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, 8018-8020 [E6-2105]

Download as PDF 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 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices credit schedule (effective February 1, 2006) for order execution and routing by NASD members that spans activity on the Nasdaq Market Center, Brut, and Inet (the ‘‘Nasdaq Facilities’’). Nasdaq proposes to establish that same fee and rebate structure for non-NASD members that use Brut and Inet. Nasdaq is seeking accelerated approval of the non-member fee and rebate structure as well as a retroactive effective date of February 1, 2006. In SR–NASD–2005–128,5 Nasdaq’s filing to establish rules for the newly acquired Inet ECN, Nasdaq committed that it would, within 60 days of the closing of the acquisition of Inet, file an integrated fee and credit structure governing the use of all of the Nasdaq Facilities. Nasdaq states that the fee and rebate structure is based on multiple volume-based usage tiers that take into account the combined volume of a market participant on all of the Nasdaq Facilities. Nasdaq believes that this integrated and uniform pricing structure would encourage activity on the Nasdaq Facilities and would not provide financial incentives to use one system versus the other. Nasdaq states that this non-member filing would ensure that both NASD members and non-NASD member users will pay equivalent fees and receive equivalent credits based on their trading activity and that the imposition of those fees would have begun on the same February 1, 2006 start date. Nasdaq states that NASD Rules 4901 and 4952 currently provide that Brut and Inet will not be available to nonmembers after February 8, 2006. However, Nasdaq anticipates submitting an immediately effective rule change to extend this date in a manner that would allow at least some of Brut and Inet’s current non-member broker-dealer subscribers to continue using these systems during the transitional period prior to the date on which The NASDAQ Stock Market LLC (‘‘NASDAQ LLC’’) begins to operate as a national securities exchange (the ‘‘Operational Date’’).6 The Commission-approved rules of NASDAQ LLC 7 provide that all users of the Nasdaq Facilities after the Operational Date must be members of NASDAQ LLC, and Nasdaq is making cprice-sewell on PROD1PC66 with NOTICES 5 Securities Exchange Act Release Nos. 52902 (December 7, 2005), 70 FR 73810 (December 13, 2005) (SR–NASD–2005–128) and 52723 (November 2, 2005), 70 FR 67513 (November 7, 2005) (SR– NASD–2005–128). 6 Nasdaq filed this rule change on February 7, 2006 (SR–NASD–2006–002). 7 Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3350 (January 23, 2006) (File No. 10–131) (approving registration of Nasdaq Stock Market LLC as a National Securities Exchange). VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 all non-member subscribers aware of the need to become members of NASDAQ LLC if they wish to continue to use any of the Nasdaq Facilities after the Operational Date.8 Nasdaq believes that this filing is necessary, however, to ensure that non-members using Brut and Inet prior to the Operational Date would be subject to the same fee structure as members, regardless of the duration of their actual period of usage. Therefore, Nasdaq believes that, even if the period of non-member usage is not extended beyond February 8, 2006, this filing would be needed to establish the fees and credits for non-members between February 1, 2006 and February 8, 2006. 2. Statutory Basis Nasdaq believes that the proposed rule change, as amended, is consistent with the provisions of section 15A of the Act,9 in general, and with section 15A(b)(5) of the Act,10 in particular, in that the proposed rule change, as amended, 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. The proposed rule change, as amended, applies to nonmembers that use Brut and Inet a fee change that is being implemented for NASD members that use the Nasdaq Facilities. Accordingly, Nasdaq believes that the proposed rule change, as amended, promotes an equitable allocation of fees between members and non-members using Nasdaq’s order execution facilities. 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. 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, as amended, is consistent with 8 See Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10–131). 9 15 U.S.C. 78o–3. 10 15 U.S.C. 78o–3(b)(5). PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 8019 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–2006–014 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–2006–014. 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–2006–014 and should be submitted on or before March 8, 2006. 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.11 Specifically, the Commission believes that the proposed 11 The Commission has considered the proposed rule’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). E:\FR\FM\15FEN1.SGM 15FEN1 8020 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices rule change, as amended, is consistent with section 15A(b)(5) of the Act,12 which requires that the rules of the selfregulatory 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. The Commission notes that this proposal would retroactively modify pricing for non-NASD members using the Nasdaq Facilities that would permit the schedule for non-NASD members to mirror the schedule applicable to NASD members that became effective February 1, 2006, pursuant to SR–NASD–2006– 013. The Commission finds good cause for approving the proposed rule change, as amended, prior to the 30th day of the date of publication of the notice thereof in the Federal Register. The Commission notes that the proposed fees for non-NASD members are identical to those in SR–NASD–2006– 013, which implemented those fees for NASD members and which became effective as of February 1, 2006. The Commission notes that this change will promote consistency in Nasdaq’s fee schedule by applying the same pricing 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,13 to approve the proposed rule change, as amended, on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,14 that the proposed rule change, as amended, (File No. SR–NASD–2006–014), is approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–2105 Filed 2–14–06; 8:45 am] cprice-sewell on PROD1PC66 with NOTICES BILLING CODE 8010–01–P 12 15 U.S.C. 78o–3(b)(5). U.S.C. 78s(b)(2). 14 15 U.S.C. 78s(b)(2). 15 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 13:17 Feb 14, 2006 [Release No. 34–53256; File No. SR–NASD– 2006–013] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Establish a Unified Pricing Schedule for NASD Members Using the Nasdaq Market Center and 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 notice is hereby given that on January 30, 2006, 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. On February 1, 2006, Nasdaq submitted Amendment No. 1 to the proposed rule change.3 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) 4 of the Act and Rule 19b–4(f)(2) thereunder,5 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, 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 and Inet Facilities (‘‘Nasdaq Facilities’’). Nasdaq states that it will implement the proposed rule change on 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].6 * * * * * 3 Partial Amendment No. 1 (‘‘Amendment No. 1’’) clarifies that the proposed rule change was approved by the Nasdaq Board of Directors on February 1, 2006 and not January 24, 2006. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). 6 Changes are marked to the rule text that appears in the electronic NASD Manual found at https:// 13 15 VerDate Aug<31>2005 SECURITIES AND EXCHANGE COMMISSION Jkt 208001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 7010. System Services (a)–(b) No change. (c)(1) No change. (2) Exchange-Listed Securities Transaction Credit NASD members that trade securities listed on the NYSE (‘‘Tape A’’) and Amex (‘‘Tape B’’) in over-the-counter transactions may receive from the NASD transaction credits based on the number of transactions attributed to them. A transaction is attributed to a member if (i) for Tape B securities, the transaction is executed through CAES, ITS, or Nasdaq’s Brut or Inet Facilit[y]ies, and the member acts as liquidity provider (i.e., the member sells in response to a buy order or buys in response to a sell order) or (ii) for Tape A and Tape B securities, the transaction is not executed through CAES, ITS, or Nasdaq’s Brut or Inet Facilit[y]ies, and the member is identified as the executing party in a trade report submitted to the NASD that the NASD submits to the Consolidated Tape Association. An NASD member may earn credits from one or both pools maintained by the NASD, each pool representing 50% of the revenue paid by the Consolidated Tape Association to the NASD for each of Tape A and Tape B transactions after deducting the amount that the NASD pays to the Consolidated Tape Association for capacity usage. An NASD member may earn credits from the pools according to the member’s pro rata share of all overthe-counter transactions attributed to NASD members in each of Tape A and Tape B for each calendar quarter. (d)–(h) No change. (i) Nasdaq Market Center, [and] Brut, and Inet [Facility] Order Execution and Routing (1) The following charges shall apply to the use of the order execution and routing services of the Nasdaq Market Center, [and Nasdaq’s] Brut, and Inet [Facility] (the ‘‘Nasdaq Facilities’’) by members for all Nasdaq-listed securities subject to the Nasdaq UTP Plan and for Exchange-Traded Funds that are not listed on Nasdaq [a national securities exchange]. 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. 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), 71 FR 3550 (January 23, 2006) (File No. 10–131). E:\FR\FM\15FEN1.SGM 15FEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 31 (Wednesday, February 15, 2006)]
[NOTI]
[Pages 8018-8020]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2105]


