[Federal Register Volume 78, Number 112 (Tuesday, June 11, 2013)]
[Notices]
[Pages 35083-35085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13775]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69700; File No. SR-NASDAQ-2013-080]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Adopt Fees for the MOPB Routing Option under Rule 7018(a)
June 5, 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 May 24, 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, 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
NASDAQ proposes to adopt fees for the new MOPB routing option under
Rule 7018(a). The Exchange has designated the proposed changes as
immediately effective, and proposes to implement the changes effective
with the implementation of the MOPB order on June 14, 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
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proposed rule change. The text of those 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 adopt fees for the new MOPB routing option.
On May 15, 2013, NASDAQ adopted the MOPB routing option, which will be
implemented in mid-June.\3\ NASDAQ is amending Rule 7018(a), which
concerns fees assessed to members for the use of the order execution
and routing services of the Nasdaq Market Center, to adopt associated
fees assessed for execution of MOPB routing option orders. NASDAQ has
determined to assess fees for the MOPB routing option that are
identical to the fees assessed for execution of MOPP routing option
orders. The MOPB routing option is very similar to the MOPP routing
option, in that both order types require the member firm to enter the
size and limit price of the order, which then routes only to protected
quotations (``Protected Quotes''),\4\ including the NASDAQ Market
Center, but only for displayed size. Unlike the MOPP routing option, an
order with the MOPB routing option will not route if, at the time of
entry, the MOPB order's quantity is insufficient to clear the entire
size of Protected Quotes, which are better than or equal to the order's
limit price. In such a case, a MOPB order will instead cancel back
immediately thus avoiding any execution. Also unlike the MOPP routing
option, if shares of an order with the MOPB routing option remain un-
executed after routing they will be immediately cancelled back to the
member rather than posting to the NASDAQ book.
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\3\ Securities Exchange Act Release No. 69631 (May 23, 2011)
(SR-NASDAQ-2013-078).
\4\ As defined by Rule 600(b)(58) of Regulation NMS.
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NASDAQ is proposing to assess the same fees for execution of MOPB
routing option orders as are assessed for execution of MOPP routing
option orders because of the similarity of the two routing options.
Specifically, NASDAQ is proposing to assess a fee of $0.0035 per share
executed for a MOPB order in a NASDAQ- \5\ or NYSE-listed \6\ security
or a Tape B security,\7\ except for those MOPB orders that execute at
the New York Stock Exchange, which will be charged $0.0027 per share
executed. NASDAQ notes that the fees assessed for MOPP routing option
orders are assessed only on a shares executed basis. As such, both MOPP
and MOPB routing options operate in the same manner for all executed
shares, with the only difference being that some MOPB orders are
canceled back in part or in full, as described above. Accordingly,
NASDAQ believes that it is appropriate to assess the same fee, based on
shares executed.
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\5\ Rule 7018(a)(1).
\6\ Rule 7018(a)(2).
\7\ Rule 7018(a)(3).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general, and with Section 6(b)(4) \9\ of the
Act, in particular. The Exchange believes it is consistent with Section
6(b)(4) of the Act 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. The proposed fee structure is equitable and not unfairly
discriminatory because the Exchange would uniformly assess members the
same fee structure to access the NASDAQ service. As noted, the MOPB
order routing option is very similar to the MOPP order routing option,
differing only in the initial requirements for order entry and how
unexecuted shares are handled. Both order routing options route to all
displayed protected quotes, including NASDAQ. As such, the costs
incurred by NASDAQ in the execution and routing of the shares for both
MOPP and MOPB routing options are identical and therefore assessing the
same fees is reasonable.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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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. The proposed fees
allow NASDAQ to recapture the costs associated with offering an order
routing option and the proposed fees are identical to the fees assessed
for a very similar order routing option. For these reasons, NASDAQ does
not believe that the proposed rule change will result in any burden on
competition whatsoever.
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,\10\ and paragraph (f) \11\ 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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
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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 [email protected]. Please include
File Number SR-NASDAQ-2013-080 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-2013-080. 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
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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 information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2013-080, and should be submitted on or before
July 2, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-13775 Filed 6-10-13; 8:45 am]
BILLING CODE 8011-01-P