair to members. The proposal equally applies to 
all NASDAQ equity members. Also, the Exchange's administrative costs 
would be lowered as a result of this policy.
    The Exchange believes that sixty days is ample time to review an 
invoice and dispute any pricing related to the transactions for that 
time period. An identical policy applies today with respect to NOM 
billing.\9\ The Exchange is seeking to apply this policy to all NASDAQ 
members alike in the same manner.
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    \9\ See Chapter XV, Section 7 in the NOM Rules.
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The billing policy would 
apply uniformly to all NASDAQ equity members as it does today with all 
NOM Participants. All NASDAQ members would be subject to this policy.
    The Exchange believes that this practice will conserve Exchange 
resources, which are expended when untimely billing disputes require 
staff to research applicable fees and order information beyond two 
months after the invoice is issued.

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

    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)(iii) of the Act \10\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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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-2015-050 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-2015-050. 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

[[Page 27354]]

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-2015-050, and should be submitted on or before 
June 3, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-11481 Filed 5-12-15; 8:45 am]
 BILLING CODE 8011-01-P