Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Approving Proposed Rule Change To Create an Enterprise License Fee for the TotalView Entitlement, 53700-53701 [E5-4927]
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53700
Federal Register / Vol. 70, No. 174 / Friday, September 9, 2005 / Notices
to consolidate the execution and
reporting of a wider range of trades, and
will extend the combined benefits of
give-up relationships and anonymous
trading to reporting of matched trades in
exchange-listed securities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change, as amended, will
result in any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act,
as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change, as
amended, has become effective upon
filing pursuant to Section 19(b)(3)(A)(iii)
of the Act 15 and Rule 19b–4(f)(5) 16
thereunder in that it effects a change in
an existing order execution system of
Nasdaq that does not significantly affect
the protection of investors or the public
interest, does not impose any significant
burden on competition, and it does not
have the effect of limiting the access to
or availability of the system. At any time
within 60 days of the filing of the
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.17
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
15 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(5).
17 The effective date of the original proposed rule
is August 26, 2005. The effective date of
Amendment No. 1 is August 31, 2005. For purposes
of calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
August 31, 2005, the date on which Nasdaq
submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
16 17
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15:19 Sep 08, 2005
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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–2005–102 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–NASD–2005–102. 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 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–2005–102 and
should be submitted on or before
September 30, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Jonathan G. Katz,
Secretary.
[FR Doc. E5–4926 Filed 9–8–05; 8:45 am]
BILLING CODE 8010–01–P
18 17
PO 00000
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52377; File No. SR–NASD–
2005–051]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving
Proposed Rule Change To Create an
Enterprise License Fee for the
TotalView Entitlement
September 2, 2005.
I. Introduction
On April 13, 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’’) a
proposed rule change pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 to create an
enterprise license fee for the TotalView
entitlement. On June 3, 2005, Nasdaq
amended the proposed rule change. The
proposed rule change, as modified by
Amendment No. 1, was published for
comment in the Federal Register on
June 28, 2005.3 The Commission
received one comment letter on the
proposal.4 On August 16, 2005, Nasdaq
filed a response to the comment letter.5
This order approves the proposed rule
change, as amended.
II. Description of the Proposal
Nasdaq proposes to establish a
program whereby a broker-dealer
distributor could obtain an enterprise
license for the distribution of the
TotalView market data entitlement for a
fixed cost of either $25,000 per month
for non-professional subscribers or of
$100,000 per month for broker-dealer
distributors that serve both nonprofessional and professional
subscribers. This enterprise license
pricing structure would mirror the
pricing structure already established for
individual professional and nonprofessional subscribers and is an
alternative way to pay for the data.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 51869
(June 17, 2005), 70 FR 37144.
4 See letter to Jonathan G. Katz, Secretary,
Securities and Exchange Commission, from
Christopher Gilkerson, Chair, SIA Technology &
Regulation Committee, and Andrew Wels, Chair,
SIA Market Data Subcommittee, dated July 19, 2005
(‘‘SIA Letter’’).
5 See letter to Jonathan G. Katz, Secretary,
Securities and Exchange Commission, from Edward
S. Knight, Executive Vice President and General
Counsel, Nasdaq, dated August 16, 2005 (‘‘Nasdaq
Response Letter’’).
2 17
E:\FR\FM\09SEN1.SGM
09SEN1
Federal Register / Vol. 70, No. 174 / Friday, September 9, 2005 / Notices
This program would only be available
to broker-dealers registered under the
Act, and would cover all TotalView
usage fees with respect to both internal
usage and re-distribution to customers
with whom the firm has a brokerage
relationship.6 Non-broker-dealer
vendors and application service
providers would not be eligible for the
enterprise license, as such firms,
according to Nasdaq, typically pass
through the cost of market data user fees
to their customers. This would enable
firms to incorporate TotalView data into
the software applications they make
available to their institutional and retail
customers, without providing them the
opportunity to re-distribute TotalView
data in competition with pure vendors.
The enterprise license would cover
fees for TotalView data received directly
from Nasdaq as well as data received
from third-party vendors (e.g.,
Bloomberg, Reuters). Upon signing up
for the program, the relevant firm would
be entitled to inform any third-party
market data vendor it utilizes (through
a Nasdaq-provided form) that, going
forward, any TotalView data usage by
the broker-dealer may be reported to
Nasdaq on a non-billable basis.
