Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Fee Pilot for National Quotation Data Service, 8016-8018 [E6-2104]

Download as PDF 8016 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices cprice-sewell on PROD1PC66 with NOTICES narrow-based index could have a significant effect on that index. However, the Exchange is not at this time proposing to change the closing time of 4:15 p.m. (New York time) for options on a broad-based index, as defined in ISE Rule 2001, because the ISE believes it is unlikely that a significant news announcement by the issuer of one component stock of a broad-based index is likely to have a significant effect on the price of that broad-based index. The Exchange proposes to implement the proposed rule change on February 13, 2006.5 III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.6 In particular, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,7 which requires, among other things, that the rules of a national securities exchange 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. The Commission notes that the Exchange believes that the need to continue trading options for some period of time after the close of trading in the underlying securities markets is no longer necessary because improvements in the processing and reporting of transactions have obviated the need to respond to late reports of closing prices over the consolidated tape in order to bring options quotes in line with the closing price of the underlying security. Moreover, the Exchange believes that allowing two additional minutes of options trading after trading on the underlying primary exchanges has ended may actually result in pricing aberrations. Because the two minute delay between the close of normal trading in equity options and narrow-based index options and the corresponding underlying equity markets is no longer necessary, the 5 Id. 6 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 Commission believes that eliminating the delay is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets. Therefore, the Commission finds that it is consistent with the Act for the Exchange to amend its rules to change the close of normal trading hours in equity and narrowbased index options from 4:02 p.m. to 4 p.m. (New York time). The Commission finds good cause for approving this proposed rule change, as amended, before the thirtieth day after publication of notice thereof in the Federal Register. The Commission notes that all of the options exchanges have filed substantially similar proposals and seek to implement these industry-wide changes simultaneously on February 13, 2006.8 For example, on December 20, 2005, the Commission published for comment in the Federal Register a similar proposed rule change submitted by the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’).9 The Commission received no comments on the CBOE’s proposed rule change. The Commission believes that the ISE’s proposed rule change, as amended, raises no new issues or novel regulatory questions. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,10 for approving the proposed rule change, as amended, prior to the thirtieth day after publication in the Federal Register. In addition, because the existence of dissimilar closing times among the options exchanges could lead to confusion for options investors and broker-dealers, the Commission finds good cause to accelerate approval of the proposed rule change to enable the six options exchanges to simultaneously amend their hours of trading on an industry-wide basis in a uniform manner.11 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,12 that the proposed rule change and Amendment No. 1 thereto (SR–ISE–2005–58) be, and hereby are, approved on an accelerated basis. 8 See note 11, infra. Securities Exchange Act Release No. 52949 (December 13, 2005), 70 FR 75513 (December 20, 2005) (SR–CBOE–2005–104). 10 15 U.S.C. 78s(b)(2). 11 The Commission notes that it is simultaneously approving similar proposals from the other options exchanges. See Securities Exchange Act Release Nos. 53244 (SR–Amex–2006–003); 53245 (SR–BSE– 2006–02); 53246 (SR–CBOE–2005–104); 53249 (SR– PCX–2005–138); and 53247 (SR–Phlx–2006–01) (February 7, 2006). 12 15 U.S.C. 78s(b)(2). 9 See PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–2114 Filed 2–14–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53255; File No. SR–NASD– 2006–009] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Fee Pilot for National Quotation Data Service February 8, 2006. 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 January 24, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’), through its subsidiary, The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’), submitted to 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) of the Act 3 and Rule 19b– 4(f)(2) 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to re-establish through December 29, 2006, a pilot program under NASD Rule 7010(h), which reduced from $50 to $10 the monthly fee that non-professional users pay to receive National Quotation Data Service (‘‘NQDS’’). Nasdaq is simultaneously filing a separate rule proposal to re-establish the same pilot program retroactively through September 1, 2005, the date the pilot inadvertently was permitted to lapse. 