Federal Register, Volume 82 Issue 39 (Wednesday, March 1, 2017)

[Federal Register Volume 82, Number 39 (Wednesday, March 1, 2017)]
[Notices]
[Page 12253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03982]

[[Page 12253]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80098; File No. SR-Nasdaq-2016-120]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Designation of a Longer Period for Commission Action on
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change, as Modified by Amendment No. 2, To Amend Rules 7034 and
7051 To Establish the Third Party Connectivity Service

February 24, 2017.
On August 16, 2016, the Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities
Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ a
proposed rule change to establish the Third Party Connectivity Service
under Rules 7034 and 7051. The proposed rule change was published for
comment in the Federal Register on September 2, 2016.\4\ The Commission
received one comment letter regarding the proposal.\5\ Nasdaq responded
to the comment letter.\6\ On October 5, 2016, the Commission designated
a longer period for Commission action on the proposed rule change.\7\
Subsequently, the Commission received three additional comment letters
regarding the proposal: One from Virtu Financial, another from Bats
responding to Nasdaq's Letter, and a third from SIFMA.\8\ On November
30, 2016, the Commission instituted proceedings under Section
19(b)(2)(B) of the Act \9\ to determine whether to approve or
disapprove the proposed rule change.\10\ Thereafter the Commission
received four comment letters.\11\ On January 26, 2017, the Exchange
filed Amendment No. 1 to the proposal,\12\ and responded to comments
from IEX, SIFMA, KCG Holdings, and Citadel Securities regarding the
proposed rule change.\13\ On January 31, the Exchange withdrew
Amendment No. 1 and on the same date filed Amendment No. 2 to the
proposed rule change.\14\ Thereafter, the Commission received two
comment letters: One from Bats\15\ and another from IEX.\16\
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\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 78713 (August 29,
2016), 81 FR 60768 (``Notice'').
\5\ See letter from Eric Swanson, Esq., General Counsel, Bats
Global Markets, Inc., to Brent J. Fields, Secretary, Securities and
Exchange Commission, dated September 12, 2016 (``Bats Letter'').
\6\ See letter from Jeffrey S. Davis, Vice President and General
Counsel, Nasdaq Stock Market LLC, to Brent J. Fields, Secretary,
Commission, dated October 4, 2016 (``Nasdaq Letter'').
\7\ See Securities Exchange Act Release No. 79049, 81 FR 70452
(October 12, 2016).
\8\ See letters from Douglas A. Cifu, Chief Executive Officer,
Virtu Financial, dated October 6, 2016, Eric Swanson, General
Counsel, Bats Global Markets, Inc., dated October 12, 2016, and
Melissa McGregor, Managing Director and Associate General Counsel,
Securities Industry and Financial Markets Association (``SIFMA''),
dated November 23, 2016, to Brent J. Fields, Secretary, Commission.
\9\ 15 U.S.C. 78s(b)(2)(B).
\10\ See Securities Exchange Act Release No. 79431, 81 FR 87981
(December 6, 2016) (``OIP''). Specifically, the Commission
instituted proceedings to allow for additional analysis of, and
input from commenters with respect to, the proposed rule change's
consistency with Sections 6(b)(4), 6(b)(5) and 6(b)(8) of the Act.
See id., 81 FR at 97983.
\11\ See letters from John Ramsay, Chief Market Policy Officer,
IEX Group, Inc., dated December 9, 2016, Melissa McGregor, Managing
Director and Associate General Counsel, SIFMA, dated December 20,
2016, John A. McCarthy, General Counsel, KCG Holdings, Inc., dated
December 23, 2016, and Adam C. Cooper, Senior Managing Director and
Chief Legal Officer, Citadel Securities, dated December 27, 2016, to
Brent J. Fields, Secretary, Commission.
\12\ See letter from T. Sean Bennett, Principal Associate
General Counsel, Nasdaq Inc., to Brent J. Fields, Secretary,
Commission, dated January 26, 2017.
\13\ See letter from T. Sean Bennett, Principal Associate
General Counsel, Nasdaq Inc., to Brent J. Fields, Secretary,
Commission, dated January 26, 2017.
\14\ See letter from T. Sean Bennett, Principal Associate
General Counsel, Nasdaq Inc., to Brent J. Fields, Secretary,
Commission, dated January 31, 2017. Amendment No. 2 is available on
the Commission's Web site at https://www.sec.gov/comments/sr-nasdaq-2016-120/nasdaq2016120-1545779-131353.pdf.
\15\ See letter from Eric Swanson, Esq., General Counsel, Bats
Global Markets, Inc., to Brent J. Fields, Secretary, Commission,
dated February 6, 2017.
\16\ See letter from John Ramsay, Chief Market Policy Officer,
IEX Group, Inc., to Brent J. Fields, Secretary Commission, dated
February 15, 2017.
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Section 19(b)(2) of the Act \17\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of the filing of the proposed rule
change. The Commission may, however, extend the period for issuing an
order approving or disapproving the proposed rule change by not more
than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on September 2, 2016.\18\ The 180th day after
publication of the notice of the filing of the proposed rule change in
the Federal Register is March 1, 2017.
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\17\ 15 U.S.C. 78s(b)(2).
\18\ See Notice.
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The Commission finds that it is appropriate to designate a longer
period within which to issue an order approving or disapproving the
proposed rule change, as modified by Amendment No. 2, so that it has
sufficient time to consider the proposal and the issues raised by the
commenters.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\19\ designates April 28, 2017, as the date by which the Commission
shall either approve or disapprove the proposed rule change (File No.
SR-Nasdaq-2016-120).
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\19\ 15 U.S.C. 78s(b)(2).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Robert W. Errett,
Deputy Secretary.
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\20\ 17 CFR 200.30-3(a)(57).
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[FR Doc. 2017-03982 Filed 2-28-17; 8:45 am]
BILLING CODE 8011-01-P