Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Pricing for NASD Members Using the Nasdaq Market Center and Nasdaq's Brut Facility, 69791-69793 [E5-6355]
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Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Notices
authority to issue and pledge up to an
aggregate principal amount of $963.5
million of first mortgage bonds as
collateral securities (‘‘Bank Collateral
Securities’’),2 which $963.5 million is
not included in the $940 million
referenced above or in the Current
Order’s authorized amount of $560
million of collateral securities related to
tax-exempt bonds. Loans under these
lines (which terminate no later than five
years from the establishment of the
facility) will have maturities of at least
one year from the date of each
borrowing.
The effective cost of capital on
Secured Bank Debt will not exceed
competitive market rates available at the
time of issuance for securities having
the same or reasonably similar terms
and conditions issued by similar
companies of reasonably comparable
credit quality; provided in no event will
the effective cost of money exceed 500
basis points over the London Interbank
Offered Rate for the relevant interest
rate period.
EGSI (70–10158) proposes to issue
Bank Collateral Securities pursuant to
its Indenture of Mortgage, dated as of
September 1, 1926, to JPMorgan Chase
Bank, N.A. as successor Trustee, as
amended and supplemented
(‘‘Mortgage). The Bank Collateral
Securities would be issued on the basis
of unfunded net property additions and/
or previously retired bonds, as
permitted and authorized by the
Mortgage.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6359 Filed 11–16–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52757; File No. SR–NASD–
2005–125]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify Pricing for
NASD Members Using the Nasdaq
Market Center and Nasdaq’s Brut
Facility
69791
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 the 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 (‘‘Brut’’). Nasdaq states that
it implemented the proposed rule
change on November 1, 2005.
The text of the proposed rule change
is below. Proposed new language is in
italics. Proposed deletions are in
[brackets].
*
*
*
*
*
7010. System Services
(a)–(h) No change.
November 9, 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 October
26, 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
(i) Nasdaq Market Center and Brut
Facility Order Execution
(1) The following charges shall apply
to the use of the order execution
services of the Nasdaq Market Center
and Nasdaq’s Brut Facility by members
for Nasdaq-listed securities subject to
the Nasdaq UTP Plan and for ExchangeTraded Funds listed on a national
securities exchange[the American Stock
Exchange; provided, however; that
Directed Orders are not available for
such Exchange-Traded Funds]. The term
‘‘Exchange-Traded Funds’’ shall mean
Portfolio Depository Receipts, Index
Fund Shares, and Trust Issued Receipts
as such terms are defined in Rule
4420(i), (j), and (l), respectively.
ORDER ENTRY
Non-Directed Orders and Preferenced Orders ........................................
No charge.
ORDER EXECUTON
Non-Directed or Preferenced Order that accesses the Quote/Order of a
market participant that does not charge an access fee to market participants accessing its Quotes/Orders through the Nasdaq Market
Center and/or Nasdaq’s Brut Facility:
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 ...............................................................................
$0.0027
trades
$0.0028
trades
$0.0030
trades
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).
Credit to member providing liquidity:
2 This amount of first mortgage bonds is
calculated to reflect the maximum aggregate
principal amount of Secured Bank Debt issuable of
VerDate Aug<31>2005
17:38 Nov 16, 2005
Jkt 208001
$940 million, plus 3 month’s interest at an assumed
rate of 10%.
1 15 U.S.C. 78s(b)(1).
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Fmt 4703
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2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
3 15
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69792
Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Notices
ORDER EXECUTON—Continued
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 .......................................................
Non-Directed or Preferenced Order that accesses the Quote/Order of a
market participant that charges an access fee to market participants
accessing its Quotes/Orders through the Nasdaq Market Center:
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:
500,000 or less ..................................................................................
500,001 or more ................................................................................
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 40 million shares accessed and/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 40 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.
$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).
$0.001 per share executed (but no more than $40 per trade for trades
in securities executed at $1.00 or less per share).
$0.001 per share executed (but no more than $40 per trade for trades
in securities executed at $1.00 or less per share, and no more than
$10,000 per month).
$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.
ORDER CANCELLATION
Non-Directed and Preferenced Orders ....................................................
(2)–(4) No change.
(5) There shall be no charges or
credits for order entry, execution,
routing, or cancellation by members
accessing the Nasdaq Market Center or
Nasdaq’s Brut Facility to buy or sell
exchange-listed securities subject to the
Consolidated Quotations Service and
Consolidated Tape Association plans,
other than: (A) the charges in Rule
7010(i)(1) for Exchange-Traded Funds[
listed on the American Stock Exchange],
(B) charges described in Rule 7010(d),
(C) a fee of $0.0004 per share executed
for orders delivered by Nasdaq’s Brut
Facility to an exchange using the
exchange’s proprietary order delivery
system if such orders do not attempt to
execute in Nasdaq’s Brut Facility or the
VerDate Aug<31>2005
17:38 Nov 16, 2005
Jkt 208001
No charge.