13 17 CFR 200.30–3(a)(12). 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)(2). 1 15 E:\FR\FM\15FEN1.SGM 15FEN1 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices The text of the proposed rule change is below. Additions are italicized; deletions are [bracketed].5 * * * * * 7010. System Services (a)–(g) No Change. (h) National Quotation Data Service (NQDS) (1) Except as provided in subparagraph (2) of this section, the charge to be paid for each interrogation or display device receiving all or any portion of the information disseminated through the NQDS shall be $50.00 per month. The NQDS information that will be provided through service consists of individual market maker quotations, Nasdaq Level 1 Service and the Last Sale Information Service. (2) For a pilot period ending December 29, 2006, [T]the charge to be paid by a non-professional for each interrogation or display device receiving all or any portion of the NQDS information disseminated through an authorized vendor shall be $10.00 per month. (3) A ‘‘non-professional’’ is a natural person who is neither: (A) Registered or qualified in any capacity with the Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association; (B) Engaged as an ‘‘investment adviser’’ as that term defined in section 201(11) of the Investment Advisors Act of 1940 (whether or not registered or qualified under that Act); nor (C) Employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. (i)–(w) No Change. * * * * * cprice-sewell on PROD1PC66 with NOTICES 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 5 Changes are marked to the rule text that appears in the electronic NASD Manual found at https:// www.nasd.com. Prior to the date when The Nasdaq Stock Market LLC (‘‘Nasdaq LLC’’) commences operations, Nasdaq LLC will file a conforming change to the rules of Nasdaq LLC approved in Securities Exchange Act Release No. 53128 (January 13, 2006). VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq proposes to re-establish for one year the fee reduction pilot program under NASD Rule 7010(h) that reduced from $50 to $10 the monthly fee that non-professional users pay to receive NQDS. NQDS delivers market maker quotations, Nasdaq Level 1 6 service (including calculation and display of the inside market), and last sale information that is dynamically updated on a real-time basis. NQDS data is used not only by firms, associated persons, and other market professionals, but also by non-professionals who receive the service through authorized vendors, including, for example, on-line brokerage firms. Prior to August 31, 2000, NQDS data was available through authorized vendors at a monthly rate of $50 for professional and nonprofessional users alike. In August 2000, the NASD through Nasdaq filed a rule change to reduce from $50 to $10 the monthly fee that non-professional users pay to receive NQDS data.7 The Commission approved the pilot on August 22, 2000, and the fee reduction commenced on August 31, 2000 on a one-year pilot basis.8 On September 5, 2001, August 29, 2002, August 15, 2003, and August 20, 2004, Nasdaq filed proposed rule changes to extend the pilot for additional one-year periods.9 Nasdaq has consistently supported broad, effective dissemination of market information to public investors. Thus, Nasdaq is proposing to re-establish the fee-reduction pilot for the remainder of 2006. The pilot would cover the period from January 24, 2006, through December 29, 2006. Nasdaq notes that the existing pilot reduced by 80% the fees that non-professionals paid for 6 Pursuant to NASD Rule 7010(e), Nasdaq separately distributes Level 1 data to nonprofessionals for a monthly fee of $1.00. 7 See Securities Exchange Act Release No. 43190 (August 22, 2000), 65 FR 52460 (August 29, 2000) (notice of filing and order granting accelerated approval of NASD–00–47). 8 Id. 9 See Securities Exchange Act Release Nos. 44788 (September 13, 2001), 66 FR 48303 (September 19, 2001); 46446 (August 30, 2002), 67 FR 57260 (September 9, 2002); 48386 (August 21, 2003), 68 FR 51618 (August 27, 2003); and 50318 (September 3, 2004), 69 FR 54821 (September 10, 2004). PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 8017 NQDS data prior to August 31, 2000. Continuing the reduction of NQDS for non-professional users demonstrates Nasdaq’s continued commitment to individual investors and responds to the dramatic increase in the demand for real-time market data by nonprofessional market participants. In addition, NASD member firms often supply real-time market data to their customers through automated means. Thus, NASD member firms’ customers would benefit from the continued fee reduction. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with section 15A of the Act,10 in general, and furthers the objectives of section 15A(b)(5) of the Act,11 in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility or system which the Nasdaq operates or controls, and it does not unfairly discriminate between customers, issuers, brokers, or dealers. Nasdaq also believes that the fee reduction enhances the public’s access to market data that is relevant to investors when they make financial decisions and encourages increased public participation in the securities markets. 