[Federal Register Volume 82, Number 88 (Tuesday, May 9, 2017)]
[Notices]
[Pages 21585-21587]
[FR Doc No: 2017-09314]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80580; File No. SR-BatsBZX-2017-25]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 11.22, Data Products, To Adopt a New Market Data Product Known as
the ETF Implied Liquidity Feed

May 3, 2017.
    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 April 28, 2017, Bats BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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
Exchange has designated this proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6)(iii) thereunder,\4\ which renders it effective upon
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 11.22, Data Products,
to adopt a new market data product known as the ETF Implied Liquidity
feed.
    The text of the proposed rule change is available at the Exchange's
Web site at www.bats.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 parts of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 11.22, Data Products, to adopt
a new market data product known as the ETF Implied Liquidity feed. The
ETF Implied Liquidity feed would be an optional data feed that would
provide the Exchange's proprietary calculation of the implied liquidity
and the aggregate best bid and offer (``BBO'') of all displayed orders
on the Exchange and its affiliated exchanges \5\ for all standard, non-
leveraged U.S. equity Exchange Traded Funds (``ETFs'') traded on the
System.\6\ An ETF's implied liquidity disseminated via the proposed
feed would consist of the ETF's implied BBO (including the implied
size) calculated via a proprietary methodology based on the national
best bid and offer (``NBBO''), the number of shares of securities
underlying one creation unit of the ETF, and the estimated cash
included in one creation unit of the ETF. The Exchange will disseminate
the aggregate BBO through the ETF Implied Liquidity feed no earlier
than it provides its BBO to the processors under the CTA Plan or the
Nasdaq/UTP Plan.
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    \5\ The Exchange's affiliates are Bats EDGA Exchange, Inc.,
(``EDGA''), Bats EDGX Exchange, Inc. (``EDGX''), and Bats BYX
Exchange, Inc. (``BYX'') (``collectively, the ``Bats Exchanges'').
    \6\ The securities underlying each of the U.S. equity ETFs
included in the proposed feed must be considered NMS Securities as
defined under Rule 600(b)(46) of Regulation NMS. 17 CFR
242.600(b)(46).
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    The ETF Implied Liquidity feed would provide market participants
with an additional price discovery tool that would assist in trading of
standard, non-leveraged U.S. equity ETFs and their underlying
securities. The Exchange's calculation of the ETF's implied liquidity
via the ETF Implied Liquidity feed would provide a more granular
measure of an ETF's intraday indicative value (``IIV'', also commonly
referred to as intraday net asset value (``iNAV'')) by incorporating
the NBBO and its size along with other data elements described above.
This enhanced measure of implied liquidity can provide market
participants with a more complete picture of the liquidity available
for an ETF based on its underlying securities.
    As ETFs trade similar to stocks throughout the day, the IIV of the
ETF can fluctuate with the prices of the underlying securities
intraday. For this reason, ETF issuers are required to publish an IIV
for the ETF during the trading day which provides a snapshot estimate
of the value of the ETF based on the last sale for the underlying
securities. The IIV is generally calculated and disseminated
periodically intraday by summing the last sale of all of the ETF's
underlying securities divided by the number of shares outstanding.\7\
This current calculation of IIV is designed to provide investors with a
reasonable estimate of the value of the ETF. However, this calculation
of IIV provides a single value that does not include size or account
for an ETF trading at a premium or discount to the IIV. For one,
current IIV calculations do not consider the liquidity of the ETF or
underlying securities so traded prices may differ from the theoretical
snapshot due to bid/ask spreads and/or market impact. Although
arbitrage activity between the ETF and its underlying securities tends
to keep the traded price very close to IIV, there may still be
variations. Therefore, the Exchange proposes to calculate on a real-
time basis a more granular and enhanced measure of IIV by incorporating
the following data points for each ETF into its proprietary calculation
of the ETF's implied liquidity: the NBBO (including size), the number
of shares of securities underlying one creation unit of the ETF, and
the estimated cash included in one creation unit of the ETF.\8\ The
Exchange's calculation of the ETF's implied liquidity would provide
additional data than what is currently provided via the ETF's IIV
calculation of a single value, such as the implied best bid, the
implied best offer and their implied sizes.
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    \7\ See Understanding Net Asset Value, available at http://www.etf.com/etf-education-center/21025-understanding-net-asset-value.html (last visited February 21, 2017).
    \8\ The Exchange intends to include a disclaimer as part of the
proposed ETF Implied Liquidity feed that would alert subscribers
that the Exchange's calculation of the ETF's implied liquidity may
differ from the fund's calculation of IIV or iNAV and does not
account for potential creation or redemption fees associated with
trading in the ETF's underlying basket of securities. In addition,
the Exchange's calculation of the ETF's implied liquidity is an
enhanced version of an ETF's NAV that is calculated and disseminated
intra-day and is not intended to be confused with the ETF's end of
day calculation of the ETF's NAV which consists of a single value.
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    The Exchange believes providing the implied bid and the implied
offer based on the ETF's underlying basket of securities can provide
investors with even more insight into the true value of the ETF than
the current calculation of IIV (or iNAV). The Exchange also notes that
many market participants today calculate and provide to their customers

