Self-Regulatory Organizations; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change by the National Association of Securities Dealers, Inc. to Modify the Pricing for Non-NASD Members Using Nasdaq's Brut Facility, 19543-19545 [E5-1746]
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Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of Nasdaq. 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–NASD–2004–033 and
should be submitted on or before May
4, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1743 Filed 4–12–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51498; File No. SR-NASD–
2005–038]
Self-Regulatory Organizations; Notice
of Filing and Order Granting
Accelerated Approval of Proposed
Rule Change by the National
Association of Securities Dealers, Inc.
to Modify the Pricing for Non-NASD
Members Using Nasdaq’s Brut Facility
April 6, 2005.
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 March 28,
2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), 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 Nasdaq. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons, and at
the same time is granting accelerated
approval of the proposed rule change.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify the
pricing for non-NASD members using
Nasdaq’s Brut Facility. Nasdaq requests
approval to implement the proposed
rule change retroactively as of April 1,
2005. The text of the proposed rule
change is available on the NASD’s Web
site (https://www.nasd.com), at the
NASD’s Office of the Secretary, 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,
Nasdaq 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 III below. Nasdaq has prepared
summaries, set forth in sections A, B
and C below, of the most significant
aspects of such statements.
19543
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose On March 28, 2005, Nasdaq
filed with the Commission SR-NASD–
2005–035, modifying the fee structure
applicable to NASD members using the
Nasdaq Market Center (‘‘NMC’’) or
Nasdaq’s Brut Facility (‘‘Brut’’). This
filing seeks to impose, effective April 1,
2005, that exact same fee structure on
non-NASD members using Brut. As set
forth in SR-NASD–2005–035, fees in
both the NMC and Brut are based upon
multiple volume-based usage tiers that
take into account the volume of a
market participant across both systems.
Currently, market participants must
provide more than 500,000 shares of
average daily liquidity each month to
reduce their per-share execution costs or
routing charges. In order to receive a
higher liquidity provider credit, users
must provide in excess of 1,000,000
shares of average daily liquidity each
month in Nasdaq and/or Brut.
Just like the fees applicable to NASD
members in SR-NASD–2005–035, for
non-NASD members, Nasdaq proposes
in this filing to: 1 Increase to just over
2,000,000 shares the amount of average
daily liquidity needed to be provided by
a market participant to have its pershare execution or routing costs
reduced; and 2 increase to 2,000,000
shares the number of shares of average
daily liquidity needed to be provided
each month before a market participant
becomes eligible for an increased
liquidity provider credit. The resulting
modified fee structure is summarized
below:
Charge to member entering order:
Average daily shares of liquidity provided through the Nasdaq Market
Center and/or Nasdaq’s Brut Facility by the member during the
month:.
Greater than 10 million .............................................................................
Greater than 2,000,000 but less than or equal to 10,000,000 ................
2,000,000 or less ......................................................................................
Average daily shares of liquidity provided through the Nasdaq Market
Center and/or Nasdaq’s Brut Facility by the member during the
month:.
Greater than 20 million .............................................................................
Greater than 2,000,000 but less than or equal to 20,000,000 ................
Less than or equal to 2,000,000 ..............................................................
15 17
CFR 200.30–3(a)(12).
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18:37 Apr 12, 2005
1 15
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$0.0027
trades
$0.0028
trades
$0.0030
trades
$0.0025 per share executed (but no more than $100 per trade for
trades in securities executed at $1.00 or less per share).
$0.0022 per share executed (but no more than $88 per trade for trades
in securities executed at $1.00 or less per share).
$0.0020 per share executed (but no more than $80 per trade for trades
in securities executed at $1.00 or less per share).
U.S.C. 78s(b)(1).
Frm 00132
Fmt 4703
per share executed (but no more than $108 per trade for
in securities executed at $1.00 or less per share).
per share executed (but no more than $112 per trade for
in securities executed at $1.00 or less per share).
per share executed (but no more than $120 per trade for
in securities executed at $1.00 or less per share).