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 Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change was filed pursuant to section 19(b)(3)(A)(ii) of the Act 12 and Rule 19b–4(f)(2) thereunder,13 because it establishes or changes a due, fee, or other charge imposed by the self-regulatory organization. At any time within 60 days of the filing of such proposed rule change, the 10 15 U.S.C. 78o–3. U.S.C. 78o–3(5). 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(2). 11 15 E:\FR\FM\15FEN1.SGM 15FEN1 8018 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices 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. IV. Solicitation of Comments should be submitted on or before March 8, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–2104 Filed 2–14–06; 8:45 am] BILLING CODE 8010–01–P 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 rulecomments@sec.gov. Please include File Number SR–NASD–2006–009 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53257; File No. SR–NASD– 2006–014] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change and Amendment No. 1 Thereto To Modify the Pricing for Non-Members Using Nasdaq’s Brut and Inet Facilities February 8, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on January to Nancy M. Morris, Secretary, 30, 2006, the National Association of Securities and Exchange Commission, Securities Dealers, Inc. (‘‘NASD’’), 100 F Street, NE., Washington, DC through its subsidiary, The Nasdaq 20549–1090. Stock Market, Inc. (‘‘Nasdaq’’), filed All submissions should refer to File with the Securities and Exchange Number SR–NASD–2006–009. This file Commission (‘‘Commission’’) the number should be included on the proposed rule change as described in subject line if e-mail is used. To help the Items I and II below, which Items have Commission process and review your been prepared by Nasdaq. On February comments more efficiently, please use 1, 2006, Nasdaq submitted Amendment only one method. The Commission will No. 1 to the proposed rule change.3 The post all comments on the Commission’s Commission is publishing this notice to Internet Web site (https://www.sec.gov/ solicit comments on the proposed rule rules/sro.shtml). Copies of the change, as amended, from interested submission, all subsequent persons, and at the same time is amendments, all written statements granting accelerated approval of the with respect to the proposed rule proposed rule change, as amended. change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the Commission and any person, other than Nasdaq proposes to modify the those that may be withheld from the pricing for non-members using Nasdaq’s public in accordance with the Brut and Inet Facilities (‘‘Nasdaq provisions of 5 U.S.C. 552, will be Facilities’’). The filing will apply to available for inspection and copying in these non-members the same unified the Commission’s Public Reference pricing schedule that Nasdaq is Room. Copies of such filing also will be instituting for members.4 Nasdaq available for inspection and copying at requests approval to implement the the principal office of Nasdaq. All comments received will be posted 14 17 CFR 200.30–3(a)(12). without change; the Commission does 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. not edit personal identifying 3 Partial Amendment No. 1 clarifies that the information from submissions. You proposed rule change was approved by the Nasdaq should submit only information that Directors you wish to make available publicly. All Board of24, 2006. on February 1, 2006 and not January submissions should refer to File 4 SR–NASD–2006–013 (January 30, 2006). Number SR–NASD–2006–009 and 5 Securities Exchange Act Release Nos. 52902 cprice-sewell on PROD1PC66 with NOTICES Paper Comments VerDate Aug<31>2005 16:15 Feb 14, 2006 Jkt 208001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 proposed rule change, as amended, retroactively as of February 1, 2006. The text of the proposed rule change, as amended, 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)–(6) No change. (7) The fees applicable to nonmembers using Nasdaq’s Brut and Inet Facilit[y]ies shall be the fees established for members under Rule 7010(i), as amended by SR–NASD–2005–019, SR– NASD–2005–035, SR–NASD–2005–048, SR–NASD–2005–071, SR–NASD–2005– 125, SR–NASD–2005–137, [and] SR– NASD–2005–154, and SR–NASD–2006– 013, and as applied to non-members by SR–NASD–2005–020, SR–NASD–2005– 038, SR–NASD–2005–049, SR–NASD– 2005–072, SR–NASD–2005–126, SR– NASD–2005–138, [and] SR–NASD– 2005–155, and SR–NASD–2006–014. (j)–(v) No change. (w) INET System Connectivity (1) No change. (2) The INET connectivity fees applicable to non-members [using Nasdaq’s INET Facility] shall be the fees established for members under Rule 7010(w), as established by SR–NASD– 2005–128 and amended by SR–NASD– 2005–147 and SR–NASD–2006–013, and as applied to non-members by SR– NASD–2005–128, [and] SR–NASD– 2005–148, and SR–NASD–2006–014. * * * * * 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, as amended, and discussed any comments it received on the proposed rule change, as amended. 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 January 30, 2006, Nasdaq filed SR–NASD–2006–013 with the Commission, establishing a new fee and E:\FR\FM\15FEN1.SGM 15FEN1