IIV for ETFs in which they make markets. The proposed ETF Implied
Liquidity feed could serve to assist these market participants in
developing and verifying their own IIV calculations provided to
customers.
    The Exchange intends to file a separate rule change with the
Commission proposing fees to be charged for the ETF Implied Liquidity
feed. The Exchange anticipates offering the ETF Implied Liquidity feed
on the date of effectiveness of the rule filing to establish those
fees.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
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 to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. This proposal is in keeping with
those principles in that it promotes increased transparency through the
dissemination of the ETF Implied Liquidity feed. The Exchange also
believes this proposal is consistent with Section 6(b)(5) of the Act
because it protects investors and the public interest and promotes just
and equitable principles of trade by providing investors with an
alternative for receiving market data as requested by market data
vendors and purchasers that expressed an interest in improved, more
granular calculations of an ETF's implied liquidity as provided by the
proposed feed.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \11\ in that it supports (i)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(ii) the availability of information with respect to quotations for and
transactions in securities to brokers, dealers, and investors. The ETF
Implied Liquidity feed would be accessed and subscribed to on a
voluntary basis, in that neither the Exchange nor market data
distributors are required by any rule or regulation to make this data
available. Accordingly, distributors and subscribers can discontinue
their use at any time and for any reason. Furthermore, the proposed
rule change is consistent with Rule 603 of Regulation NMS,\12\ which
provides that any national securities exchange that distributes
information with respect to quotations for or transactions in an NMS
stock do so on terms that are not unreasonably discriminatory.
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    \11\ 15 U.S.C. 78k-1.
    \12\ See 17 CFR 242.603.
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    In adopting Regulation NMS, the Commission granted self-regulatory
organizations and broker-dealers increased authority and flexibility to
offer new and unique market data to consumers of such data. It was
believed that this authority would expand the amount of data available
to users and consumers of such data and also spur innovation and
competition for the provision of market data. The Exchange believes
that the data products proposed herein are precisely the sort of market
data products that the Commission envisioned when it adopted Regulation
NMS. The Commission concluded that Regulation NMS--by lessening
regulation of the market in proprietary data--would itself further the
Act's goals of facilitating efficiency and competition:

    [E]fficiency is promoted when broker-dealers who do not need the
data beyond the prices, sizes, market center identifications of the
NBBO and consolidated last sale information are not required to
receive (and pay for) such data. The Commission also believes that
efficiency is promoted when broker-dealers may choose to receive
(and pay for) additional market data based on their own internal
analysis of the need for such data.\13\
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    \13\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04) (``Regulation
NMS Adopting Release'').

By removing ``unnecessary regulatory restrictions'' on the ability of
exchanges to sell their own data, Regulation NMS advanced the goals of
the Act and the principles reflected in its legislative history.
    In addition, the proposed ETF Implied Liquidity feed promotes just
and equitable principles of trade by providing market participants with
an additional price discovery tool that would assist in trading of
standard, non-leveraged U.S. equity ETFs and their underlying
securities. As stated above, the proposed feed would provide investors
with even more insight into the true value of the ETF than the current
calculations of IIV (or iNAV) by incorporating the NBBO and its size
along with other data elements described above. The proposed
calculation of an ETF's implied liquidity via the proposed ETF Implied
Liquidity feed can provide market participants with a more complete
picture of the liquidity available for an ETF based on its underlying
securities. The proposed ETF Implied Liquidity feed could also serve to
assist market participants in their own IIV (or iNAV) calculations that
they provide to customers for ETFs in which they make markets.
Therefore, the Exchange believes the proposed feed promotes just and
equitable principles of trade, removes impediments to and perfects the
mechanism of a free and open market and a national market system.
    Lastly, the ETF Implied Liquidity feed removes impediments to and
perfects the mechanism of a free and open market and a national market
system by providing investors with alternative market data and
competing with similar market data products currently offered by the
Nasdaq Stock Market LLC (``Nasdaq'').\14\ The provision of new options
for investors to receive market data was a primary goal of the market
data amendments adopted by Regulation NMS.\15\
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    \14\ See Nasdaq's Global Index Data Service (``GIDS'') available
at http://business.nasdaq.com/intel/indexes/index-data/index.html#!/tcm:5044-12151 (providing on a real-time basis intraday portfolio
values, daily valuation information, such as NAV per Share,
estimated cash per Share, estimated cash per creation unit, total
cash per creation unit and total shares outstanding of the fund and
ETF directory messages designed to provide the symbols of the ETF
valuations). See footnote 28 of Securities Exchange Act Release No.
77714 (April 26, 2016), 81 FR 26281 (May 2, 2016) (describing
Nasdaq's GIDS within the order approving SR-Nasdaq-2016-028). See
also footnote 29 of Securities Exchange Act Release No. 78592
(August 16, 2016), 81 FR 56729 (August 22, 2016) (describing
Nasdaq's GIDS within the order approving SR-Nasdaq-2016-061). See,
e.g., the NYSE Arca, Inc.'s (``NYSE Arca'') EOD ETF Report available
at http://www.nyxdata.com/Data-Products/NYSE-Arca-EOD-ETF-Report
(providing information such as the ETF's closing trades and quotes
at different key points during the trading day, as well referential
information such as shares outstanding, the primary market, and
NAV).
    \15\ See Regulation NMS Adopting Release, supra note 13.
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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.\16\ The