III. Summary of Comments
The Commission received one
comment letter on the proposed rule
change. The commenter expressed its
support for enterprise license fees and
also for the fact that the product,
TotalView, ‘‘does not come with data
integration strings attached.’’ However,
the commenter stated its concerns that
NQDS data would be linked with the
TotalView data and that the cost of Brut
data integrated in the TotalView
entitlement is too high.7 In response,
Nasdaq stated that the link between
NQDS data and TotalView data was
added to ensure compliance with the fee
schedule established by the Operating
Committee of the UTP Plan, which plan
has been approved by the Commission.
Nasdaq further noted that the cost of
Brut data integrated in the TotalView
entitlement has already been approved
by the Commission.8
IV. Discussion
The Commission has carefully
reviewed the proposed rule change, the
SIA Letter and the Nasdaq Response
Letter and finds that the proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
6 Distributors who utilize the enterprise license
would still be liable for the applicable distributor
fees.
7 See SIA Letter.
8 See Nasdaq Response Letter.
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15:19 Sep 08, 2005
Jkt 205001
a national securities association,9 the
requirements of Section 15A of the
Act,10 in general, and Section 15A(b)(5)
of the Act,11 in particular, which
requires that the NASD’s rules provide
for an equitable allocation of reasonable
charges among members for the use of
any facility or system which the NASD
operates or controls.
The Commission believes that the
program whereby a broker-dealer
distributor could obtain an enterprise
license for the distribution of the
TotalView market data entitlement for a
fixed cost of either $25,000 per month
for non-professional subscribers or of
$100,000 per month for broker-dealer
distributors that serve both nonprofessional and professional
subscribers satisfies the statutory
standards outlined above and will
provide increased flexibility to market
data vendors, which may result in
increased access to market data.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–NASD–2005–
051), as amended, be, and it hereby is,
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–4927 Filed 9–8–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52362; File No. SR–NYSE–
2005–57]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Automating
the Execution of Elected Stop Orders
and CAP–DI Orders and Converted
CAP–DI Orders
August 30, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on August
10, 2005, the New York Stock Exchange,
9 In approving the proposed rule change, the
Commission has considered its impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
10 15 U.S.C. 78o–3.
11 15 U.S.C. 78o–3(b)(5).
12 15 U.S.C. 78s(b)(2).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
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53701
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) 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 the Exchange.
The proposed rule change has been filed
by the Exchange as effecting a change in
an existing order-entry or trading system
pursuant to Section 19(b)(3)(A)(iii) of
the Act,3 and Rule 19b–4(f)(5) 4
thereunder, 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
The Exchange proposes to systematize
certain functions that are currently
performed manually regarding the
execution of elected stop orders and
CAP–DI (convert and paritydestabilizing, immediate or cancel)
orders and converted CAP–DI orders.
The Exchange represents that the rules
regarding the election and execution of
CAP–DI and stop orders and conversion
and execution of CAP–DI orders remain
the same.
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 Exchange is filing this proposed
amendment to systematize certain
functions that are currently performed
manually regarding the execution of
elected stop orders and CAP–DI orders
and converted CAP–DI orders.
The rules regarding the election and
execution of CAP–DI and stop orders
and the conversion and execution of
CAP–DI orders remain the same.
3 15
4 17
E:\FR\FM\09SEN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(5).
09SEN1
Agencies
[Federal Register Volume 70, Number 174 (Friday, September 9, 2005)]
[Notices]
[Pages 53700-53701]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4927]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52377; File No. SR-NASD-2005-051]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Approving Proposed Rule Change To Create an
Enterprise License Fee for the TotalView Entitlement
September 2, 2005.
I. Introduction
On April 13, 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'') a proposed rule change pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ to create an enterprise license fee for the TotalView
entitlement. On June 3, 2005, Nasdaq amended the proposed rule change.
The proposed rule change, as modified by Amendment No. 1, was published
for comment in the Federal Register on June 28, 2005.\3\ The Commission
received one comment letter on the proposal.\4\ On August 16, 2005,
Nasdaq filed a response to the comment letter.\5\ This order approves
the proposed rule change, as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 51869 (June 17,
2005), 70 FR 37144.