Agencies

[Federal Register Volume 71, Number 31 (Wednesday, February 15, 2006)]
[Notices]
[Pages 8016-8018]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2104]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53255; File No. SR-NASD-2006-009]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to the Extension of the Fee Pilot for National 
Quotation Data Service

February 8, 2006.
    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 January 24, 2006, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq''), submitted to 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) of the Act \3\ and Rule 19b-4(f)(2) 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.
---------------------------------------------------------------------------

    \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)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to re-establish through December 29, 2006, a pilot 
program under NASD Rule 7010(h), which reduced from $50 to $10 the 
monthly fee that non-professional users pay to receive National 
Quotation Data Service (``NQDS''). Nasdaq is simultaneously filing a 
separate rule proposal to re-establish the same pilot program 
retroactively through September 1, 2005, the date the pilot 
inadvertently was permitted to lapse.

[[Page 8017]]

The text of the proposed rule change is below. Additions are 
italicized; deletions are [bracketed].\5\
---------------------------------------------------------------------------

    \5\ Changes are marked to the rule text that appears in the 
electronic NASD Manual found at https://www.nasd.com. Prior to the 
date when The Nasdaq Stock Market LLC (``Nasdaq LLC'') commences 
operations, Nasdaq LLC will file a conforming change to the rules of 
Nasdaq LLC approved in Securities Exchange Act Release No. 53128 
(January 13, 2006).
---------------------------------------------------------------------------

* * * * *

7010. System Services

    (a)-(g) No Change.
    (h) National Quotation Data Service (NQDS)
    (1) Except as provided in subparagraph (2) of this section, the 
charge to be paid for each interrogation or display device receiving 
all or any portion of the information disseminated through the NQDS 
shall be $50.00 per month. The NQDS information that will be provided 
through service consists of individual market maker quotations, Nasdaq 
Level 1 Service and the Last Sale Information Service.
    (2) For a pilot period ending December 29, 2006, [T]the charge to 
be paid by a non-professional for each interrogation or display device 
receiving all or any portion of the NQDS information disseminated 
through an authorized vendor shall be $10.00 per month.
    (3) A ``non-professional'' is a natural person who is neither:
    (A) Registered or qualified in any capacity with the Commission, 
the Commodities Futures Trading Commission, any state securities 
agency, any securities exchange or association, or any commodities or 
futures contract market or association;
    (B) Engaged as an ``investment adviser'' as that term defined in 
section 201(11) of the Investment Advisors Act of 1940 (whether or not 
registered or qualified under that Act); nor
    (C) Employed by a bank or other organization exempt from 
registration under federal or state securities laws to perform 
functions that would require registration or qualification if such 
functions were performed for an organization not so exempt.
    (i)-(w) 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.

