Notice2024-30161
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Transaction Pricing Schedule of Supplemental Credits at Equity 7, Section 118(a)
Primary source
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Published
December 19, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 244 (Thursday, December 19, 2024)</title>
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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103902-103904]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30161]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101906; File No. SR-NASDAQ-2024-080]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange's Transaction Pricing Schedule of Supplemental
Credits at Equity 7, Section 118(a)
December 13, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on December 2, 2024, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``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 Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's schedule of credits,
at Equity 7, Section 118(a). Specifically, the Exchange proposes to
amend the Supplemental Credit to member for displayed quotes/orders
(other than Supplemental Orders or Designated Retail Orders) that
provide liquidity.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rules">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules</a>, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.
[[Page 103903]]
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
The purpose of the proposed rule change is to amend the Exchange's
schedule of credits, at Equity 7, Section 118(a). Specifically, the
Exchange proposes to amend the Supplemental Credit to member for
displayed quotes/orders (other than Supplemental Orders or Designated
Retail Orders) that provide liquidity. Currently, members that execute
a combined volume of at least 5 million shares average daily volume
(ADV) through midpoint orders and M-ELO orders during the month are
eligible to receive $0.00015 credit per share executed. The rule also
states that this credit cannot be combined with M-ELO Supplemental
Credit A.
The proposed amendment seeks to further clarify that M-ELO
Supplemental Credit B cannot be combined with QMM Tier 2 Program
$0.0029 discounted remove fee as defined in Equity 7, Section 114(e).
The revised language would state that ``$0.00015 (may not be combined
with M-ELO Supplemental Credit A or with the QMM Tier 2 Program $0.0029
discounted remove fee set forth in Section 114(e)).
This proposed change will apply to Tapes A, B, and C. The Exchange
periodically reviews its fee and credit structures to ensure clarity
and alignment with its overall pricing strategy. The purpose of the
proposed amendment is to avoid confusion regarding whether members can
receive M-ELO Supplemental Credit B and M-ELO Supplemental Credit A or
QMM Tier 2 Program $0.0029 discounted remove fee set forth in Section
114(e). The Exchange has never intended for participants to receive
both the M-ELO Supplemental Credit B and either M-ELO Supplemental
Credit A or QMM Tier 2 Program $0.0029 discounted remove fee
simultaneously. Instead, members have been required to choose the
credit for which they qualify, based on the applicable conditions
outlined in the fee schedule.
The proposed rule change does not alter the current operation of
the fee program but instead codifies the Exchange's existing
interpretation, ensuring clarity and consistency in the application of
its rules. This codification is part of the Exchange's commitment to
maintaining a transparent and straightforward fee schedule and reducing
potential misunderstandings among market participants. Further, the
amendment aims to eliminate potential overlap between the M-ELO
Supplemental Credit B and the QMM Tier 2 Program $0.0029 discounted
remove fee. With this clarification, the Exchange intends to maintain a
fair and balanced credit program. The amendment is also designed to
ensure that the Exchange's credit programs remain competitive and
equitable while avoiding unnecessary complexity in its application.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\3\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\4\ 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, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4) and (5).
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The proposed amendment furthers these objectives by clarifying the
application of the M-ELO Supplemental Credit B. The amendment avoids
confusion regarding whether members can receive both the M-ELO
Supplemental Credit B and either M-ELO Supplemental Credit A or QMM
Tier 2 Program $0.0029 discounted remove fee set forth in Section
114(e). This clarification ensures that the credit program operates
fairly and promotes equitable principles that does not unfairly
discriminate against market participants.
Additionally, the Exchange notes that it has not interpreted its
fee schedule to permit members to combine the credits mentioned above.
This proposed amendment simply codifies this existing interpretation,
ensuring that the fee schedule accurately reflects the Exchange's
intent. By codifying this interpretation, the Exchange reduces the risk
of misinterpretation and provides clear guidance to market
participants, supporting just and equitable allocation of reasonable
dues, fees and other charges among members and issuers and other
persons using any facility, and is not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed amendment will not impose
any burden on competition that's unnecessary or inappropriate in
furtherance of the purposes of the Act. The amendment is administrative
in nature and does not alter the substantive requirements for earning
the M-ELO Supplemental Credit B. As a result, the change ensures
consistency and fairness in the application of the Exchange's credit
program and does not disadvantage any specific group of market
participants.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\5\
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
[[Page 103904]]
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#d4a6a1b8b1f9b7bbb9b9b1baa0a794a7b1b7fab3bba2"><span class="__cf_email__" data-cfemail="285a5d444d054b4745454d465c5b685b4d4b064f475e">[email protected]</span></a>. Please include
file number SR-NASDAQ-2024-080 on the subject line.
Paper Comments
<bullet> 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-2024-080. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NASDAQ-2024-080 and should
be submitted on or before January 9, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-30161 Filed 12-18-24; 8:45 am]
BILLING CODE 8011-01-P
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