Exchange believes that the proposal will promote competition by
enabling the Exchange to offer a market data product similar to that
currently offered by Nasdaq and NYSE Arca.\17\ Thus, the Exchange
believes this proposed rule change is necessary to permit fair
competition among national securities exchanges.
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    \16\ The Bats One Feed is a data feed that disseminates, on a
real-time basis, the aggregate BBO for securities traded on each of
the Bats Exchanges. The Bats One Feed also contains the individual
last sale information for the Bats Exchanges (collectively with the
aggregate BBO, the ``Bats One Summary Feed''). See Exchange Rule
11.22(j). See also Securities Exchange Act Release No. 73918
(December 23, 2014), 79 FR 78920 (December 31, 2014) (File Nos. SR-
EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030)
(Notice of Amendment No. 2 and Order Granting Accelerated Approval
to Proposed Rule Changes, as Modified by Amendments Nos. 1 and 2, to
Establish a New Market Data Product called the Bats One Feed)
(``Bats One Approval Order''). The Exchange would provide the
aggregate BBO disseminated via the Bats One Summary Feed as part of
the ETF Implied Liquidity feed. The Exchange utilizes the following
data feeds to create the Bats One Summary Feed's aggregated BBO,
each of which are available to vendors: EDGX Depth, EDGA Depth, BYX
PITCH Feed, and BZX PITCH Feed. Rather than these depth-of-book
feeds, the Exchange notes that a vendor seeking to build a competing
product to the proposed ETF Implied Liquidity feed could simply
utilize the top-of-book data feeds from each of the Bats Exchange's
to create an aggregated BBO. These top-of-book feeds are EDGA Top,
EDGX Top, BYX Top and BZX Top. The Exchange represents that a
competing vendor could obtain these top-of-book data feeds from each
of the Bats Exchanges on the same latency basis as the system that
performs the aggregation and consolidation of the Bats One Summary
Feed. See Bats One Approval Order. While the proposed ETF Implied
Liquidity feed does not separately provide the ETF's NBBO, the
number of shares of securities underlying one creation unit of the
ETF, or the estimated cash included in one creation unit of the ETF,
a vendor could obtain this information from the securities
information processors and other publicly available sources to
perform its own calculation of an ETF's implied liquidity to include
as part of a competing product. Therefore, a vendor could create a
product to compete with the proposed ETF Implied Liquidity feed on
the same terms as the Exchange. With regard to cost, as stated
above, the Exchange will file a separate rule filing with the
Commission to establish fees for the ETF Implied Liquidity feed that
would be designed to ensure that vendors could compete with the
Exchange by creating a similar product.
    \17\ See supra note 14.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, 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 \18\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\19\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given 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.
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4.
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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: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) 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_ADDRESS>Please
include File Number SR-BatsBZX-2017-25 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BatsBZX-2017-25. 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-BatsBZX-2017-25 and should
be submitted on or before May 30, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09314 Filed 5-8-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 21 (Thursday, January 31, 2013)]
[Notices]
[Pages 6842-6845]
[FR Doc No: 2013-02073]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68735; File No. SR-NASDAQ-2012-119]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Approving a Proposed Rule Change To Establish a New Optional Wireless
Connectivity for Colocated Clients

January 25, 2013.
    On October 10, 2012, The NASDAQ Stock Market LLC (``Exchange'' or
``NASDAQ'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to establish a new optional wireless connectivity
for colocated clients. The proposed rule change was published for
comment in the Federal Register on October 29, 2012.\3\ The Commission
received one comment on the proposal and a response from NASDAQ.\4\ On
December 12, 2012, the Commission extended the time period in which to
either approve NASDAQ's proposal, disapprove NASDAQ's proposal, or
institute proceedings to determine whether to approve or disapprove
NASDAQ's proposal, to January 25, 2013.\5\ This order approves the
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 68085 (October 23,
2012), 77 FR 65596 (``Notice'').
    \4\ See comment from Anthony C.J. Nuland, Attorney at Law,
representing Quincy Data LLC, dated January 17, 2013 (``Quincy Data
Letter''); see also letter from Jeff Davis, Vice President and
Deputy General Counsel, NASDAQ, to Elizabeth M. Murphy, Secretary,
Commission, dated January 24, 2013 (``NASDAQ Letter'').
    \5\ See Securities Exchange Act Release No. 68416 (December 12,
2012), 77 FR 75229 (December 19, 2012).
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II. Description of the Proposal

