[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]



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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

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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