Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Reduce Routing Charges for NASD Members, 14760-14763 [E6-4186]
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14760
Federal Register / Vol. 71, No. 56 / Thursday, March 23, 2006 / Notices
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.8 Specifically, the
Commission believes that the proposed
rule change, as amended, is consistent
with Section 15A(b)(5) of the Act,9
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 March 1,
2006, pursuant to SR–NASD–2006–031.
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–
031, which implemented those fees for
NASD members and which became
effective as of March 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,10 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,11 that the
proposed rule change, as amended, (File
No. SR–NASD–2006–032), is approved
on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–4175 Filed 3–22–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53504; File No. SR–NASD–
2006–031]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Reduce Routing
Charges for NASD Members
19(b)(3)(A)(ii) 3 of the Act and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq proposes to reduce its routing
fees and eliminate a port fee waiver
currently available to certain INET
users. Nasdaq states that it will
implement the proposed rule change
immediately. Nasdaq states that this
filing is applicable only to NASD
members. Nasdaq states that it is also
submitting a separate filing to establish
the same routing price reductions and
port fee waiver elimination for nonNASD members that use its systems.5
The text of the proposed rule change
is below. Proposed new language is in
italics; proposed deletions are in
[brackets].6
*
*
*
*
*
7010. System Services
March 16, 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 March 1,
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. Nasdaq
has designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the selfregulatory organization under Section
(a) through (h) No change.
(i) Nasdaq Market Center, Brut, and
Inet 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, Brut, and Inet (the ‘‘Nasdaq
Facilities’’) by members for all Nasdaqlisted securities subject to the Nasdaq
UTP Plan and for Exchange-Traded
Funds that are not listed on Nasdaq. 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 Execution
wwhite on PROD1PC61 with NOTICES
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 Facilities:
Charge to member entering order:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of (i) more than 30 million shares of
liquidity provided, and (ii) more than 50 million shares of liquidity
accessed and/or routed.
Other members .........................................................................................
8 The Commission has considered the proposed
rule’s impact on efficiency, competition and capital
formation. 15 U.S.C. 78c(f).
9 15 U.S.C. 78o–3(b)(5).
10 15 U.S.C. 78s(b)(2).
11 15 U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
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16:54 Mar 22, 2006
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$0.0028 per share executed (or, in the case of executions against
Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost).
$0.0030 per share executed (or, in the case of executions against
Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost).
2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 See File No. SR–NASD–2006–32 (March 1,
2006).
6 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
3 15
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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).
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Federal Register / Vol. 71, No. 56 / Thursday, March 23, 2006 / Notices
14761
Credit to member providing liquidity:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of more than 30 million shares of liquidity provided.
Other members .........................................................................................
$0.0025 per share executed (or $0, in the case of executions against
Quotes/Orders at less than $1.00 per share).
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 Facilities:
Charge to member entering order:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of more than 500,000 shares of liquidity provided.
Other members .........................................................................................
$0.001 per share executed (but no more than $10,000 per month).
$0.0020 per share executed (or $0, in the case of executions against
Quotes/Orders at less than $1.00 per share).
$0.001 per share executed.
Order Routing for Nasdaq-Listed Securities
Any order entered by a member that is routed outside of the Nasdaq
Facilities and that does not attempt to execute in the Nasdaq Facilities prior to routing.
Any other order entered by a member that is routed outside of the
Nasdaq Facilities:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of (i) more than 30 million shares of
liquidity provided, and (ii) more than 50 million shares of liquidity
accessed and/or routed.
Other members .........................................................................................
The greater of (i) $0.004 per share executed or (ii) a pass-through of
all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed.
The greater of (i) $0.0028 per share executed or (ii) a pass-through of
all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed.
The greater of (i) $0.0030 per share executed or (ii) a pass-through of
all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed.
Order Routing for Exchange-Traded Funds Not Listed On Nasdaq
Order routed to the New York Stock Exchange (‘‘NYSE’’) through its
DOT system.
Any other order entered by a member that is routed outside of the
Nasdaq Facilities and that does not attempt to execute in the
Nasdaq Facilities prior to routing.