    Under the proposal, NASDAQ would establish fees for new optional
means for clients to receive third party market data and NASDAQ
TotalView ITCH market data. NASDAQ would offer wireless connectivity
for colocated clients in NASDAQ's Carteret data center to receive
Direct Edge, BATS, NYSE, and NYSE ARCA multi-cast market data feeds. It
also would offer remote multi-cast ITCH Wave Ports for clients
colocated at other third party data centers, through which NASDAQ
TotalView ITCH market data will be distributed after delivery to those
data centers via wireless network. As noted by the Exchange, wireless
connectivity involves the beaming of signals through the air between
towers that are within sight of one another. Over the last year,
wireless technology has been introduced in the financial services
industry, according to the Exchange.
    Additionally, the proposed rule change would amend NASDAQ Rule 7034
to establish fees for the delivery of third party market data to market
center clients via a wireless network using millimeter wave or
microwave technology. It also would amend NASDAQ Rule 7015 to establish
fees for remote multi-cast ITCH Wave Ports for clients colocated at
other third-party data centers, through which NASDAQ TotalView ITCH
market data will be distributed after delivery to those data centers
via wireless network.

Wireless Connectivity in Carteret

    Under the proposed rule change, NASDAQ would utilize a network
vendor to supply wireless connectivity from its Carteret data center to
the Secaucus Equinix data center (NY4) used by Direct Edge and other
exchanges; the Newark data center used by NYSE as a SFTI Network Point
of Presence; and the Weehawken Savvis data center (NJ2) used by BATS.
The vendor would install, test and maintain the necessary communication
equipment for this wireless network between the data centers.
    Clients who choose this optional service would have their NASDAQ
cross connect handoffs (1G, 10G, or 40G) enabled to receive the chosen
raw, multicast market data for Direct Edge, BATS, and/or NYSE. NASDAQ
OMX would continue to act as re-distributor of these third party market
data feeds, capturing the data at the originating data centers and
transporting the data to the Carteret data center. In the Notice, the
Exchange represented that it is offering these particular equity feeds
because they are the feeds requested by clients. There is limited
bandwidth available on the wireless connection, and the Exchange has
opted to offer those that are in most demand to start. Additional feeds
may be added based on overall client demand and bandwidth availability.
    The wireless connectivity would be an optional offering, an
alternative to fiber optic network connectivity, and according to the
Exchange, would provide lower latency. It would not provide a new
market data product, but merely an alternative means of connectivity.
The Exchange has represented that NASDAQ's wireless connectivity
offering, in conjunction with NASDAQ's equidistant cross connect
handoffs (1G, 10G, or 40G), would ensure that all clients colocated
within Carteret and electing to use this wireless connectivity offering
would receive the chosen market data at the same low latency,
equalizing any variances that might otherwise result from differences
in the location of client cabinets within the facility.
    To obtain wireless connectivity, clients would be charged a $2,500
installation fee (a non-recurring charge) and a monthly recurring
charge (MRC) that will vary depending upon the feed. The MRC for the
NYSE multi-cast equities data feed, which includes NYSE ArcaBook
Highspeed and NYSE OpenBook (Aggregated or Ultra), will be $10,000; the
MRC for BATS Multicast PITCH, which includes BZX and BYX, will be
$7,500; and the MRC for Direct Edge Depth of Book multi-cast feed,
which includes EDGA and EDGX, will be $7,500. According to the
Exchange, the rates are higher for the NYSE feeds because the two feeds
are larger and take up more bandwidth than the BATS and Direct Edge
feeds.
    Clients would place orders for the wireless connectivity via the
CoLo Console \6\ and would be subject to a one-year minimum lock-in
period. In the Notice, the Exchange represented that

the lock-in feature, which is common practice for colocation offerings,
would ensure that the Exchange can recoup the substantial investment
required to establish the wireless system. As an incentive to clients,
NASDAQ would waive the first month's MRC. Clients would continue to be
charged by NYSE, BATS and Direct Edge for the market data received, and
NASDAQ would continue to be charged the redistribution fees by the
other exchanges, as occurs today. No changes in these charges would
occur as a result of this proposed offering.
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    \6\ The ``CoLo Console'' is a web-based ordering tool NASDAQ
offers to enable members to place colocation orders.
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    In the Notice, the Exchange represented that NASDAQ OMX would
perform substantial network testing prior to offering the service for a
fee to members. After this ``beta'' testing period, upon initial roll-
out of the service, clients would be offered the service for a fee, and
on a rolling basis, the Exchange would enable new clients to receive
the feed(s) for a minimum of 30 days before incurring any monthly
recurring fees. The wireless network would continue to be closely
monitored and the client informed of any issues. Similar to receiving
market data over fiber optic networks, the wireless network can
encounter delays or outages due to equipment issues, as noted by the
Exchange in the Notice. As wireless networks may be affected by severe
weather events, clients would be expected to have redundant methods to
receive this market data and would be asked by the Exchange to attest
to having alternate methods or establishing an alternate method in the
near future when they order this service from the Exchange.
    This new data feed delivery option would be available to all
clients of the data center, and is in response to industry demand, as
well as to changes in the technology for distributing market data.
Clients opting not to pay for the wireless connectivity would still be
able to receive market data via fiber optics and standard
telecommunications connections, as they do currently, and under the
same fees. According to the Exchange, receipt of trade data via
wireless technology is completely optional. In addition, clients can
choose to receive market data via other third-party vendors (Extranets
or Telecommunication vendors) via fiber optic networks or wireless
networks. They can receive the wireless service, according to the
Exchange, by contracting with a wireless service provider to install
the required dishes on towers near the data centers and paying the
service provider to maintain the service.

