
[Federal Register Volume 79, Number 168 (Friday, August 29, 2014)]
[Notices]
[Pages 51628-51630]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-20559]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72911; File No. SR-NASDAQ-2014-086]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Offer a Volume Discount for the Bulk Purchase of Aged Reports Within 
the Category of Historical Research and Administrative Reports Under 
NASDAQ Rule 7022

August 25, 2014.

    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 August 22, 2014, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III 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 a proposal to [sic] offer a volume 
discount for the bulk purchase of aged reports within the category of 
Historical Research and Administrative Reports under NASDAQ Rule 7022.
* * * * *

7022. Historical Research and Administrative Reports

    (a) No Change.
    (b) The charge to be paid by the purchaser of an Historical 
Research Report regarding a Nasdaq security that wishes to obtain a 
license to redistribute the information contained in the report to 
subscribers shall be determined in accordance with the following 
schedule:

                                              Number of Subscribers
----------------------------------------------------------------------------------------------------------------
                                       1-500          501-999       1,000-4999      5,000-9,999       10,000+
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A. Market Summary Statistics:
    More often than once a month            $250            $350            $450            $550            $750
    Once a month, quarter, or                125             175             225             275             375
     year.......................
B. Reserved
C. Nasdaq Issues Summary
 Statistics:
    More often than once a month             500             600             700             800           1,000
    Once a month, quarter, or                250             300             350             400             500
     year.......................
    Annual set of aged reports             3,000           3,000           3,000           3,000           3,000
     previously distributed more
     often than once a month....
D. Intra-Day Quote and Intra-Day
 Time and Sales Data:
    For a security and/or a                  200             300             400             500             700
     market participant for a
     day........................
    For all market participants            1,000           1,500           2,500           3,500           5,000
     for a day or for all
     securities for a day.......
----------------------------------------------------------------------------------------------------------------


[[Page 51629]]

    (c) No change.
    (d) No change.
* * * * *

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
    NASDAQ proposes to offer a volume discount for the bulk purchase of 
an existing report within the Nasdaq Issues Summary Statistics category 
of Historical Research and Administrative Reports under subsection C of 
NASDAQ Rule 7022(b). The pricing schedule for Nasdaq Issues Summary 
Statistics reports currently includes only short interest 
information.\3\ The fee schedule for NASDAQ Issues Summary Statistics 
is currently divided into two tiers, one for reports distributed once 
per month or less, and a second for reports distributed more than once 
monthly.
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    \3\ In 2013, NASDAQ moved the Daily List and Fundamental Data 
formerly covered by this rule into new NASDAQ Rule 7022(d). See 
Exchange Act Release No. 68636 (Jan. 11, 2013). In the future, this 
category may include other information that properly falls within 
the category of Nasdaq Issues Summary Statistics.
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    NASDAQ is proposing to add a third tier of fees for Nasdaq Issues 
Summary Statistics reports for the purchase and distribution of a full 
year of the twice-monthly report of short interest on NASDAQ provided 
that the individual reports are each aged a full year. NASDAQ has been 
requested to offer a volume discount for the distribution of short 
interest reports aged more than one year that Distributors can make 
available to Subscribers in annual sets of twenty-four reports. The 
existing reports will be delivered in annual sets via an acceptable 
medium where each of the individual reports is sent simultaneously.
    NASDAQ has determined to assess a fee of $3,000 for access to the 
annual sets of aged reports of short interest on NASDAQ. This is less 
than a Distributor would pay to distribute twenty-four short interest 
reports that will constitute each annual set of reports because the 
data in the annual set will be aged at least one year and therefore 
will be less valuable to investors. In addition, unlike the existing 
fee tiers, the volume discount will not be indexed to the number of 
subscribers receiving the annual set of reports; all Distributors will 
pay the $3,000 fee regardless of the number of recipients to which they 
distribute it.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\4\ in general, and with Section 
6(b)(4) of the Act,\5\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members and issuers and other persons using any facility or system 
which NASDAQ operates or controls. The volume discount is a pricing 
convention that exists in NASDAQ's current fee schedule and the fee 
schedules of multiple other exchanges. The volume discount currently 
exists for transaction fees, market access fees, and market data fees 
where members and other market participants pay lower unit costs as 
they purchase increasing amounts of a given product or service. The 
volume discount is predicated upon the well-accepted principle that the 
purchase and sale of a product becomes more efficient and less costly 
per unit as volumes purchased and sold increase.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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    NASDAQ believes that the proposed fee is also consistent with 
Section 6(b)(5) of the Act,\6\ 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. The Exchange believes that 
the proposed volume discount enhances transparency and facilitates 
transactions through the dissemination of increased volumes of 
transaction-based data.
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    \6\ 15 U.S.C. 78f(b)(5).
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    Finally, NASDAQ believes that the proposed fee is also consistent 
with Section 11A(c)(1)(D) of the Act,\7\ in that it provides for a fee 
that is not unreasonably discriminatory in nature. The proposed volume 
discount is available equally to all members and other market 
participants that may seek short interest reports in annual sets. 
Additionally, while the $3,000 flat fee is substantially less than a 
distributor would pay to distribute the twenty-four individual short 
interest reports, NASDAQ believes that this volume discount is fair and 
reasonable and not unreasonably discriminatory because the data 
contained in the annual sets will be aged at least one year and 
therefore of less value to investors than are current reports. For the 
same reasons, NASDAQ believes it is fair and equitable and not 
unreasonably discriminatory that the volume discount will not be 
indexed to the number of subscribers receiving the aggregated report; 
all distributors will pay the $3,000 fee regardless of the number of 
recipients to which they distribute it.
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    \7\ 15 U.S.C. 78k-1(c)(1)(D).
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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 an undue burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act, as amended. As described 
above, the volume discount already exists in many forms, and it has not 
[sic] found to impose any burden on competition. In this case, NASDAQ 
does not believe the volume discount will impose any burden on 
competition. With respect to distributors, the proposal would reduce 
fees for all market participants that purchase and distribute the 
reports, therefore each participant should be positioned equally with 
respect to such distribution.
    With respect to competitors or NASDAQ, the proposed volume discount 
does not impose any burden on competition. NASDAQ competitors that 
distribute similar data are equally-well positioned to offer a volume 
discount for similar data. To the extent that NASDAQ's proposed volume 
discount prompts competitors to offer volume discounts, this effect is 
pro-competitive and beneficial to investors.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were either solicited or received.

[[Page 51630]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing change has become effective pursuant to Section 
19(b)(3)(A) of the Act,\8\ and paragraph (f) \9\ of Rule 19b-4, 
thereunder. 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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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 rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2014-086 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-2014-086. 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 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-2014-
086, and should be submitted on or before September 19, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-20559 Filed 8-28-14; 8:45 am]
BILLING CODE 8011-01-P