Order routed to the American Stock Exchange (‘‘Amex’’) after attempting to execute in the Nasdaq Facilities.
Order routed through the Intermarket Trading System (‘‘ITS’’) after attempting to execute in the Nasdaq Facilities.
Order routed to venues other than the NYSE and Amex after attempting to execute in the Nasdaq Facilities.
(2) For purposes of assessing Nasdaq
Facilities fees and credits hereunder, (A)
a Discretionary Order that executes
prior to being displayed as a Quote/
Order will always be deemed to be
accessing liquidity unless it is executed
by (or receives delivery of) a displayed
wwhite on PROD1PC61 with NOTICES
(5) Except as provided in paragraph
(6), the following charges shall apply to
the use of the order execution and
16:54 Mar 22, 2006
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$0.01 per share executed.
$0.0007 per share executed.
$0.003[5] per share executed.
Discretionary Order executes against (or
is delivered to) a Quote/Order or NonDirected Order that has not been
designated ‘‘Immediate or Cancel,’’ at a
price in its discretionary price range.
(3) Closing Cross.
$0.0005 per share executed.
No charge for execution.
execution fees for quotes and orders
executed in the Nasdaq Opening Cross:
Market-on-Open, Limit-on-Open, Good-till-Cancelled, Immediate-orCancel, and Day orders executed in the Nasdaq Opening Cross.
All other quotes and orders executed in the Nasdaq Opening Cross .....
VerDate Aug<31>2005
$0.004 per share executed.
Discretionary Order at a price in the
discretionary price range of the
displayed Discretionary Order, and (B) a
Discretionary Order that executes after
being displayed as a Quote/Order will
always be deemed to be providing
liquidity, unless the displayed
Market-on-Close and Limit-on-Close orders executed in the Nasdaq
Closing Cross.
All other quotes and orders executed in the Nasdaq Closing Cross ......
(4) Opening Cross.
Members shall be assessed the
following Nasdaq Market Center
See DOT fee schedule in Rule 7010(i)(6).
$0.0005 per share executed for the net number of buy and sell shares
up to a maximum of $10,000 per firm per month.
No charge for execution.
routing services of the Nasdaq Facilities
by members for securities subject to the
Consolidated Quotations Service and
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Consolidated Tape Association plans
other than Exchange-Traded Funds
(‘‘Covered Securities’’):
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Federal Register / Vol. 71, No. 56 / Thursday, March 23, 2006 / Notices
Order Execution
Order that accesses the Quote/Order of a Nasdaq Facility market participant:
Charge to member entering order ............................................................
Credit to member providing liquidity:
Members with an average daily volume through the Nasdaq Facilities
in Covered Securities during the month of more than 5 million shares
of liquidity accessed, provided, or routed.
Other members .........................................................................................
$0.0007 per share executed.
$0.0005 per share executed.
No credit.
Order Routing
Order routed to Amex ...............................................................................
Order routed through the ITS ...................................................................
Order routed to NYSE ..............................................................................
Order for NYSE-listed Covered Security routed to venue other than the
NYSED $0.001 [5] per share executed.
Order for Covered Security listed on venue other than the NYSE and
routed to venue other than Amex.
(6) The following classes shall apply
to the use of the Nasdaq Facilities by
(w) INET System Connectivity
wwhite on PROD1PC61 with NOTICES
(1) The following charges shall apply
to telecommunication protocols used to
access Nasdaq’s INET System:
Port Fees:
Connectivity to Harborside Financial
Center and Secaucus Datacenters
$400 per month for each port pair,
other than Multicast ITCH data feed
pairs, for which the fee is $1000 per
month.
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16:54 Mar 22, 2006
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$0.003 [5] per share executed.
members for routing to the NYSE
through its DOT system for all
Order charged a fee by the NYSE specialist ...........................................
Order that attempts to execute in the Nasdaq Facilities prior to routing
and that is not charged a fee by the NYSE specialist.