Remote Multi-Cast ITCH (MITCH) Wave Ports

    Pursuant to the proposed rule change, NASDAQ also would offer
remote multi-cast ITCH Wave Ports for clients colocated at other third-
party data centers. NASDAQ TotalView ITCH market data would be
delivered to NASDAQ-owned cabinets at those data centers via a wireless
network. Clients would have the option of cross-connecting to the MITCH
Wave Ports in those data centers to receive the raw NASDAQ multi-cast
data feed, TotalView ITCH. An installation charge for the remote port
would be, at each of the locations, $2,500 for installation, and $7,500
as a monthly recurring fee. According to the Exchange, this offering,
which is entirely optional, would enable delivery of NASDAQ TotalView
ITCH to the third-party data centers at the same low latency.\7\
Clients opting to pay for the remote MITCH Wave Ports would continue to
be fee liable for the applicable market data fees as described in
NASDAQ Rule 7026, NASDAQ Rule 7019 and NASDAQ Rule 7023.
---------------------------------------------------------------------------

    \7\ In the Notice, NASDAQ noted that it cannot preclude minor
latency variances in delivery of NASDAQ TotalView in the third-party
data centers to individual clients because it does not control the
cross-connects in those centers; however, the microwave connectivity
would provide the same latency to all MITCH Wave Ports clients and
according to the Exchange, offers an improvement in latency over
fiber optic network connectivity.
---------------------------------------------------------------------------

    In the Notice, the Exchange represented that the proposed fees are
based on the cost to NASDAQ of installing and maintaining the wireless
connectivity and on the value provided to the customer, which receives
low latency delivery of data feeds. According to the Exchange, the
costs associated with the wireless connectivity system are
incrementally higher than fiber optics-based solutions due to the
expense of the wireless equipment, cost of installation, and testing.
Furthermore, the Exchange represented that the fees allow NASDAQ to
make a profit, and reflect the premium received by the clients in terms
of lower latency over the fiber optics option. In the Notice, the
Exchange also stated that the fees for colocation services generally,
including those proposed for wireless connectivity, are constrained by
the robust competition for order flow among exchanges and non-exchange
markets, and colocation exists to advance that competition.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \8\
and the rules and regulations thereunder applicable to a national
securities exchange. Additionally, in approving this proposed rule
change, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation, as discussed in more
detail below.\9\ The Commission finds that the proposed rule change is
consistent with Section 6(b)(4),\10\ which provides for the equitable
allocation of reasonable dues, fees and other charges among members,
and Section 6(b)(5) of the Act,\11\ which requires, among other things,
that the Exchange's rules be 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 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; and are not designed to permit unfair discrimination
between customers, issuers, brokers, or dealers. In addition, the
Commission finds that the proposed rule change is consistent with
Section 6(b)(8) of the Act,\12\ which requires that the rules of the
exchange not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal to provide
this additional connectivity option is consistent with the requirement
of Section 6(b)(5) of the Act. The Commission believes that the
proposal is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers because the Exchange makes
wireless connectivity available to clients of the data center on an
equal basis. The Exchange represented that it will perform substantial
network testing prior to offering the service for a fee to members and
that after the testing period the network will be closely monitored and
maintained by the vendor and clients will be informed of any issues. As
wireless networks may be affected by severe weather events, the
Exchange notes that clients will be expected to

have redundant methods to receive this market data and will be asked to
attest to having alternate methods or establishing an alternate method
in the near future when they order this service from the Exchange.
    The Commission also finds that consistent with Section 6(b)(8) of
the Act the proposed rule change does not impose a burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act. The Quincy Data Letter argues that NASDAQ's proposal is
``an anti-competitive arrangement'' because ``Nasdaq would be the only
wireless provider permitted to install microwave dishes on the
rooftop'' of its data center.\13\ The Quincy Data Letter states that
this rooftop access is a ``critical ingredient'' for an alternative
wireless network to be competitive.\14\ Ultimately, argues the Quincy
Data Letter, by preventing other wireless networks from accessing the
roof of the data center, NASDAQ reduces competition with its own
wireless network and is able to charge fees for its service that ``are
not grounded in competition.'' \15\ This arrangement would result in
``vertical tying,'' according to the Quincy Data Letter, as customers
desiring the lowest latency for data would have to obtain the service
from NASDAQ.\16\
---------------------------------------------------------------------------