Nasdaq Market Center prior to routing to
the exchange, and (D) a fee of $0.009 per
share executed for any limit order
delivered by Nasdaq’s Brut Facility to
the New York Stock Exchange (‘‘NYSE’’)
using the NYSE’s proprietary order
delivery system if such an order is not
an on-close order, is not executed in the
opening, and remains at the NYSE for
more than 5 minutes.
(6) No change.
(j)–(v) No change.
*
*
*
*
*
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Frm 00061
Fmt 4703
Sfmt 4703
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,
and C below, of the most significant
aspects of such statements.
E:\FR\FM\17NON1.SGM
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Federal Register / Vol. 70, No. 221 / Thursday, November 17, 2005 / Notices
necessary or appropriate in furtherance
of the purposes of the Act.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq is proposing to modify the fee
schedule applicable to execution and
routing of orders in exchange-traded
funds (‘‘ETFs’’) listed on exchanges
other than the American Stock
Exchange (‘‘Amex’’). The change
proposed by this filing applies to NASD
members that use the Nasdaq Market
Center and Brut; in SR–NASD–2005–
126, Nasdaq is proposing to make the
same change applicable to non-members
that use Brut. Nasdaq states that
currently, execution and routing of
Nasdaq-listed stocks and Amex-listed
ETFs is subject to the fee schedule in
NASD Rule 7010(i)(1), whereas
execution and routing of other
exchange-listed securities, including
other exchange-listed ETFs, is generally
not subject to per order routing and
execution charges. Because an
increasing number of ETFs are being
listed on exchanges other than the
Amex, however, Nasdaq states that it
has concluded that it is necessary to
apply the same fee schedule to all ETFs,
to ensure that its fees are commensurate
with the volumes of shares being routed
and executed through its systems.5
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 15A of the Act,6 in
general, and with Section 15A(b)(5) of
the Act,7 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. Nasdaq states that
the proposed change reflects the
increased extent to which ETFs are
being listed on exchanges other than the
Amex and would result in the
application of the same fee schedule to
all ETFs, regardless of where they are
listed.
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
5 The proposed rule change would also delete
obsolete language regarding Directed Orders found
in NASD Rule 7010(i)(1), to reflect the recent
termination of Nasdaq’s Directed Order
functionality.
6 15 U.S.C. 78o–3.
7 15 U.S.C. 78o–3(b)(5).
VerDate Aug<31>2005
17:38 Nov 16, 2005
Jkt 208001
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. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is subject to
Section 19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4 9
thereunder because it establishes or
changes a due, fee, or other charge
imposed by the self-regulatory
organization. Accordingly, the proposal
is effective upon Commission receipt of
the filing. At any time within 60 days
of the filing of such 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.10
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
69793
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 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–2005–125 and
should be submitted on or before
December 8, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6355 Filed 11–16–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34-52758; File No. SR-NASD2005-126]
• 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–2005–125 on the
subject line.
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change To Modify
the Pricing for Non-Members Using
Nasdaq’s Brut Facility
Paper Comments
November 9, 2005.
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NASD–2005–125. 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
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 15 U.S.C. 78s(b)(3)(C).
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 October
26, 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
8 15
11 17
9 17
1 15
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Frm 00062
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FR\FM\17NON1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 221 (Thursday, November 17, 2005)]
[Notices]
[Pages 69791-69793]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6355]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52757; File No. SR-NASD-2005-125]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Modify Pricing for NASD Members Using the Nasdaq Market
Center and Nasdaq's Brut Facility
November 9, 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 October 26, 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 self-regulatory 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
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 (``Brut''). Nasdaq
states that it implemented the proposed rule change on November 1,
2005.
The text of the proposed rule change is below. Proposed new
language is in italics. Proposed deletions are in [brackets].
* * * * *
7010. System Services
(a)-(h) No change.
(i) Nasdaq Market Center and Brut Facility Order Execution
(1) The following charges shall apply to the use of the order
execution services of the Nasdaq Market Center and Nasdaq's Brut
Facility by members for Nasdaq-listed securities subject to the Nasdaq
UTP Plan and for Exchange-Traded Funds listed on a national securities
exchange[the American Stock Exchange; provided, however; that Directed
Orders are not available for such Exchange-Traded Funds]. The term
``Exchange-Traded Funds'' shall mean Portfolio Depository Receipts,
Index Fund Shares, and Trust Issued Receipts as such terms are defined
in Rule 4420(i), (j), and (l), respectively.
Order Entry
------------------------------------------------------------------------
------------------------------------------------------------------------
Non-Directed Orders and Preferenced No charge.
Orders.