2 17
Sfmt 4703
E:\FR\FM\13APN1.SGM
CFR 240.19b-4.
13APN1
19544
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
Routed orders
Any order entered by a member that is routed outside of both the Nasdaq Market Center and Nasdaq’s Brut
Facility and that does not attempt to execute in Nasdaq’s Brut Facility prior to routing.
Any other order entered by a member that is routed outside of both the Nasdaq Market Center and Nasdaq’s
Brut Facility.
Average daily shares of liquidity provided through the Nasdaq Market Center and/or Nasdaq’s Brut Facility by
the member during the month and average daily shares accessed through and/or routed from the Nasdaq
Market Center and/or Nasdaq’s Brut Facility by the member during the month (excluding orders routed outside of both the Nasdaq Market Center and Nasdaq’s Brut Facility that do not attempt to execute in
Nasdaq’s Brut Facility prior to routing):
Greater than 20 million shares of liquidity provided and greater than 50 million shares accessed or routed .....
Greater than 10 million but less than or equal to 20 million shares of liquidity provided and any amount
accessed or routed, OR greater than 20 million shares of liquidity provided and 50 million or fewer shares
accessed and/or routed.
Greater than 2,000,000 but less than or equal to 10,000,000 shares of liquidity provided and any amount
accessed and/or routed.
Less than or equal to 2,000,000 shares of liquidity provided and any amount accessed and/or routed ............
Nasdaq believes that the proposed
changes to its fee structure are
reasonable, and draw an appropriate
balance between the value-added
benefits provided to the users by the
Nasdaq Market Center and Brut systems
and the fees imposed for such services.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 15A of the Act,3 in
general, and with Section 15A(b)(5) of
the Act,4 in particular, in that the
proposed rule change 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 the NASD
operates or controls.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Nasdaq states that written comments
were neither solicited nor received.
III. 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:
3 15
4 15
U.S.C. 78o3.
U.S.C. 78o3(b)(5).
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2005–038 on the
subject line.
$0.004 per share executed.
$0.0025 per share executed
$0.0027 per share executed.
$0.0028 per share executed.
$0.0030 per share executed.
should be submitted on or before May
4, 2005.
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
Paper Comments
applicable to a self-regulatory
• Send paper comments in triplicate
organization.5 Specifically, the
to Jonathan G. Katz, Secretary,
Commission believes the proposed rule
Securities and Exchange Commission,
change is consistent with Section
450 Fifth Street, NW., Washington, DC
15A(b)(5) of the Act,6 which requires
20549–0609.
that the rules of the self-regulatory
All submissions should refer to File
organization provide for the equitable
Number SR–NASD–2005–038. This file
allocation of reasonable dues, fees, and
number should be included on the
other charges among members and
subject line if e-mail is used. To help the issuers and other persons using any
Commission process and review your
facilities or system which it operates or
comments more efficiently, please use
controls.
only one method. The Commission will
The Commission notes that this
post all comments on the Commission’s proposal, which permits the retroactive
Internet Web site (https://www.sec.gov/
application of the pricing and rebate
rules/sro.shtml). Copies of the
schedule for non-NASD members that
submission, all subsequent
covers activity both on the NMC and
amendments, all written statements
Brut and is effective as of April 1, 2005,
with respect to the proposed rule
would permit the schedule for nonchange that are filed with the
NASD members to mirror the schedule
Commission, and all written
applicable to NASD members that was
communications relating to the
effective as of April 1, 2005 pursuant to
proposed rule change between the
SR–NASD–2005–035. The Commission
Commission and any person, other than believes that the fees are scaled
those that may be withheld from the
according to objective criteria applied
public in accordance with the
across-the-board to all categories of
provisions of 5 U.S.C. 552, will be
users, i.e., the pricing and rebate
available for inspection and copying in
schedule will now apply equally to nonthe Commission’s Public Reference
members as well as members, and is
Room. Copies of the filing also will be
based on the volume of business they
available for inspection and copying at
conduct on the NMC and Brut.
the principal office of the NASD. All
The Commission finds good cause for
comments received will be posted
approving the proposed rule change
without change; the Commission does
prior to the 30th day of the date of
not edit personal identifying
publication of notice of filing thereof in
information from submissions. You
should submit only information that
5 The Commission has considered the proposed
you wish to make available publicly. All rule’s impact on efficiency, competition and capital
submissions should refer to File
formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78o–3(b)(5).
