[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62761-62762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-24683]
[[Page 62761]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70693; File No. SR-NASDAQ-2013-131]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Delay Implementation of the Dedicated OUCH Port Infrastructure Service
October 16, 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 October 4, 2013 The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange''), filed with the Securities and Exchange Commission
(``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
The Exchange proposes to delay implementation of the Dedicated OUCH
Port Infrastructure service under Rule 7015(g). NASDAQ will begin
offering the service in mid-first quarter of 2014, and will provide
public notice thereof at least five days prior to the implementation
date.
The text of the proposed rule change is available from NASDAQ's Web
site at http://nasdaq.cchwallstreet.com, at NASDAQ'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 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
On July 23, 2013, the Exchange filed a proposal with the Commission
to adopt a new Dedicated OUCH Port Infrastructure connectivity option
and related fee.\3\ At the time of filing, the Exchange anticipated
offering the service in October 2013, concurrent with certain hardware
upgrades occurring at NASDAQ, including upgrades to the OUCH port
infrastructure. NASDAQ is delaying implementation of the updates to the
OUCH port infrastructure, which consequently affects the rollout of the
Dedicated OUCH Port Infrastructure service making it impossible to
implement the service in October 2013.\4\ Accordingly, NASDAQ is
proposing to postpone the roll out of the service until mid-first
quarter 2014, by which time the Exchange believes the upgrades to the
OUCH port infrastructure will be completed. NASDAQ will not begin
assessing the subscription fee until the date the service is offered,
which NASDAQ will announce at least five days prior to the
implementation date. NASDAQ will continue to assess the installation
fee for any subscriptions to the service upon installation of the
dedicated hardware.\5\
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\3\ Securities Exchange Act Release No. 70036 (July 25, 2013),
78 FR 45993 (July 30, 2013) (SR-NASDAQ-2013-097).
\4\ \\ See http://www.nasdaqtrader.com/TraderNews.aspx?id=ETU2013-29.
\5\ NASDAQ has not received any subscription to the service
outside the expired installation fee waiver period.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act,\6\ which requires the rules of an
exchange 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. The Exchange believes that delay of service promotes
just and equitable principals of trade in that it postpones
implementation of the service until such a time that all users of OUCH
port infrastructure would have the same, upgraded hardware. The
proposed delay in offering the service is based on a delay to an
underlying technical upgrade to certain systems of the Exchange. As a
consequence, delaying implementation of the service until a time that
such upgraded hardware is available will further the goal of perfecting
fair and orderly markets, protecting investors and the public interest.
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\6\ 15 U.S.C. 78f(b)(5).
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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. NASDAQ believes
that the delay will not impact competition whatsoever as it will
maintain the status quo until such time that the OUCH port
infrastructure is upgraded, at which time the new service and
associated monthly fee will be implemented. In this regard, existing
subscribers to shared OUCH port infrastructure will continue to receive
the same service, unaffected by the delay in upgrading the OUCH port
infrastructure. Once upgraded, both subscribers to the shared
infrastructure and Dedicated OUCH Port Infrastructure subscribers will
operate on the same type of underlying hardware.
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 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) of the Act \7\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may
[[Page 62762]]
become operative immediately upon filing.
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest. If
the 30-day operative delay were not to be waived, then the Dedicated
OUCH Port Infrastructure service would go live and require payments of
fees even though the underlying hardware to support such a system would
not be operational. Without a waiver, fees would be collected from
subscribers of the Dedicated OUCH Port Infrastructure service before
the service would actually be useable. Thus, waiver of the operative
delay provides benefits to NASDAQ and to member firms subscribing to
the service. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\11\
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\11\ For 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 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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 [email protected]. Please include
File Number SR-NASDAQ-2013-131 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-2013-131. 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 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-2013-131, and should be submitted on or before
November 12, 2013.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24683 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P