Order that does not attempt to execute in the Nasdaq Facilities prior to
routing and that is not charged a fee by the NYSE specialist:
Average daily shares of liquidity routed through Nasdaq’s DOT linkage
by the member during the month:
More than 30 million .................................................................................
Between 2,000,001 and 30 million ...........................................................
Between 250,001 and 2 million ................................................................
Between 100,001 and 250,000 ................................................................
100,000 or less .........................................................................................
(7) The fees applicable to nonmembers using Nasdaq’s Brut and Inet
Facilities 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, SR–NASD–
2005–154, SR–NASD–2006–013, and
SR–NASD–2006–023, 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, SR–
NASD–2005–155, SR–NASD–2006–014,
and SR–NASD–2006–024.
(j) through (v) No Change.
$0.01 per share executed.
$0.0007 per share executed.
See DOT fee schedule in Rule 7010(i)(6).
$0.01 per share executed.
No charge.
$0.0001 per share executed.
$0.0003 per share executed.
$0.0005 per share executed.
$0.001 per share executed.
$0.01 per share executed.
Internet Ports: An additional $200 per
month for each Internet port that
requires additional bandwidth.
Connectivity to Chicago Datacenter
$800 per month for each port pair.
[All port fees, not including Internet
Bandwidth surcharges, will be waived
for Subscribers that for a calendar
month have an average daily share
volume for executed orders exceeding
30 million shares of added liquidity.]
INET Terminal Fees:
Each ID is subject to a minimum
commission fee of $50 per month unless
it executes a minimum of 100,000
shares.
Each ID receiving market data is
subject to pass-through fees for use of
these services. Pricing for these services
is determined by the exchanges and/or
market center.
Each ID that is given web access is
subject to a $50 monthly fee.
Portal Fees:
Each ID is subject to a monthly user
fee of $150.
Each ID receiving market data is
subject to pass-through fees for use of
these services. Pricing for these services
is determined by the exchanges and/or
market center.
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Frm 00086
Fmt 4703
securities, including Exchange-Traded
Funds:
Sfmt 4703
(2) The INET connectivity fees
applicable to non-members 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, 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 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.
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Federal Register / Vol. 71, No. 56 / Thursday, March 23, 2006 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In order to encourage greater use of
Nasdaq routing facilities, Nasdaq is
proposing to reduce its routing fees as
follows:
(1) Nasdaq would reduce, from
$0.0015 to $0.001, the fee per share
executed for routing orders in New York
Stock Exchange (‘‘NYSE’’) listed
securities to venues other than the
NYSE;
(2) Nasdaq would reduce, from
$0.0035 to $0.003, the fee per share
executed for routing orders in securities
listed on a venue other than the NYSE
and routed to venues other than the
American Stock Exchange (‘‘AMEX’’);
(3) Nasdaq would reduce, from
$0.0035 to $0.003, the fee per share
executed for routing orders in NonNasdaq Exchange Traded Funds
(‘‘ETFs’’) to venues other than the NYSE
or AMEX.
Finally, Nasdaq is proposing to
eliminate the port fee waiver for
Nasdaq’s INET facility subscribers that
for a calendar month average daily
execution of orders in the INET system
of in excess of 30 million shares of
added liquidity. Nasdaq states that this
port fee waiver is part of INET’s legacy
pricing structure and is inconsistent
with Nasdaq’s integrated pricing
structure in which no other system
provides such fee waivers.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 15A of the Act,7 in
general, and with Section 15A(b)(5) of
the Act,8 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 NASD operates or controls. In
particular, Nasdaq states that the
proposal will reduce routing costs for
market participants and more closely
unify Nasdaq pricing policies across all
of its systems.
wwhite on PROD1PC61 with NOTICES
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.
7 15
8 15
U.S.C. 78o–3.
U.S.C. 78o–3(b)(5).
VerDate Aug<31>2005
16:54 Mar 22, 2006
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 9 and
subparagraph (f)(2) of Rule 19b–4 10
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.