    \13\ See Quincy Data Letter, supra note 4, at 2. The Quincy Data
Letter also made certain comments outside of the scope of the
proposed rule change. Quincy argues that NASDAQ can ``control, delay
or limit'' the vendors that can distribute NASDAQ data through (1)
the market data license application process; (2) the co-location
application and approval process; (3) the authorized telecom
provider and application and approval process; and (4) by
controlling the initial dissemination and re-dissemination of NASDAQ
data from the trading engine and distribution of other market data
within the NASDAQ data center. Id., at 3. The Commission notes, as
recognized in the NASDAQ Letter, that these comments are not germane
to the proposed rule change, which deals solely with NASDAQ's
creation of an alternative means of data transmission. Additionally,
the processes the Quincy Data Letter notes here are subject to the
relevant standards of the Act.
    \14\ See Id., at 2.
    \15\ See Id., at 3.
    \16\ See Id.
---------------------------------------------------------------------------

    NASDAQ makes a variety of representations in the Notice and in the
NASDAQ Letter that respond to the concerns raised by the Quincy Data
Letter. The NASDAQ Letter responds by noting that its proposed rule
change ``does not unduly constrain competition, nor impede a free and
open market and national market system.'' \17\ First, NASDAQ notes that
it does not have exclusive control of the roof rights at its data
center. Verizon, the lessor of the facility, retains rights to the roof
that would permit it to approve other vendors to place equipment on the
roof of the facility for the provision of wireless network services.
---------------------------------------------------------------------------

    \17\ See NASDAQ Letter, supra note 4, at 2.
---------------------------------------------------------------------------

    Second, in the Notice, NASDAQ states that it has chosen not to sell
roof rights to individual clients as it ``would quickly result in a
lack of physical space on the data center roof to accommodate all
clients fairly and equally.'' \18\ The NASDAQ Letter states further
that ``practical issues--space constraints and interference between
dishes that are placed too closely together--impose limits to the
number of networks that can occupy the Carteret rooftop'' and that it
is ``technologically impossible for the rooftop to support equipment
from every provider that NASDAQ anticipates would seek rooftop
access.'' \19\
---------------------------------------------------------------------------

    \18\ See Notice, supra note 3, at 65597.
    \19\ See Id., at 5.
---------------------------------------------------------------------------

    Third, even if NASDAQ were to operate the only wireless network on
the data center roof, the Exchange notes that its wiraeless network
service would still be subject to competition from (1) other wireless
network providers and (2) fiber optic networks. NASDAQ responds that
roof access is not a prerequisite for creating a competitive network,
noting that a variety of factors are at play in determining the speed
of a wireless network. Ultimately, NASDAQ avers that competitive
wireless networks can be established on buildings across the street
from the data center providing ``the same or similar data, at the same
or similar speed, at the same or similar cost.'' \20\ The NASDAQ Letter
also notes that fiber optic networks are also ``effective competitors
for wireless data,'' highlighting that (1) 17 market data vendors
currently offer connectivity to NASDAQ, and (2) fiber optic networks
may be more attractive to some clients as they are ``more resilient
than wireless networks, which can be more susceptible to weather
affects.'' \21\ For these reasons, the Commission does not believe that
the proposed rule change imposes a burden on competition not necessary
or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \20\ See Id., at 2.
    \21\ See Id., at 4.
---------------------------------------------------------------------------

    The Commission also believes that the proposed fees for wireless
connectivity to NASDAQ are consistent with Section 6(b)(4) of the Act.
The Commission believes that the proposed fees are reasonable and
equitably allocated. All Exchange members that voluntarily select this
service option will be charged the same amount for the same services.
The Exchange noted that they are based on the Exchange's costs to cover
hardware, installation, testing and connection, as well expenses
involved in maintaining and managing the enhanced connection.\22\ The
Commission notes that, according to the Exchange, the proposed fees
would allow the Exchange to recoup these costs and make a profit, while
providing customers with additional data connectivity options for
receiving data from certain third parties and NASDAQ. With respect to
the fee differentials for receiving NYSE data feeds versus BATS and
Direct Edge data feeds, the Exchange noted that the fees are higher for
the NYSE feeds because the two feeds are larger and take up more
bandwidth than the BATS and Direct Edge feeds.\23\
---------------------------------------------------------------------------

    \22\ See Notice, supra note 3, at 65599.
    \23\ See Id., at 65597.
---------------------------------------------------------------------------

    The Quincy Data Letter argues that NASDAQ is able to charge fees
for the wireless distribution of market data that are ``not grounded in
competition,'' suggesting that these fees may not be consistent with
the Exchange Act.\24\ As described above, NASDAQ has provided a variety
of examples of how it believes its wireless network service could be
subject to competition. The Exchange also stated that the fees for
colocation services generally, including those proposed for wireless
connectivity, are constrained by the robust competition for order flow
among exchanges and non-exchange markets, and colocation exists to
advance that competition.\25\ For these reasons, the Commission
believes that the proposed fees for wireless connectivity are
consistent with Section 6(b)(4) of the Act.
---------------------------------------------------------------------------

    \24\ See Quincy Data Letter, supra note 4, at 3.
    \25\ See Notice, supra note 3, at 65599.
---------------------------------------------------------------------------

    The Commission also believes that the proposed wireless
connectivity fees are consistent with Section 6(b)(5) of the Act. All
market participants that voluntarily select this service option will be
charged the same amount for the same services. Under the proposal, all
colocated clients would have the option to select wireless
connectivity, and there would be no differentiation among customers
with regard to the fees charged for the service.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\26\ that the proposed rule change (SR-NASDAQ-2012-119) be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(b)(2).

