[Federal Register Volume 85, Number 72 (Tuesday, April 14, 2020)]
[Notices]
[Pages 20794-20796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07768]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88587; File No. SR-NASDAQ-2020-015]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Rule 4759

April 8, 2020.
    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 3, 2020, 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 amend Rule 4759 (Data Feeds Utilized) to 
include the Long-Term Stock Exchange, Inc. (``LTSE'') in the list of 
proprietary and network processor feeds that the Exchange utilizes for 
the handling, routing, and execution of orders as well as regulatory 
compliance processes related to those functions.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaq.cchwallstreet.com, at the principal office of 
the Exchange, 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 May 10, 2019, the Commission approved the Long-Term Stock 
Exchange, Inc. (``LTSE'') as a national securities exchange.\3\ In 
anticipation of the planned launch of LTSE,\4\ the Exchange proposes to 
amend and update Rule 4759, which lists the proprietary and network 
processor feeds that the Exchange utilizes for the handling, routing 
and execution of orders as well as regulatory compliance processes 
related to those functions. Specifically, the Exchange proposes to 
specify that LTSE will be an additional market center source for 
quotation data

[[Page 20795]]

by including LTSE in its table in Rule 4759.\5\
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    \3\ See Securities Exchange Act Release No. 85828 (May 10, 
2019), 84 FR 21841 (May 15, 2019) (File No. 10-234) (Order approving 
LTSE application for registration as a national securities 
exchange).
    \4\ LTSE expects to launch on May 15, 2020. See LTSE Update on 
adjusted phase-in schedule published on March 18, 2020, available 
at: https://longtermstockexchange.com/static/MA-2020-006-14f9b362b7bd1103c9545525d246e778.pdf.
    \5\ A similar proposed rule change has been proposed by one 
other exchange. See Securities Exchange Act Release No. 88313 (March 
3, 2020), 85 FR 13684 (March 9, 2020) (SR-IEX-2020-03).
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    As proposed, the Exchange will use securities information processor 
(``SIP'') data, i.e., CQS SIP data, for securities reported under the 
Consolidated Quotation Services and Consolidated Quotation Plan and 
UQDF SIP data for securities reported under the Nasdaq Unlisted Trading 
Privileges Plan to obtain LTSE quotation information.\6\ While the 
Exchange currently utilizes proprietary market data as the primary 
source of quotation data for certain markets that provide a reliable 
direct feed,\7\ the Exchange will solely utilize the SIP data for LTSE 
because LTSE will only distribute market data using the SIPs.\8\ No 
secondary source for LTSE market data will be specified because LTSE 
has announced that it will not maintain a proprietary market data 
feed.\9\
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    \6\ The LTSE's Market Center Originator ID on the SIP will be 
``L''. See LTSE Updated FAQ for Exchange Operations published on 
February 28, 2020, available at: https://longtermstockexchange.com/static/MA-2020-003-f00ac3fc666c5521974cd55976404019.pdf.
    \7\ The Exchange utilizes proprietary market data as the Primary 
Source of quotation data for the following markets: NYSE American, 
Nasdaq BX, CBOE EDGA, CBOE EDGX, NYSE, NYSE Arca, Nasdaq, Nasdaq 
PSX, CBOE BYX, and CBOE BZX.
    \8\ See LTSE Updated FAQ for Exchange Operations published on 
February 28, 2020, available at: https://longtermstockexchange.com/static/MA-2020-003-f00ac3fc666c5521974cd55976404019.pdf.
    \9\ See id.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ in particular, in that it is designed 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.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change removes 
impediments to and perfects the mechanism of a free and open market 
because adding LTSE to its list of market centers for which the 
exchange consumes quotation data will provide clarity to market 
participants. Additionally, it is necessary and consistent with the 
public interest and the protection of investors to add LTSE to the 
Exchange's table in Rule 4759 in order to provide transparency with 
respect to all the proprietary and network processor feeds from which 
the Exchange obtains market data. Further, the Exchange also believes 
that it is consistent with the Act to specify that the Exchange will 
consume quotation data for LTSE from the SIP feed, to enhance clarity 
to market participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change is not 
deigned to address any competitive issue; instead, its purpose is to 
enhance transparency with respect to the operation of the Exchange and 
its use of 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

    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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of 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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    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-2020-015 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-2020-015. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NASDAQ-2020-015 and should be submitted 
on or before May 5, 2020.


[[Page 20796]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07768 Filed 4-13-20; 8:45 am]
 BILLING CODE 8011-01-P