[Federal Register Volume 77, Number 194 (Friday, October 5, 2012)]
[Notices]
[Pages 61041-61042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24573]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67952; File No. SR-BX-2012-061]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; 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 BX, Inc. (``BX'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
BX proposes to adopt the QView service under Rule 7058. 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://nasdaqomxbx.cchwallstreet.com, at BX'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 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 BX
market activity as compared to other BX 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
A member firm must subscribe to TradeInfo BX \4\ to subscribe to
QView. QView was developed to work in conjunction with TradeInfo BX, so
that a subscriber to QView is able to 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\
---------------------------------------------------------------------------
\4\ TradeInfo BX is a web-based tool that, among other things,
allows users access to all of the BX order and execution information
for their entire firm for both equities and options through a single
interface. TradeInfo BX is offered complimentary as part of the
Workstation or separately for a fee of $95 per user per month. See
Rule 7015.
\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.
---------------------------------------------------------------------------
BX 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\ BX 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.
---------------------------------------------------------------------------
\6\ See NASDAQ Rule 7058.
---------------------------------------------------------------------------
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
[[Page 61042]]
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 BX 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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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-BX-2012-061 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-BX-2012-061. 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 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-BX-2012-061 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\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24573 Filed 10-4-12; 8:45 am]
BILLING CODE 8011-01-P