---------------------------------------------------------------------------

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
---------------------------------------------------------------------------

    \27\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-02073 Filed 1-30-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 124 (Thursday, July 1, 2021)]
[Notices]
[Pages 35142-35143]
[FR Doc No: 2021-14006]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 34319]

Notice of Applications for Deregistration Under Section 8(f) of
the Investment Company Act of 1940

June 25, 2021.
    The following is a notice of applications for deregistration under
section 8(f) of the Investment Company Act of 1940 for the month of
June 2021. A copy of each application may be obtained via the
Commission's website by searching for the file number, or for an
applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling<PHONE_NUMBER>. An order granting each
application will be issued unless the SEC orders a hearing. Interested
persons may request a hearing on any application by emailing the SEC's
Secretary at<EMAIL_ADDRESS>and serving the relevant
applicant with a copy of the request by email, if an email address is
listed for the relevant applicant below, or personally or by mail, if a
physical address is listed for the relevant applicant below. Hearing
requests should be received by the SEC by 5:30 p.m. on July 20, 2021,
and should be accompanied by proof of service on applicants, in the
form of an affidavit or, for lawyers, a certificate of

service. Pursuant to Rule 0-5 under the Act, hearing requests should
state the nature of the writer's interest, any facts bearing upon the
desirability of a hearing on the matter, the reason for the request,
and the issues contested. Persons who wish to be notified of a hearing
may request notification by writing to the Commission's Secretary at
<EMAIL_ADDRESS>
ADDRESSES: The Commission<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT:  Shawn Davis, Assistant Director, at
(202) 551-6413 or Chief Counsel's Office at<PHONE_NUMBER>; SEC,
Division of Investment Management, Chief Counsel's Office, 100 F Street
NE, Washington, DC 20549-8010.

Bluerock Institutional High Income Credit Fund LLC. [File No. 811-
23495]

    Summary: Applicant, a closed-end investment company, seeks an order
declaring that it has ceased to be an investment company. On February
4, 2021, applicant made liquidating distributions to its shareholders
based on net asset value. Expenses of approximately $20,000 incurred in
connection with the reorganization were paid by the applicant's
investment advisor.
    Filing Dates: The application was filed on March 4, 2021 and
amended on June 11, 2021.
    Applicant's Address<EMAIL_ADDRESS>
IVA Fiduciary Trust [File No. 811-22211]

    Summary: Applicant seeks an order declaring that it has ceased to
be an investment company. On April 19, 2021, applicant made a
liquidating distribution to its shareholders based on net asset value.
Expenses of $2,383,799 incurred in connection with the liquidation were
paid by the applicant and the applicant's investment advisor.
    Filing Date: The application was filed on May 24, 2021.
    Applicant's Address<EMAIL_ADDRESS>
Transamerica Separate Account R3 [File No. 811-22407]

    Summary: Applicant, a unit investment trust, seeks an order
declaring that it has ceased to be an investment company. Applicant has
never made a public offering of its securities and does not propose to
make a public offering or engage in business of any kind.
    Filing Dates: The application was filed on March 1, 2021 and
amended on June 4, 2021.
    Applicant's Address<EMAIL_ADDRESS>
USCA Fund Trust [811-23164]

    Summary: Applicant seeks an order declaring that it has ceased to
be an investment company. The applicant has transferred its assets to
Trust for Advised Portfolios, and on December 18, 2020 made a final
distribution to its shareholders based on net asset value. Expenses of
$120,683.58 incurred in connection with the reorganization were paid by
the applicant's investment adviser and the acquiring fund's investment
adviser.
    Filing Dates: The application was filed on March 1, 2021 and
amended on May 18, 2021, and June 17, 2021.
    Applicant's Address<EMAIL_ADDRESS>
Van Kampen Municipal Opportunity High Income Fund [811-22308]

    Summary: Applicant, a closed-end investment company, seeks an order
declaring that it has ceased to be an investment company. Applicant has
never made a public offering of its securities and does not propose to
make a public offering or engage in business of any kind.
    Filing Dates: The application was filed on November 23, 2020 and
amended on March 25, 2021.
    Applicant's Address<EMAIL_ADDRESS>
    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14006 Filed 6-30-21; 8:45 am]
BILLING CODE 8011-01-P


RECEIPT OF DELIVERY DATE: 03/ 14/ 2006 Receipt of Delivery TO: The Honorable J. Dennis Hastert Speaker of the House of Representatives The Capitol, H 209 Washington, D. C. 20515 FROM: U. S. Environmental Protection Agency 1200 Pennsylvania Ave., NW 1806A Washington, DC 20460 TITLE( S) OF DOCUMENTS:

