[Federal Register Volume 78, Number 175 (Tuesday, September 10, 2013)]
[Notices]
[Pages 55320-55322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21936]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70320; File No. SR-NASDAQ-2013-111)
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Adopt a Time-Limited Waiver of the Monthly Subscription Fee for New and
Existing Subscribers to the Equity Trade Journal for Clearing Firms
Service under Rule 7060
September 4, 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 28, 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 Substance
of the Proposed Rule Change
NASDAQ is proposing to amend the fees assessed under Rule 7060.
NASDAQ will offer the fee waiver to new subscriptions for the month of
September 2013.
The text of the proposed rule change is below. Proposed new
language is underlined; proposed deletions are in brackets.
* * * * *
7060. Equity Trade Journal for Clearing Firms
The Equity Trade Journal for Clearing Firms service is accessed via
NasdaqTrader.com and provides member clearing firms with daily and ad
hoc reports of correspondent trading activity associated with the
subscribing member firm's clearing number. Equity
[[Page 55321]]
Trade Journal for Clearing Firms is offered [at no cost beginning
November 15, 2012, and ] according to the following fee schedule[
beginning January 2, 2013]:
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Number of correspondent Monthly
Tier MPIDs fee
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Tier 1............................ daily reports for 1-10 $750
correspondent MPIDs.
Tier 2............................ daily reports for 11-20 1,000
correspondent MPIDs.
Tier 3............................ daily reports for 21-30 1,250
correspondent MPIDs.
Tier 4............................ daily reports for 31-40 1,500
correspondent MPIDs.
Tier 5............................ daily reports for 41 or 1,750
more correspondent MPIDs.
------------------------------------------------------------------------
The above fees are waived for the month of September 2013 for new
and existing subscribers. Normal fees will apply to all subscribers
beginning October 2013.
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 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
The Exchange is proposing to waive subscription fees for the Equity
Trade Journal for Clearing Firms (``ETJ Clearing'') service for all
subscribers to the service during the month of September 2013. ETJ
Clearing provides clearing member firms with daily and ad hoc reports
of correspondent trading activity associated with the subscribing
member firm's clearing number \3\ and which is accessed via
NasdaqTrader.com. NASDAQ offered the service at no cost between
November 15, 2012 to January 2, 2013, and for a fee according to the
tiered fee schedule thereafter. In an effort to promote the service
among member firms that are not subscribers to the service, NASDAQ is
proposing an additional free period available to both new and existing
subscribers for the month of September 2013. NASDAQ is offering the
service at no cost for the month of September 2013 to encourage member
firms that have not yet subscribed to subscribe; however, both new and
existing subscribers will benefit from the free period. 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\ Clearing member firms have unique clearing numbers that
their correspondents use to identify the clearing firm associated
with each trade.
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2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and Section
6(b)(4) of the Act,\5\ 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 that
NASDAQ operates or controls, and it does not unfairly discriminate
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 September 2013 for all 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 the
Exchange is applying the waiver to all subscribers to the service and,
as a consequence, the fee waiver does not discriminate in any way among
member firms. NASDAQ notes that it is attempting to increase the
subscriber base of the service, which, as discussed below, may benefit
all subscribers. With a larger base of subscribers, the Exchange is
able to allocate the fixed costs of the service among more subscribers,
which in turn allows the Exchange to either delay or limit the
frequency of any increases to the fees assessed for the service in
response to increases in fixed costs. As such, any promotional free
period offered to encourage new subscription to the service also may
benefit existing subscribers. Accordingly, the proposed time-limited
fee waiver is equitable [sic] not unfairly discriminatory.
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\4\ 15 U.S.C. 78f.
\5\ 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. Waiver of the
subscription fee for all subscribers will result in lower fees, which
are generally seen as indicative of the presence of competition.
Moreover, the proposed fee waiver may promote broader subscription to
the service, thus allowing NASDAQ to allocate the fixed costs of the
subscription among a larger pool of subscribers and thereby delay or
reduce the frequency of future fee increases resulting from increases
in fixed costs experienced by NASDAQ. Finally, by providing a service
that allows members to run and store reports on its [sic]
correspondents' trading activity, NASDAQ hopes to promote competition
among other trading centers by providing useful analytical tools to its
member firms.
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 as it establishes or changes a due, fee, or other charge. 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
[[Page 55322]]
the purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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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 [email protected]. Please include
File Number SR-NASDAQ-2013-111 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-2013-111.
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 information that you wish to make
available publicly. All submissions should refer to File Number SR-
NASDAQ-2013-111, and should be submitted on or before October 1, 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. 2013-21936 Filed 9-9-13; 8:45 am]
BILLING CODE 8011-01-P