[Federal Register Volume 79, Number 7 (Friday, January 10, 2014)]
[Notices]
[Pages 1906-1908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00211]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71236; File No. SR-PHLX-2014-01]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Clarify
That an Extranet Access Fee is Not Charged
January 6, 2014.
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 January 2, 2014, NASDAQ OMX PHLX LLC (``Phlx'' or the ``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 clarify that it does not charge an
extranet access fee (``Extranet Access Fee'').
The text of the proposed rule change is below. Proposed new
language is italicized.
* * * * *
NASDAQ OMX PHLX LLC \1\ PRICING SCHEDULE
* * * * *
VIII. NASDAQ OMX PSX FEES
* * * * *
Market Data Distributor Fees
(a)-(c) No change.
Extranet Access
Extranet providers that establish a connection with the Exchange to
offer direct access connectivity to market data feeds shall not be
assessed a monthly access fee per recipient Customer Premises Equipment
(``CPE'') Configuration. For purposes of this rule, the term ``Customer
Premises Equipment Configuration'' shall mean any line, circuit, router
package, or
[[Page 1907]]
other technical configuration used by an extranet provider to provide a
direct access connection to Exchange market data feeds to a recipient's
site.
Administrative Reports
No change.
* * * * *
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
The Exchange is proposing to clarify that the Exchange does not
charge an Extranet Access Fee, unlike The NASDAQ Stock Market LLC
(``NASDAQ'') \3\ or NASDAQ OMX BX, Inc. (``BX'') \4\.
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\3\ See NASDAQ Rule 7025.
\4\ See BX Rule 7025.
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Specifically, the proposed rule change provides that extranet
providers that establish a connection with the Exchange to offer direct
access connectivity to market data feeds will not be assessed a monthly
access fee per recipient Customer Premises Equipment (``CPE'')
Configuration.\5\
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\5\ As defined in the proposed rule text, a ``Customer Premises
Equipment Configuration'' means any line, circuit, router package,
or other technical configuration used by an extranet provider to
provide a direct access connection to Exchange market data feeds to
a recipient's site.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and with Section 6(b)(5) of the Act,\7\
in particular. The Exchange believes the proposal furthers the
objectives of Section 6(b)(5) of the Act \8\ in that it is designed 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 and is not designed to permit unfair discrimination between
customer, issuers, brokers and dealers. The Exchange is proposing to
add clarifying language that states that extranet providers that
establish an extranet connection with the Exchange to access market
data feeds from the Exchange will not be subject to an Extranet Access
Fee. Accordingly, the Exchange believes that it is consistent with the
protection of investors and the public interest to avoid potential
market participant confusion that may be caused by the omission of the
proposed rule text.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
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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. The
proposed rule change clarifies that no fee is being instituted and this
applies across all extranet providers and none are [sic] compelled to
establish a connection with the Exchange to offer access connectivity
to market data feeds.
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 \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ 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 become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The proposed rule
change presents no novel issues. Waiver will allow the Exchange to
immediately clarify that it does not charge an extranet access fee,
thereby reducing the potential for confusion. For these reasons, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ 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 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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(2)(B).
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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-PHLX-2014-01 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-PHLX-2014-01. 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
[[Page 1908]]
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 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-2014-01, and should be
submitted on or before January 31, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00211 Filed 1-9-14; 8:45 am]
BILLING CODE 8011-01-P