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 rulecomments@sec.gov. Please include File
Number SR–NASD–2006–031 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–2006–031. 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
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
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–2006–031 and
should be submitted on or before April
13, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–4186 Filed 3–22–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53497; File No. SR–PCX–
2005–122]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing of
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
Amending Exchange Delisting Rules to
Conform to Recent Amendments to
Commission Rules Regarding Removal
From Listing and Withdrawal from
Registration
March 16, 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 October
24, 2005, the Pacific Exchange, Inc.
(‘‘PCX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange.3 On January
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 On March 6, 2006, the Exchange filed with the
Commission a proposed rule change, which was
effective upon filing, to change the name of the
Exchange, as well as several other related entities,
to reflect the recent acquisition of PCX by
Archipelago Holdings, Inc. (‘‘Archipelago’’) and the
merger of NYSE with Archipelago. See File No. SR–
1 15
10 17
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Continued
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]]>Agencies
[Federal Register Volume 71, Number 56 (Thursday, March 23, 2006)]
[Notices]
[Pages 14760-14763]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4186]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53504; File No. SR-NASD-2006-031]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change to Reduce Routing Charges for NASD Members
March 16, 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 March 1, 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. 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 reduce its routing fees and eliminate a port fee
waiver currently available to certain INET users. Nasdaq states that it
will implement the proposed rule change immediately. Nasdaq states that
this filing is applicable only to NASD members. Nasdaq states that it
is also submitting a separate filing to establish the same routing
price reductions and port fee waiver elimination for non-NASD members
that use its systems.\5\
---------------------------------------------------------------------------
\5\ See File No. SR-NASD-2006-32 (March 1, 2006).
---------------------------------------------------------------------------
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in [brackets].\6\
---------------------------------------------------------------------------
\6\ 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), 71 FR 3550 (January 23, 2006) (File No. 10-131).
---------------------------------------------------------------------------
* * * * *
7010. System Services
(a) through (h) No change.
(i) Nasdaq Market Center, Brut, and Inet 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, Brut, and
Inet (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. 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 Execution
------------------------------------------------------------------------
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 Facilities:
Charge to member entering order:
Members with an average daily volume $0.0028 per share executed (or,
through the Nasdaq Facilities in all in the case of executions
securities during the month of (i) against Quotes/Orders at less
more than 30 million shares of than $1.00 per share, 0.1% of
liquidity provided, and (ii) more than the total transaction cost).
50 million shares of liquidity
accessed and/or routed.
Other members.......................... $0.0030 per share executed (or,
in the case of executions
against Quotes/Orders at less
than $1.00 per share, 0.1% of
the total transaction cost).
[[Page 14761]]
Credit to member providing liquidity:
Members with an average daily volume $0.0025 per share executed (or
through the Nasdaq Facilities in all $0, in the case of executions
securities during the month of more against Quotes/Orders at less
than 30 million shares of liquidity than $1.00 per share).
provided.
Other members.......................... $0.0020 per share executed (or
$0, in the case of executions
against Quotes/Orders at less
than $1.00 per share).
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 Facilities:
Charge to member entering order:
Members with an average daily volume $0.001 per share executed (but
through the Nasdaq Facilities in all no more than $10,000 per
securities during the month of more month).
than 500,000 shares of liquidity
provided.
Other members.......................... $0.001 per share executed.
------------------------------------------------------------------------
Order Routing for Nasdaq-Listed Securities
------------------------------------------------------------------------
Any order entered by a member that is The greater of (i) $0.004 per
routed outside of the Nasdaq share executed or (ii) a pass-
Facilities and that does not attempt through of all applicable
to execute in the Nasdaq Facilities access fees charged by
prior to routing. electronic communications
networks that charge more than
$0.003 per share executed.
Any other order entered by a member
that is routed outside of the Nasdaq
Facilities:
Members with an average daily volume The greater of (i) $0.0028 per
through the Nasdaq Facilities in all share executed or (ii) a pass-
securities during the month of (i) through of all applicable
more than 30 million shares of access fees charged by
liquidity provided, and (ii) more than electronic communications
50 million shares of liquidity networks that charge more than
accessed and/or routed. $0.003 per share executed.
