[Federal Register Volume 77, Number 194 (Friday, October 5, 2012)]
[Notices]
[Pages 61039-61041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24572]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67951; File No. SR-Phlx-2012-114]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Offer the
QView Service
October 1, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 21, 2012, NASDAQ OMX PHLX LLC (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the 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
PHLX proposes to modify its fee schedule concerning NASDAQ OMX PSX
(``PSX'') fees to offer the QView service. The Exchange is proposing to
implement the rule change as soon as possible, but in no event greater
than thirty calendar days from the filing date of this proposal. The
text of the proposed rule change is available at http://nasdaqomxphlx.cchwallstreet.com, at PHLX's principal office, 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 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 III 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 Exchange is proposing to adopt the new QView service. QView is
a web-based, front-end application, which provides a subscribing member
firm with increased transparency over its trading activity on the
Exchange's equities market, NASDAQ OMX PSX (``PSX''), by allowing the
member firm to track its Exchange order flow.\3\ In particular, a QView
subscriber is able to track all of its trading activity on the Exchange
through detailed order and execution summaries. QView provides a
subscribing member with statistics concerning the total number of
executions, total volume, dollar value of executions, executions by
symbol, add versus remove, buy versus sell, display versus non-display,
number of open orders, use of routing strategies and liquidity code
designation. QView also provides information concerning how the
subscribing member firm ranks in PSX market activity as compared to
other PSX participants. The data provided by QView is available to the
subscribing member both in real-time and historically. Subscribing
member firms are also able to export such data from QView to other
systems.
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\3\ A subscribing member possessing multiple MPIDs must
designate the MPIDs for which it would like to receive QView
information. A subscribing member, however, may elect to monitor
only the activity occurring through certain ports associated with a
subscribed MPID. A member firm seeking to subscribe to QView that
accesses the Exchange through a sponsored arrangement with another
Exchange member must provide the Exchange with an executed sponsored
access data agreement prior to subscribing to QView. The sponsored
access data agreement makes clear that the subscribing member firm
is permitted to designate the sponsoring firm's MPID for
subscription to QView. A copy of this form may be found here: http://www.nasdaqtrader.com/content/productsservices/trading/QView/QView_SponsoredAccessAgreement.pdf.
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A member firm must subscribe to TradeInfo PSX \4\ to subscribe to
QView. QView was developed to work in conjunction with TradeInfo PSX,
so that a subscriber to QView is able to
[[Page 61040]]
seamlessly filter down to the specific order or execution information
of the orders and executions provided in the QView dashboard interface.
The dashboard also allows a QView subscriber to track his/her
executions and open orders in real-time, as well as view its executions
and open orders as an overall summary, with all totals displayed by
quantity, share volume, or dollar value. As such, QView provides both
an overall summary of a subscribing member firm's activity, as well as
detailed order and execution information, thus providing the subscriber
a comprehensive tool to track its trading activity.\5\
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\4\ TradeInfo PSX is a web-based tool that, among other things,
allows users access to all of the PSX order and execution
information for their entire firm for both equities and options
through a single interface. TradeInfo PSX is offered complimentary
as part of the Workstation or separately for a fee of $95 per user,
per month. See NASDAQ OMX PHLX LLC PRICING SCHEDULE, VIII. NASDAQ
OMX PSX FEES.
\5\ For example, QView will inform a subscribing member of its
executions in a particular day and provide a link to the details of
those executions, which is provided by TradeInfo.
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PHLX notes that an identical QView service is currently offered by
its sister exchange, The NASDAQ Stock Market LLC for a fee of $600 per
month, per member firm.\6\ PHLX is proposing to offer QView at no cost
at the present time, but may assess a fee in the future. If it
determines to assess a fee, the Exchange will file a rule change
proposal with the Commission.
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\6\ See NASDAQ Rule 7058.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b)(5) of the Act,\7\ which requires that the rules of an
exchange be designed to prevent fraudulent and manipulative acts and
practices, promote just and equitable principles of trade, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, protect investors and the public interest. The
Exchange believes the proposed rule change is consistent with these
requirements because the proposed service provides subscribing members
with a useful analytical tool with which they may access information
concerning their order and trade activity occurring on the Exchange.
With this information, subscribing members may more closely monitor and
analyze such activity, and make more informed investment decisions.
Accordingly, the Exchange believes that the proposed service will
further goals of the Act by providing subscribing members with greater
transparency with respect to their order activity on the Exchange. As
noted above, the proposed QView service is identical to the NASDAQ
QView service currently offered to NASDAQ members.
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\7\ 15 U.S.C. 78f(b)(5).
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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. To
the contrary, the proposed rule change is pro-competitive in that it
will allow the Exchange to disseminate a new service on a voluntary
basis. QView is voluntary on the part of the Exchange, which is not
required to offer such products and services, and voluntary on the part
of prospective users that are not required to use it and may obtain the
information from other sources.
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: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay so that it may offer QView
at the earliest reasonable time possible. The Exchange notes that the
services offered by PSX QView are identical to services offered by
NASDAQ's QView. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would allow the Exchange to
immediately offer its QView service so members may benefit immediately
by tracking their order flow on the Exchange. For this reason, the
Commission designates the proposed rule change to be operative upon the
operative date of the Filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6)(iii). 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.
\11\ Id.
\12\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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.
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 [email protected]. Please include
File Number SR-Phlx-2012-114 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.
All submissions should refer to File Number SR-Phlx-2012-114. 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
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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 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-Phlx-2012-114 and should be submitted on or before
October 26, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24572 Filed 10-4-12; 8:45 am]
BILLING CODE 8011-01-P