[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)]
[Notices]
[Pages 26844-26846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10371]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77737; File No. SR-NASDAQ-2016-060]


Self-Regulatory Organizations; the NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Update Public Disclosure of Exchange Usage of Market Data

April 28, 2016.
    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 April 26, 2016, 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to update Exchange Rule 4759 and to amend the 
public disclosure of the sources of data that the Exchange utilizes 
when performing (1) order handling and execution; (2) order routing; 
and (3) related compliance processes.
    The text of the proposed rule change is below. Proposed new 
language is

[[Page 26845]]

italicized and deleted language is bracketed.
* * * * *
4759. Data Feeds Utilized
    The NASDAQ System utilizes the below proprietary and network 
processor feeds for the handling, routing, and execution of orders, as 
well as for the regulatory compliance processes related to those 
functions. The Secondary Source of data is, where applicable, utilized 
only in emergency market conditions and only until those emergency 
conditions are resolved.

------------------------------------------------------------------------
          Market center             Primary source     Secondary source
------------------------------------------------------------------------
A--NYSE MKT (AMEX)..............  NYSE MKT OpenBook   CQS/UQDF
                                   Ultra.
B--NASDAQ OMX BX................  BX ITCH 5.0.......  CQS/UQDF
C--NSX..........................  CQS/UQDF..........  n/a
D--FINRA ADF....................  CQS/UQDF..........  n/a
J--DirectEdge A.................  BATS PITCH........  CQS/UQDF
K--DirectEdge X.................  BATS PITCH........  CQS/UQDF
M--[CSX]CHX.....................  [CQS/UQDF]CHX Book  [n/a]CQS/UQDF
                                   Feed.
N--NYSE.........................  NYSE OpenBook       CQS/UQDF
                                   Ultra.
P--NYSE Arca....................  NYSE ARCA XDP.....  CQS/UQDF
T/Q--NASDAQ.....................  ITCH 5.0..........  CQS/UQDF
X--NASDAQ OMX PSX...............  PSX ITCH 5.0......  CQS/UQDF
Y--BATS Y-Exchange..............  BATS PITCH........  CQS/UQDF
Z--BATS Exchange................  BATS PITCH........  CQS/UQDF
------------------------------------------------------------------------

* * * * *

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to update and amend the table in Exchange 
Rule 4759 that sets forth on a market-by-market basis the specific 
network processor and proprietary data feeds that the Exchange utilizes 
for the handling, routing, and execution of orders, and for performing 
the regulatory compliance checks related to each of those functions.
    Specifically, the table will be amended to update the symbol for 
the Chicago Stock Exchange, Inc. from ``CSX'' to ``CHX'', as well as to 
update the primary and secondary sources in the table for CHX. The 
primary source will be CHX Book Feed and the former primary source, 
CQS/UQDF, will become the secondary source. The change to the primary 
source reflects the Exchange's effort to increase the amount of data it 
gathers.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\3\ in general and with 
Sections [sic] 6(b)(5) of the Act,\4\ in particular in that it is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, 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.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to amend the table in 
Exchange Rule 4759 to update the symbol for the Chicago Stock Exchange, 
Inc. and to amend the primary and secondary sources of data for CHX 
that the Exchange utilizes when performing (1) order handling and 
execution; (2) order routing; and (3) related compliance processes will 
ensure that Exchange Rule 4759 correctly identifies and publicly states 
on a market-by-market basis all of the specific network processor and 
proprietary data feeds that the Exchange utilizes for the handling, 
routing, and execution of orders, and for performing the regulatory 
compliance checks related to each of those functions. The Exchange also 
believes that the proposed rule change removes impediments to and 
perfects the mechanism of a free and open market and protects investors 
and the public interest because it provides additional specificity, 
clarity and transparency.

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. To 
the contrary, the Exchange believes the proposal will enhance 
competition because including all of the correct information for the 
exchanges enhances transparency and enables investors to better assess 
the quality of the Exchange's execution and routing services.

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

    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) \5\ of the Act and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.

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[[Page 26846]]

    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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.

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-2016-060 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2016-060. 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 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office 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-2016-060, and should 
be submitted on or before May 25, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-10371 Filed 5-3-16; 8:45 am]
 BILLING CODE 8011-01-P