Number SR–NASD–2005–038 and
PO 00000
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E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
the Federal Register. The Commission
notes that the proposed pricing and
rebate schedule for non-NASD members
are identical to those in SR–NASD–
2005–035, which implemented a new
pricing and rebate schedule for NASD
members and which became effective as
of April 1, 2005. The Commission notes
that this change will promote
consistency in Nasdaq’s fee schedule by
applying the same pricing and rebate
schedule with the same date of
effectiveness for both NASD members
and non-NASD members. Therefore, the
Commission finds that there is good
cause, consistent with Section 19(b)(2)
of the Act,7 to approve the proposed
rule change on an accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (File No. SR–
NASD–2005–038) be approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1746 Filed 4–12–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51499; File No. SR–NASD–
2005–035]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
National Association of Securities
Dealers, Inc. to Modify Pricing for
NASD Members Using the Nasdaq
Market Center and Nasdaq’s Brut
Facility
April 6, 2005.
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 March 28,
2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by Nasdaq. Nasdaq
has designated this proposal as one
establishing or changing a due, fee or
other charge imposed by the selfregulatory organization under Section
19(b)(3)(A)(ii) 3 of the Act and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify the
pricing for NASD members using the
Nasdaq Market Center and Nasdaq’s
Brut Facility. Nasdaq states that it will
implement the proposed rule change on
April 1, 2005. The text of the proposed
rule change is available on the NASD’s
Web site (https://www.nasd.com), at the
NASD’s Office of the Secretary, 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,
Nasdaq 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. Nasdaq has prepared
summaries, set forth in sections A, B,
19545
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 Nasdaq Market Center and Brut
Facility combined fee structure is based
upon multiple volume-based usage tiers
that take into account the volume of a
market participant across both systems.
Currently, market participants must
provide more than 500,000 shares of
average daily liquidity each month to
reduce their per-share execution costs or
routing charges. In order to receive a
higher liquidity provider credit, users
must provide in excess of 1,000,000
shares of average daily liquidity each
month in Nasdaq and/or Brut.
Nasdaq stated that, in this filing, it
proposes to: (1) Increase to just over
2,000,000 shares the amount of average
daily liquidity needed to be provided by
a market participant to have its pershare execution or routing costs
reduced; and (2) increase to 2,000,000
shares the number of shares of average
daily liquidity needed to be provided
each month before a market participant
becomes eligible for an increased
liquidity provider credit. The resulting
modified fee structure 5 is summarized
below:
Charge to member entering order:
Average daily shares of liquidity provided through the Nasdaq Market
Center and/or Nasdaq’s Brut Facility by the member during the
month:
Greater than 10 million .............................................................................
Greater than 2,000,000 but less than or equal to 10,000,000 ................
2,000,000 or less ......................................................................................
7 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15
18:37 Apr 12, 2005
per share executed (but no more than $108 per trade for
in securities executed at $1.00 or less per share).
per share executed (but no more than $112 per trade for
in securities executed at $1.00 or less per share).
per share executed (but no more than $120 per trade for
in securities executed at $1.00 or less per share).
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 The fees currently in Rule 7010(i) are applicable
to non-members that use Nasdaq’s Brut Facility.
Nasdaq will seek to apply the same fee schedule
8 15
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$0.0027
trades
$0.0028
trades
$0.0030
trades
4 17
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Frm 00134
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Sfmt 4703
proposed here for non-members that use Brut.
Accordingly, Nasdaq is submitting a separate filing
(SR–NASD–2005–038) to make the proposed rule
changes contained in this filing applicable to nonmembers.
