[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