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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\ notice is hereby given that 
on January 30, 2006, 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. On February 1, 
2006, Nasdaq submitted Amendment No. 1 to the proposed rule change.\3\ 
The Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons, and at the 
same time is granting accelerated approval of the proposed rule change, 
as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Partial Amendment No. 1 clarifies that the proposed rule 
change was approved by the Nasdaq Board of Directors on February 1, 
2006 and not January 24, 2006.
---------------------------------------------------------------------------

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

    Nasdaq proposes to modify the pricing for non-members using 
Nasdaq's Brut and Inet Facilities (``Nasdaq Facilities''). The filing 
will apply to these non-members the same unified pricing schedule that 
Nasdaq is instituting for members.\4\ Nasdaq requests approval to 
implement the proposed rule change, as amended, retroactively as of 
February 1, 2006.
---------------------------------------------------------------------------

    \4\ SR-NASD-2006-013 (January 30, 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 non-members 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

[[Page 8019]]

credit schedule (effective February 1, 2006) for order execution and 
routing by NASD members that spans activity on the Nasdaq Market 
Center, Brut, and Inet (the ``Nasdaq Facilities''). Nasdaq proposes to 
establish that same fee and rebate structure for non-NASD members that 
use Brut and Inet. Nasdaq is seeking accelerated approval of the non-
member fee and rebate structure as well as a retroactive effective date 
of February 1, 2006.
    In SR-NASD-2005-128,\5\ Nasdaq's filing to establish rules for the 
newly acquired Inet ECN, Nasdaq committed that it would, within 60 days 
of the closing of the acquisition of Inet, file an integrated fee and 
credit structure governing the use of all of the Nasdaq Facilities. 
Nasdaq states that the fee and rebate structure is based on multiple 
volume-based usage tiers that take into account the combined volume of 
a market participant on all of the Nasdaq Facilities. Nasdaq believes 
that this integrated and uniform pricing structure would encourage 
activity on the Nasdaq Facilities and would not provide financial 
incentives to use one system versus the other. Nasdaq states that this 
non-member filing would ensure that both NASD members and non-NASD 
member users will pay equivalent fees and receive equivalent credits 
based on their trading activity and that the imposition of those fees 
would have begun on the same February 1, 2006 start date.
---------------------------------------------------------------------------