1. Approval and Promulgation of Implementation Plans; Georgia: Approval of Revisions to the State Implementation Plan [ FRL # 8045 4, Region 4] Final Rule 2. Approval and Promulgation of Air Quality Implementation Plans; Arkansas Update to Materials Incorporated by Reference [ FRL # 8022 1, Region 6] Final Rule; Notice of Administrative Change 3. Approval and Promulgation of Air Quality Implementation Plans; Maine; Architectural and Industrial Maintenance ( AIM) Coatings Regulations [ FRL # 8038 1, Region 1] Final Rule 4. Approval and Promulgation of Air Quality Implementation Plans; Texas; Permits by Rule [ FRL # 8045 5, Region 6] Final Rule 5. Clean Air Act Approval and Promulgation of Air Quality Implementation Plan Revision for Colorado; Long Term Strategy of State Implementation Plan for Class I Visibility Protection; Withdrawal of Direct Final Rule [ FRL # 8044 4, Region 8] Withdrawal of Direct Final Rule 6. Modified cry3A Protein and the Generic Material for its Production in Corn; Extension of a Temporary Exemption from the Requirement of a Tolerance [ FRL # 7766 6, OPPTS] Final Rule 7. Testing of Certain High Production Volume Chemicals [ FRL # 7335 2, OPPTS] Final Rule 8. Underground Storage Tank Program: Approved State Program for Pennsylvania [ FRL # 8011 3, Region 3] Immediate Final Rule RECEIVED BY: ______________________________ Date:________________ RECEIPT OF DELIVERY DATE: 03/ 14/ 2006 Receipt of Delivery TO: The Honorable Richard B. Cheney President of the Senate The Capitol, S 212 Washington, DC 20510 FROM: U. S. Environmental Protection Agency 1200 Pennsylvania Ave., NW 1806A Washington, DC 20460 TITLE( S) OF DOCUMENTS:

1. Approval and Promulgation of Implementation Plans; Georgia: Approval of Revisions to the State Implementation Plan [ FRL # 8045 4, Region 4]

2. Approval and Promulgation of Air Quality Implementation Plans; Arkansas Update to Materials Incorporated by Reference [ FRL # 8022 1, Region 6]

3. Approval and Promulgation of Air Quality Implementation Plans; Maine; Architectural and Industrial Maintenance ( AIM) Coatings Regulations [ FRL # 8038 1, Region 1]

4. Approval and Promulgation of Air Quality Implementation Plans; Texas; Permits by Rule [ FRL # 8045 5, Region 6]

5. Clean Air Act Approval and Promulgation of Air Quality Implementation Plan Revision for Colorado; Long Term Strategy of State Implementation Plan for Class I Visibility Protection; Withdrawal of Direct Final Rule [ FRL # 8044 4, Region 8]

6. Modified cry3A Protein and the Generic Material for its Production in Corn; Extension of a Temporary Exemption from the Requirement of a Tolerance [ FRL # 7766 6, OPPTS]

7. Testing of Certain High Production Volume Chemicals [ FRL # 7335 2, OPPTS]

8. Underground Storage Tank Program: Approved State Program for Pennsylvania [ FRL # 8011 3, Region 3]

RECEIVED BY: ____________________________ Date:________________ RECEIPT OF DELIVERY DATE: 03/ 14/ 2006 Receipt of Delivery TO: Mr. Anthony Gamboa General Counsel General Accounting Office Room 7175 441 G Street, NW Washington, DC 20548 FROM: U. S. Environmental Protection Agency 1200 Pennsylvania Ave., NW 1806A Washington, DC 20460 TITLE( S) OF DOCUMENTS:

1. Approval and Promulgation of Implementation Plans; Georgia: Approval of Revisions to the State Implementation Plan [ FRL # 8045 4, Region 4] 2. Approval and Promulgation of Air Quality Implementation Plans; Arkansas Update to Materials Incorporated by Reference [ FRL # 8022 1, Region 6] 3. Approval and Promulgation of Air Quality Implementation Plans; Maine; Architectural and Industrial Maintenance ( AIM) Coatings Regulations [ FRL # 8038 1, Region 1] 4. Approval and Promulgation of Air Quality Implementation Plans; Texas; Permits by Rule [ FRL # 8045 5, Region 6] 5. Clean Air Act Approval and Promulgation of Air Quality Implementation Plan Revision for Colorado; Long Term Strategy of State Implementation Plan for Class I Visibility Protection; Withdrawal of Direct Final Rule [ FRL # 8044 4, Region 8] 6. Modified cry3A Protein and the Generic Material for its Production in Corn; Extension of a Temporary Exemption from the Requirement of a Tolerance [ FRL # 7766 6, OPPTS] 7. Testing of Certain High Production Volume Chemicals [ FRL # 7335 2, OPPTS] 8. Underground Storage Tank Program: Approved State Program for Pennsylvania [ FRL # 8011 3, Region 3]

RECEIVED BY: ___________________________ Date:________________