------------------------------------------------------------------------
Order Executon
------------------------------------------------------------------------
------------------------------------------------------------------------
Non-Directed or Preferenced Order that
accesses the Quote/Order of a market
participant that does not charge an
access fee to market participants
accessing its Quotes/Orders through
the Nasdaq Market Center and/or
Nasdaq's Brut Facility:
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 $0.0028 per share executed (but
than or equal to 10,000,000. no more than $112 per 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).
Credit to member providing liquidity:
[[Page 69792]]
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 $0.0022 per share executed (but
than or equal to 20,000,000. no more than $88 per 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).
Non-Directed or Preferenced Order that
accesses the Quote/Order of a market
participant that charges an access fee
to market participants accessing its
Quotes/Orders through the Nasdaq
Market Center:
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:
500,000 or less.................... $0.001 per share executed (but
no more than $40 per trade for
trades in securities executed
at $1.00 or less per share).
500,001 or more.................... $0.001 per share executed (but
no more than $40 per trade for
trades in securities executed
at $1.00 or less per share,
and no more than $10,000 per
month).
Routed Orders
Any order entered by a member that is $0.004 per share executed.
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 $0.0025 per share executed.
liquidity provided and greater
than 40 million shares accessed
and/or routed.
Greater than 10 million but less $0.0027 per share executed.
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 40 million
or fewer shares accessed and/or
routed.
Greater than 2,000,000 but less $0.0028 per share executed.
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 $0.0030 per share executed.
shares of liquidity provided and
any amount accessed and/or routed.
------------------------------------------------------------------------
Order Cancellation
------------------------------------------------------------------------
------------------------------------------------------------------------
Non-Directed and Preferenced Orders.... No charge.
------------------------------------------------------------------------
(2)-(4) No change.
(5) There shall be no charges or credits for order entry,
execution, routing, or cancellation by members accessing the Nasdaq
Market Center or Nasdaq's Brut Facility to buy or sell exchange-listed
securities subject to the Consolidated Quotations Service and
Consolidated Tape Association plans, other than: (A) the charges in
Rule 7010(i)(1) for Exchange-Traded Funds[ listed on the American Stock
Exchange], (B) charges described in Rule 7010(d), (C) a fee of $0.0004
per share executed for orders delivered by Nasdaq's Brut Facility to an
exchange using the exchange's proprietary order delivery system if such
orders do not attempt to execute in Nasdaq's Brut Facility or the
Nasdaq Market Center prior to routing to the exchange, and (D) a fee of
$0.009 per share executed for any limit order delivered by Nasdaq's
Brut Facility to the New York Stock Exchange (``NYSE'') using the
NYSE's proprietary order delivery system if such an order is not an on-
close order, is not executed in the opening, and remains at the NYSE
for more than 5 minutes.
(6) No change.
(j)-(v) No change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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, and C below, of the most significant aspects of such statements.
[[Page 69793]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq is proposing to modify the fee schedule applicable to
execution and routing of orders in exchange-traded funds (``ETFs'')
listed on exchanges other than the American Stock Exchange (``Amex'').
The change proposed by this filing applies to NASD members that use the
Nasdaq Market Center and Brut; in SR-NASD-2005-126, Nasdaq is proposing
to make the same change applicable to non-members that use Brut. Nasdaq
states that currently, execution and routing of Nasdaq-listed stocks
and Amex-listed ETFs is subject to the fee schedule in NASD Rule
7010(i)(1), whereas execution and routing of other exchange-listed
securities, including other exchange-listed ETFs, is generally not
subject to per order routing and execution charges. Because an
increasing number of ETFs are being listed on exchanges other than the
Amex, however, Nasdaq states that it has concluded that it is necessary
to apply the same fee schedule to all ETFs, to ensure that its fees are
commensurate with the volumes of shares being routed and executed
through its systems.\5\
---------------------------------------------------------------------------
\5\ The proposed rule change would also delete obsolete language
regarding Directed Orders found in NASD Rule 7010(i)(1), to reflect
the recent termination of Nasdaq's Directed Order functionality.
---------------------------------------------------------------------------
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\6\ in general, and with
Section 15A(b)(5) of the Act,\7\ 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.
Nasdaq states that the proposed change reflects the increased extent to
which ETFs are being listed on exchanges other than the Amex and would
result in the application of the same fee schedule to all ETFs,
regardless of where they are listed.
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\6\ 15 U.S.C. 78o-3.
\7\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will result
in 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. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is subject to Section 19(b)(3)(A)(ii) of
the Act \8\ and subparagraph (f)(2) of Rule 19b-4 \9\ thereunder
because it establishes or changes a due, fee, or other charge imposed
by the self-regulatory organization. Accordingly, the proposal is
effective upon Commission receipt of the filing. At any time within 60
days of the filing of such 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.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
\10\ 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2005-125 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NASD-2005-125. 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 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-2005-125 and should be submitted on or before
December 8, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-6355 Filed 11-16-05; 8:45 am]
BILLING CODE 8010-01-P