E:\FR\FM\13APN1.SGM
13APN1
]]>Agencies
[Federal Register Volume 70, Number 70 (Wednesday, April 13, 2005)]
[Notices]
[Pages 19543-19545]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1746]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51498; File No. SR-NASD-2005-038]
Self-Regulatory Organizations; Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change by the National
Association of Securities Dealers, Inc. to Modify the Pricing for Non-
NASD Members Using Nasdaq's Brut Facility
April 6, 2005.
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
March 28, 2005, the National Association of Securities Dealers, Inc.
(``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), 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 Nasdaq. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons, and at the same time is granting accelerated
approval of the proposed rule change.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify the pricing for non-NASD members using
Nasdaq's Brut Facility. Nasdaq requests approval to implement the
proposed rule change retroactively as of April 1, 2005. The text of the
proposed rule change is available on the NASD's Web site (https://
www.nasd.com), at the NASD's Office of the Secretary, 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, Nasdaq 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 III below. Nasdaq 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 March 28, 2005, Nasdaq filed with the Commission SR-NASD-
2005-035, modifying the fee structure applicable to NASD members using
the Nasdaq Market Center (``NMC'') or Nasdaq's Brut Facility
(``Brut''). This filing seeks to impose, effective April 1, 2005, that
exact same fee structure on non-NASD members using Brut. As set forth
in SR-NASD-2005-035, fees in both the NMC and Brut are based upon
multiple volume-based usage tiers that take into account the volume of
a market participant across both systems. Currently, market
participants must provide more than 500,000 shares of average daily
liquidity each month to reduce their per-share execution costs or
routing charges. In order to receive a higher liquidity provider
credit, users must provide in excess of 1,000,000 shares of average
daily liquidity each month in Nasdaq and/or Brut.
Just like the fees applicable to NASD members in SR-NASD-2005-035,
for non-NASD members, Nasdaq proposes in this filing to: \1\ Increase
to just over 2,000,000 shares the amount of average daily liquidity
needed to be provided by a market participant to have its per-share
execution or routing costs reduced; and \2\ increase to 2,000,000
shares the number of shares of average daily liquidity needed to be
provided each month before a market participant becomes eligible for an
increased liquidity provider credit. The resulting modified fee
structure is summarized below:
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
----------------------------------------------------------------------------------------------------------------
Charge to member entering order:
----------------------------------------------------------------------------------------------------------------
Average daily shares of liquidity provided through the .......................................................
Nasdaq Market Center and/or Nasdaq's Brut Facility by
the member during the month:.
Greater than 10 million................................ $0.0027 per share executed (but no more than $108 per
trade for trades in securities executed at $1.00 or
less per share).
Greater than 2,000,000 but less than or equal to $0.0028 per share executed (but no more than $112 per
10,000,000. trade for trades in securities executed at $1.00 or
less per share).
2,000,000 or less...................................... $0.0030 per share executed (but no more than $120 per
trade for trades in securities executed at $1.00 or
less per share).
Average daily shares of liquidity provided through the .......................................................
Nasdaq Market Center and/or Nasdaq's Brut Facility by
the member during the month:.
Greater than 20 million................................ $0.0025 per share executed (but no more than $100 per
trade for trades in securities executed at $1.00 or
less per share).
Greater than 2,000,000 but less than or equal to $0.0022 per share executed (but no more than $88 per
20,000,000. trade for trades in securities executed at $1.00 or
less per share).
Less than or equal to 2,000,000........................ $0.0020 per share executed (but no more than $80 per
trade for trades in securities executed at $1.00 or
less per share).
----------------------------------------------------------------------------------------------------------------
[[Page 19544]]
----------------------------------------------------------------------------------------------------------------
Routed orders
----------------------------------------------------------------------------------------------------------------
Any order entered by a member that is routed outside of $0.004 per share executed.
both the Nasdaq Market Center and Nasdaq's Brut
Facility and that does not attempt to execute in
Nasdaq's Brut Facility prior to routing.