Other members.......................... The greater of (i) $0.0030 per
share executed or (ii) a pass-
through of all applicable
access fees charged by
electronic communications
networks that charge more than
$0.003 per share executed.
------------------------------------------------------------------------
Order Routing for Exchange-Traded Funds Not Listed On Nasdaq
------------------------------------------------------------------------
Order routed to the New York Stock See DOT fee schedule in Rule
Exchange (``NYSE'') through its DOT 7010(i)(6).
system.
Any other order entered by a member $0.004 per share executed.
that is routed outside of the Nasdaq
Facilities and that does not attempt
to execute in the Nasdaq Facilities
prior to routing.
Order routed to the American Stock $0.01 per share executed.
Exchange (``Amex'') after attempting
to execute in the Nasdaq Facilities.
Order routed through the Intermarket $0.0007 per share executed.
Trading System (``ITS'') after
attempting to execute in the Nasdaq
Facilities.
Order routed to venues other than the $0.003[5] per share executed.
NYSE and Amex after attempting to
execute in the Nasdaq Facilities.
------------------------------------------------------------------------
(2) For purposes of assessing Nasdaq Facilities fees and credits
hereunder, (A) a Discretionary Order that executes prior to being
displayed as a Quote/Order will always be deemed to be accessing
liquidity unless it is executed by (or receives delivery of) a
displayed Discretionary Order at a price in the discretionary price
range of the displayed Discretionary Order, and (B) a Discretionary
Order that executes after being displayed as a Quote/Order will always
be deemed to be providing liquidity, unless the displayed Discretionary
Order executes against (or is delivered to) a Quote/Order or Non-
Directed Order that has not been designated ``Immediate or Cancel,'' at
a price in its discretionary price range.
(3) Closing Cross.
------------------------------------------------------------------------
------------------------------------------------------------------------
Market-on-Close and Limit-on-Close $0.0005 per share executed.
orders executed in the Nasdaq Closing
Cross.
All other quotes and orders executed in No charge for execution.
the Nasdaq Closing Cross.
------------------------------------------------------------------------
(4) Opening Cross.
Members shall be assessed the following Nasdaq Market Center
execution fees for quotes and orders executed in the Nasdaq Opening
Cross:
------------------------------------------------------------------------
------------------------------------------------------------------------
Market-on-Open, Limit-on-Open, Good- $0.0005 per share executed for
till-Cancelled, Immediate-or-Cancel, the net number of buy and sell
and Day orders executed in the Nasdaq shares up to a maximum of
Opening Cross. $10,000 per firm per month.
All other quotes and orders executed in No charge for execution.
the Nasdaq Opening Cross.
------------------------------------------------------------------------
(5) Except as provided in paragraph (6), the following charges
shall apply to the use of the order execution and routing services of
the Nasdaq Facilities by members for securities subject to the
Consolidated Quotations Service and Consolidated Tape Association plans
other than Exchange-Traded Funds (``Covered Securities''):
[[Page 14762]]
------------------------------------------------------------------------
------------------------------------------------------------------------
Order Execution
------------------------------------------------------------------------
Order that accesses the Quote/Order of
a Nasdaq Facility market participant:
Charge to member entering order........ $0.0007 per share executed.
Credit to member providing liquidity:
Members with an average daily volume $0.0005 per share executed.
through the Nasdaq Facilities in
Covered Securities during the month of
more than 5 million shares of
liquidity accessed, provided, or
routed.
Other members.......................... No credit.
------------------------------------------------------------------------
Order Routing
------------------------------------------------------------------------
Order routed to Amex................... $0.01 per share executed.
Order routed through the ITS........... $0.0007 per share executed.
Order routed to NYSE................... See DOT fee schedule in Rule
7010(i)(6).
Order for NYSE-listed Covered Security
routed to venue other than the NYSED
$0.001 [5] per share executed.
Order for Covered Security listed on $0.003 [5] per share executed.
venue other than the NYSE and routed
to venue other than Amex.
------------------------------------------------------------------------
(6) The following classes shall apply to the use of the Nasdaq
Facilities by members for routing to the NYSE through its DOT system
for all securities, including Exchange-Traded Funds:
------------------------------------------------------------------------
------------------------------------------------------------------------
Order charged a fee by the NYSE $0.01 per share executed.
specialist.