    \5\ Securities Exchange Act Release Nos. 52902 (December 7, 
2005), 70 FR 73810 (December 13, 2005) (SR-NASD-2005-128) and 52723 
(November 2, 2005), 70 FR 67513 (November 7, 2005) (SR-NASD-2005-
128).
---------------------------------------------------------------------------

    Nasdaq states that NASD Rules 4901 and 4952 currently provide that 
Brut and Inet will not be available to non-members after February 8, 
2006. However, Nasdaq anticipates submitting an immediately effective 
rule change to extend this date in a manner that would allow at least 
some of Brut and Inet's current non-member broker-dealer subscribers to 
continue using these systems during the transitional period prior to 
the date on which The NASDAQ Stock Market LLC (``NASDAQ LLC'') begins 
to operate as a national securities exchange (the ``Operational 
Date'').\6\ The Commission-approved rules of NASDAQ LLC \7\ provide 
that all users of the Nasdaq Facilities after the Operational Date must 
be members of NASDAQ LLC, and Nasdaq is making all non-member 
subscribers aware of the need to become members of NASDAQ LLC if they 
wish to continue to use any of the Nasdaq Facilities after the 
Operational Date.\8\ Nasdaq believes that this filing is necessary, 
however, to ensure that non-members using Brut and Inet prior to the 
Operational Date would be subject to the same fee structure as members, 
regardless of the duration of their actual period of usage. Therefore, 
Nasdaq believes that, even if the period of non-member usage is not 
extended beyond February 8, 2006, this filing would be needed to 
establish the fees and credits for non-members between February 1, 2006 
and February 8, 2006.
---------------------------------------------------------------------------

    \6\ Nasdaq filed this rule change on February 7, 2006 (SR-NASD-
2006-002).
    \7\ Securities Exchange Act Release No. 53128 (January 13, 
2006), 71 FR 3350 (January 23, 2006) (File No. 10-131) (approving 
registration of Nasdaq Stock Market LLC as a National Securities 
Exchange).
    \8\ See Securities Exchange Act Release No. 53128 (January 13, 
2006), 71 FR 3550 (January 23, 2006) (File No. 10-131).
---------------------------------------------------------------------------

2. Statutory Basis
    Nasdaq believes that the proposed rule change, as amended, is 
consistent with the provisions of section 15A of the Act,\9\ in 
general, and with section 15A(b)(5) of the Act,\10\ in particular, in 
that the proposed rule change, as amended, 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. The proposed rule change, as amended, 
applies to non-members that use Brut and Inet a fee change that is 
being implemented for NASD members that use the Nasdaq Facilities. 
Accordingly, Nasdaq believes that the proposed rule change, as amended, 
promotes an equitable allocation of fees between members and non-
members using Nasdaq's order execution facilities.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78o-3.
    \10\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

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.

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, as amended, 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-2006-014 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-2006-014. 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-2006-014 and should be submitted on or before March 
8, 2006.

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.\11\ 
Specifically, the Commission believes that the proposed

[[Page 8020]]

rule change, as amended, is consistent with section 15A(b)(5) of the 
Act,\12\ 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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    \11\ The Commission has considered the proposed rule's impact on 
efficiency, competition and capital formation. 15 U.S.C. 78c(f).
    \12\ 15 U.S.C. 78o-3(b)(5).
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    The Commission notes that this proposal would retroactively modify 
pricing for non-NASD members using the Nasdaq Facilities that would 
permit the schedule for non-NASD members to mirror the schedule 
applicable to NASD members that became effective February 1, 2006, 
pursuant to SR-NASD-2006-013.
    The Commission finds good cause for approving the proposed rule 
change, as amended, prior to the 30th day of the date of publication of 
the notice thereof in the Federal Register. The Commission notes that 
the proposed fees for non-NASD members are identical to those in SR-
NASD-2006-013, which implemented those fees for NASD members and which 
became effective as of February 1, 2006. The Commission notes that this 
change will promote consistency in Nasdaq's fee schedule by applying 
the same pricing 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,\13\ 
to approve the proposed rule change, as amended, on an accelerated 
basis.
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    \13\ 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,\14\ that the proposed rule change, as amended, (File No. SR-NASD-
2006-014), is approved on an accelerated basis.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-2105 Filed 2-14-06; 8:45 am]
BILLING CODE 8010-01-P

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