Any other order entered by a member that is routed .......................................................
outside of both the Nasdaq Market Center and Nasdaq's
Brut Facility.
Average daily shares of liquidity provided through the
Nasdaq Market Center and/or Nasdaq's Brut Facility by
the member during the month and average daily shares
accessed through and/or routed from the Nasdaq Market
Center and/or Nasdaq's Brut Facility by the member
during the month (excluding orders routed outside of
both the Nasdaq Market Center and Nasdaq's Brut
Facility that do not attempt to execute in Nasdaq's
Brut Facility prior to routing):
Greater than 20 million shares of liquidity provided $0.0025 per share executed
and greater than 50 million shares accessed or routed.
Greater than 10 million but less than or equal to 20 $0.0027 per share executed.
million shares of liquidity provided and any amount
accessed or routed, OR greater than 20 million shares
of liquidity provided and 50 million or fewer shares
accessed and/or routed.
Greater than 2,000,000 but less than or equal to $0.0028 per share executed.
10,000,000 shares of liquidity provided and any amount
accessed and/or routed.
Less than or equal to 2,000,000 shares of liquidity $0.0030 per share executed.
provided and any amount accessed and/or routed.
----------------------------------------------------------------------------------------------------------------
Nasdaq believes that the proposed changes to its fee structure are
reasonable, and draw an appropriate balance between the value-added
benefits provided to the users by the Nasdaq Market Center and Brut
systems and the fees imposed for such services.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\3\ in general, and with
Section 15A(b)(5) of the Act,\4\ in particular, in that the proposed
rule change 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 the NASD operates or controls.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78o3.
\4\ 15 U.S.C. 78o3(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq 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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Nasdaq states that written comments were neither solicited nor
received.
III. 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2005-038 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-NASD-2005-038. This
file number should be included on the subject line if e-mail 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 (https://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 inspection
and copying in the Commission's Public Reference Room. Copies of the
filing also will be available for inspection and copying at the
principal office of the NASD. 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-NASD-2005-038 and should be submitted on or before May
4, 2005.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a self-regulatory organization.\5\
Specifically, the Commission believes the proposed rule change is
consistent with Section 15A(b)(5) of the Act,\6\ which requires that
the rules of the self-regulatory organization provide for the equitable
allocation of reasonable dues, fees, and other charges among members
and issuers and other persons using any facilities or system which it
operates or controls.
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\5\ The Commission has considered the proposed rule's impact on
efficiency, competition and capital formation. 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78o-3(b)(5).
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The Commission notes that this proposal, which permits the
retroactive application of the pricing and rebate schedule for non-NASD
members that covers activity both on the NMC and Brut and is effective
as of April 1, 2005, would permit the schedule for non-NASD members to
mirror the schedule applicable to NASD members that was effective as of
April 1, 2005 pursuant to SR-NASD-2005-035. The Commission believes
that the fees are scaled according to objective criteria applied
across-the-board to all categories of users, i.e., the pricing and
rebate schedule will now apply equally to non-members as well as
members, and is based on the volume of business they conduct on the NMC
and Brut.
The Commission finds good cause for approving the proposed rule
change prior to the 30th day of the date of publication of notice of
filing thereof in
[[Page 19545]]
the Federal Register. The Commission notes that the proposed pricing
and rebate schedule for non-NASD members are identical to those in SR-
NASD-2005-035, which implemented a new pricing and rebate schedule for
NASD members and which became effective as of April 1, 2005. The
Commission notes that this change will promote consistency in Nasdaq's
fee schedule by applying the same pricing and rebate schedule with the
same date of effectiveness for both NASD members and non-NASD members.
Therefore, the Commission finds that there is good cause, consistent
with Section 19(b)(2) of the Act,\7\ to approve the proposed rule
change on an accelerated basis.
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\7\ 15 U.S.C. 78s(b)(2).
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V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (File No. SR-NASD-2005-038) be
approved on an accelerated basis.
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\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1746 Filed 4-12-05; 8:45 am]
BILLING CODE 8010-01-P