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

1. Purpose
    Nasdaq proposes to re-establish for one year the fee reduction 
pilot program under NASD Rule 7010(h) that reduced from $50 to $10 the 
monthly fee that non-professional users pay to receive NQDS.
    NQDS delivers market maker quotations, Nasdaq Level 1 \6\ service 
(including calculation and display of the inside market), and last sale 
information that is dynamically updated on a real-time basis. NQDS data 
is used not only by firms, associated persons, and other market 
professionals, but also by non-professionals who receive the service 
through authorized vendors, including, for example, on-line brokerage 
firms. Prior to August 31, 2000, NQDS data was available through 
authorized vendors at a monthly rate of $50 for professional and non-
professional users alike. In August 2000, the NASD through Nasdaq filed 
a rule change to reduce from $50 to $10 the monthly fee that non-
professional users pay to receive NQDS data.\7\ The Commission approved 
the pilot on August 22, 2000, and the fee reduction commenced on August 
31, 2000 on a one-year pilot basis.\8\ On September 5, 2001, August 29, 
2002, August 15, 2003, and August 20, 2004, Nasdaq filed proposed rule 
changes to extend the pilot for additional one-year periods.\9\
---------------------------------------------------------------------------

    \6\ Pursuant to NASD Rule 7010(e), Nasdaq separately distributes 
Level 1 data to non-professionals for a monthly fee of $1.00.
    \7\ See Securities Exchange Act Release No. 43190 (August 22, 
2000), 65 FR 52460 (August 29, 2000) (notice of filing and order 
granting accelerated approval of NASD-00-47).
    \8\ Id.
    \9\ See Securities Exchange Act Release Nos. 44788 (September 
13, 2001), 66 FR 48303 (September 19, 2001); 46446 (August 30, 
2002), 67 FR 57260 (September 9, 2002); 48386 (August 21, 2003), 68 
FR 51618 (August 27, 2003); and 50318 (September 3, 2004), 69 FR 
54821 (September 10, 2004).
---------------------------------------------------------------------------

    Nasdaq has consistently supported broad, effective dissemination of 
market information to public investors. Thus, Nasdaq is proposing to 
re-establish the fee-reduction pilot for the remainder of 2006. The 
pilot would cover the period from January 24, 2006, through December 
29, 2006. Nasdaq notes that the existing pilot reduced by 80% the fees 
that non-professionals paid for NQDS data prior to August 31, 2000. 
Continuing the reduction of NQDS for non-professional users 
demonstrates Nasdaq's continued commitment to individual investors and 
responds to the dramatic increase in the demand for real-time market 
data by non-professional market participants. In addition, NASD member 
firms often supply real-time market data to their customers through 
automated means. Thus, NASD member firms' customers would benefit from 
the continued fee reduction.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
section 15A of the Act,\10\ in general, and furthers the objectives of 
section 15A(b)(5) of the Act,\11\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among members and issuers and other persons using any facility 
or system which the Nasdaq operates or controls, and it does not 
unfairly discriminate between customers, issuers, brokers, or dealers. 
Nasdaq also believes that the fee reduction enhances the public's 
access to market data that is relevant to investors when they make 
financial decisions and encourages increased public participation in 
the securities markets.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78o-3.
    \11\ 15 U.S.C. 78o-3(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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    The foregoing rule change was filed pursuant to section 
19(b)(3)(A)(ii) of the Act \12\ and Rule 19b-4(f)(2) thereunder,\13\ 
because it establishes or changes a due, fee, or other charge imposed 
by the self-regulatory organization.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the

[[Page 8018]]

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.

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-2006-009 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASD-2006-009. 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-2006-009 and should be submitted on or before March 
8, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-2104 Filed 2-14-06; 8:45 am]
BILLING CODE 8010-01-P
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