Order that attempts to execute in the No charge.
Nasdaq Facilities prior to routing and
that is not charged a fee by the NYSE
specialist.
Order that does not attempt to execute
in the Nasdaq Facilities prior to
routing and that is not charged a fee
by the NYSE specialist:
Average daily shares of liquidity
routed through Nasdaq's DOT linkage by
the member during the month:
More than 30 million................... $0.0001 per share executed.
Between 2,000,001 and 30 million....... $0.0003 per share executed.
Between 250,001 and 2 million.......... $0.0005 per share executed.
Between 100,001 and 250,000............ $0.001 per share executed.
100,000 or less........................ $0.01 per share executed.
------------------------------------------------------------------------
(7) The fees applicable to non-members using Nasdaq's Brut and Inet
Facilities 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, SR-
NASD-2005-154, SR-NASD-2006-013, and SR-NASD-2006-023, 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, SR-NASD-2005-155,
SR-NASD-2006-014, and SR-NASD-2006-024.
(j) through (v) No Change.
(w) INET System Connectivity
(1) The following charges shall apply to telecommunication
protocols used to access Nasdaq's INET System:
Port Fees:
Connectivity to Harborside Financial Center and Secaucus Datacenters
$400 per month for each port pair, other than Multicast ITCH [reg]
data feed pairs, for which the fee is $1000 per month.
Internet Ports: An additional $200 per month for each Internet port
that requires additional bandwidth.
Connectivity to Chicago Datacenter
$800 per month for each port pair.
[All port fees, not including Internet Bandwidth surcharges, will
be waived for Subscribers that for a calendar month have an average
daily share volume for executed orders exceeding 30 million shares of
added liquidity.]
INET Terminal Fees:
Each ID is subject to a minimum commission fee of $50 per month
unless it executes a minimum of 100,000 shares.
Each ID receiving market data is subject to pass-through fees for
use of these services. Pricing for these services is determined by the
exchanges and/or market center.
Each ID that is given web access is subject to a $50 monthly fee.
Portal Fees:
Each ID is subject to a monthly user fee of $150.
Each ID receiving market data is subject to pass-through fees for
use of these services. Pricing for these services is determined by the
exchanges and/or market center.
(2) The INET connectivity fees applicable to non-members 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, 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 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 14763]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In order to encourage greater use of Nasdaq routing facilities,
Nasdaq is proposing to reduce its routing fees as follows:
(1) Nasdaq would reduce, from $0.0015 to $0.001, the fee per share
executed for routing orders in New York Stock Exchange (``NYSE'')
listed securities to venues other than the NYSE;
(2) Nasdaq would reduce, from $0.0035 to $0.003, the fee per share
executed for routing orders in securities listed on a venue other than
the NYSE and routed to venues other than the American Stock Exchange
(``AMEX'');
(3) Nasdaq would reduce, from $0.0035 to $0.003, the fee per share
executed for routing orders in Non-Nasdaq Exchange Traded Funds
(``ETFs'') to venues other than the NYSE or AMEX.
Finally, Nasdaq is proposing to eliminate the port fee waiver for
Nasdaq's INET facility subscribers that for a calendar month average
daily execution of orders in the INET system of in excess of 30 million
shares of added liquidity. Nasdaq states that this port fee waiver is
part of INET's legacy pricing structure and is inconsistent with
Nasdaq's integrated pricing structure in which no other system provides
such fee waivers.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\7\ in general, and with
Section 15A(b)(5) of the Act,\8\ 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 NASD operates or controls. In particular, Nasdaq
states that the proposal will reduce routing costs for market
participants and more closely unify Nasdaq pricing policies across all
of its systems.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3.
\8\ 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 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 \9\ and subparagraph (f)(2) of Rule 19b-4 \10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2006-031 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-2006-031. 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-2006-031 and should be submitted on or before April
13, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-4186 Filed 3-22-06; 8:45 am]
BILLING CODE 8010-01-P
