[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8769-8771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03128]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71506; File No. SR-BX-2014-008]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Not
Charge the Extranet Access Fee
February 7, 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 31, 2014, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the 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 the
Substance of the Proposed Rule Change
The Exchange proposes to not charge the extranet access fee
(``Extranet Access Fee'') set forth in BX Rule 7025.
The text of the proposed rule change is below. Proposed new
language is italicized; proposed deletions are bracketed.\3\
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\3\ Changes are marked to the rules of NASDAQ OMX BX, Inc. found
at http://nasdaqomxbx.cchwallstreet.com.
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* * * * *
7025. Extranet Access Fee
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 [of $1,000] per client organization
Customer Premises Equipment (``CPE'') Configuration. [If an extranet
provider uses multiple CPE Configurations to provide market data feeds
to any client organization, the monthly fee shall apply to each such
CPE Configuration.] For purposes of this Rule 7025, the term ``Customer
Premises Equipment Configuration'' shall mean
[[Page 8770]]
any line, circuit, router package, or other technical configuration
used by an extranet provider to provide a direct access connection to
the Exchange market data feeds to a recipient's site. No extranet
access fee will be charged for connectivity to market data feeds
containing only consolidated data. For purposes of this rule,
consolidated data includes data disseminated by the UTP SIP.
* * * * *
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 change the Extranet Access Fee as set
forth in BX Rule 7025 so that there is no charge. BX Rule 7025
currently provides that [sic] for extranet providers that establish a
connection with the Exchange to offer direct access connectivity to
market data feeds to be assessed a monthly access fee of $1,000 per
recipient Customer Premises Equipment (``CPE'') Configuration.\4\
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\4\ See Securities Exchange Act Release No. 71197 (December 30,
2013), 79 FR 679 (January 6, 2014) (SR-BX-2013-063). As defined in
BX Rule 7025, 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 the Exchange market data feeds to a recipient's site.
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Specifically, the Exchange proposes to reduce the Extranet Access
Fee from $1,000 per recipient CPE Configuration per month to free. An
Extranet Access Fee has been in place since its introduction in 2009
\5\ and provided for free during the first year of operation. At the
end of this period, the initial fee of $750 per recipient CPE
Configuration per month remained in place although it was never billed.
Since extranet providers have never yet been billed for this fee, the
Exchange now proposes to change BX Rule 7025 to reflect that there will
be no charge for extranet providers that establish a connection with
the Exchange to offer direct access connectivity to market data feeds.
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\5\ See Securities Exchange Act Release No. 59615 (March 20,
2009), 74 FR 14604 (March 31, 2009) (SR-BX-2009-005).
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Additionally, because the Exchange has thus far never collected an
Extranet Access Fee, it does not intend to charge the $1,000 Extranet
Access Fee for January 2014.\6\
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\6\ The Exchange will not back-bill any extranet providers for
extranet connections with the Exchange to offer direct access
connectivity to market data feeds.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and with Section 6(b)(4)
of the Act,\8\ in particular, in that 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. All similarly situated 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.
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\7\ 15 U.S.C. 78f [sic].
\8\ 15 U.S.C. 78f(b)(4).
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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. No
fee is being charged and this applies across all extranet providers and
none are 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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\9\ 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 should be
approved or disapproved.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-BX-2014-008 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-BX-2014-008. 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 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-BX-
2014-008, and should be submitted on or before March 6, 2014.
[[Page 8771]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03128 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P