\4\ See letter to Jonathan G. Katz, Secretary, Securities and
Exchange Commission, from Christopher Gilkerson, Chair, SIA
Technology & Regulation Committee, and Andrew Wels, Chair, SIA
Market Data Subcommittee, dated July 19, 2005 (``SIA Letter'').
\5\ See letter to Jonathan G. Katz, Secretary, Securities and
Exchange Commission, from Edward S. Knight, Executive Vice President
and General Counsel, Nasdaq, dated August 16, 2005 (``Nasdaq
Response Letter'').
---------------------------------------------------------------------------
II. Description of the Proposal
Nasdaq proposes to establish a program whereby a broker-dealer
distributor could obtain an enterprise license for the distribution of
the TotalView market data entitlement for a fixed cost of either
$25,000 per month for non-professional subscribers or of $100,000 per
month for broker-dealer distributors that serve both non-professional
and professional subscribers. This enterprise license pricing structure
would mirror the pricing structure already established for individual
professional and non-professional subscribers and is an alternative way
to pay for the data.
[[Page 53701]]
This program would only be available to broker-dealers registered
under the Act, and would cover all TotalView usage fees with respect to
both internal usage and re-distribution to customers with whom the firm
has a brokerage relationship.\6\ Non-broker-dealer vendors and
application service providers would not be eligible for the enterprise
license, as such firms, according to Nasdaq, typically pass through the
cost of market data user fees to their customers. This would enable
firms to incorporate TotalView data into the software applications they
make available to their institutional and retail customers, without
providing them the opportunity to re-distribute TotalView data in
competition with pure vendors.
---------------------------------------------------------------------------
\6\ Distributors who utilize the enterprise license would still
be liable for the applicable distributor fees.
---------------------------------------------------------------------------
The enterprise license would cover fees for TotalView data received
directly from Nasdaq as well as data received from third-party vendors
(e.g., Bloomberg, Reuters). Upon signing up for the program, the
relevant firm would be entitled to inform any third-party market data
vendor it utilizes (through a Nasdaq-provided form) that, going
forward, any TotalView data usage by the broker-dealer may be reported
to Nasdaq on a non-billable basis.
III. Summary of Comments
The Commission received one comment letter on the proposed rule
change. The commenter expressed its support for enterprise license fees
and also for the fact that the product, TotalView, ``does not come with
data integration strings attached.'' However, the commenter stated its
concerns that NQDS data would be linked with the TotalView data and
that the cost of Brut data integrated in the TotalView entitlement is
too high.\7\ In response, Nasdaq stated that the link between NQDS data
and TotalView data was added to ensure compliance with the fee schedule
established by the Operating Committee of the UTP Plan, which plan has
been approved by the Commission. Nasdaq further noted that the cost of
Brut data integrated in the TotalView entitlement has already been
approved by the Commission.\8\
---------------------------------------------------------------------------
\7\ See SIA Letter.
\8\ See Nasdaq Response Letter.
---------------------------------------------------------------------------
IV. Discussion
The Commission has carefully reviewed the proposed rule change, the
SIA Letter and the Nasdaq Response Letter and finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
association,\9\ the requirements of Section 15A of the Act,\10\ in
general, and Section 15A(b)(5) of the Act,\11\ in particular, which
requires that the NASD's rules provide for an equitable allocation of
reasonable charges among members for the use of any facility or system
which the NASD operates or controls.
---------------------------------------------------------------------------
\9\ In approving the proposed rule change, the Commission has
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78o-3.
\11\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
The Commission believes that the program whereby a broker-dealer
distributor could obtain an enterprise license for the distribution of
the TotalView market data entitlement for a fixed cost of either
$25,000 per month for non-professional subscribers or of $100,000 per
month for broker-dealer distributors that serve both non-professional
and professional subscribers satisfies the statutory standards outlined
above and will provide increased flexibility to market data vendors,
which may result in increased access to market data.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-NASD-2005-051), as amended,
be, and it hereby is, approved.
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\12\ 15 U.S.C. 78s(b)(2).
\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-4927 Filed 9-8-05; 8:45 am]
BILLING CODE 8010-01-P