Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Establishing CTCI Station-Based Pricing for Members, 15784-15786 [E6-4515]

Download as PDF 15784 Federal Register / Vol. 71, No. 60 / Wednesday, March 29, 2006 / Notices manner. FICC’s proposed rule change also includes revised risk management measures (e.g., revised clearing fund calculation and margin offsets) to address potential risk resulting from the revised repo substitution rules. As such, FICC’s proposed rule change also should result in FICC being able to safeguard securities and funds which are in its possession and control or for which it is responsible. IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular section 17A of the Act and the rules and regulations thereunder. It is therefore ordered, pursuant to section 19(b)(2) of the Act,17 that the proposed rule change (File No. SR– FICC–2005–18) be and hereby is approved. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to modify fees for Nasdaq access through the Computer to Computer Interface (‘‘CTCI’’) protocol.6 The text of the proposed rule change is below. Proposed new language is in italics; proposed deletions are in brackets.7 For the Commission by the Division of Market Regulation, pursuant to delegated authority.18 Nancy M. Morris, Secretary. [FR Doc. E6–4527 Filed 3–28–06; 8:45 am] Rule 7010. System Services (a)–(e) No Change (f)(1)–(2) No Change (3) [Computer to computer interface (CTCI) and] Financial Information Exchange (FIX) BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Options [Release No. 34–53536; File No. SR–NASD– 2006–026] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Establishing CTCI StationBased Pricing for Members hsrobinson on PROD1PC68 with NOTICES March 21, 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 February 22, 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 filed Amendment No. 1 to the proposed rule change on March 10, 2006.3 Nasdaq 17 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 For purposes of calculating the 60-day abrogation period, the Commission considers the 18 17 VerDate Aug<31>2005 15:39 Mar 28, 2006 Jkt 208001 has designated this proposal as establishing or changing a due, fee, or other charge of a self-regulatory organization, pursuant to section 19(b)(3)(A)(ii) of the Act,4 and Rule 19b–4(f)(2) thereunder,5 which renders the proposed rule change 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. Price [Option 1: Dual 56kb lines (one for redundancy) single hub and router, and optional single FIX port.]. [Option 2: Dual 56kb lines (one for redundancy), dual hubs (one for redundancy), and dual routers (one for redundancy), and optional single FIX port.]. [$1275/month]. [$1600/month]. period to have commenced on March 10, 2006, the date Nasdaq filed Amendment No. 1. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). 6 The instant proposed rule change establishes fees for NASD members. The identical fees for nonmemebers were established in SR–NASD–2006– 027. See Securities Exchange Act Release No. 53535 (March 21, 2006). 7 Changes are marked to the rule text that appears in the electronic NASD Manual found at http:// www.nasd.com. Prior to the date when The NASDAQ Stock Market LLC (‘‘NASDAQ LLC’’) commences operations, NASDAQ LLC will file a confirming change to the rules of NASDAQ LLC approved in Securites Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10–131). PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 Options Price [Option 3: Dual T1 lines (one for redundancy), dual hubs (one for redundancy), dual routers (one for redundancy), and optional single FIX port. Includes base bandwidth of 128kb.]. FIX Trading Port (NMC and Brut). FIX Port for Services Other than Trading. Dedicated FIX server Dedicated FIX server (Brut). [$8000/month (CTCI or CTCI/FIX lines) $4000/month (FIXonly lines)]. [Option 1, 2, or 3 with Message Queue software enhancement]. [Disaster Recovery Option: Single 56kb line with single hub and router and optional single FIX port. (For remote disaster recovery sites only.)]. [Bandwidth Enhancement Fee (for T1 subscribers only)]. [Installation Fee] ........ [Relocation Fee (for the movement of TCP/IP-capable lines within a single location)]. $400/port/month. $500/port/month. $1,000/server/month. $3,000/server/month; initial term of not less than 12 months is required. [Fee for Option 1, 2, or 3 (including any Bandwidth Enhancement Fee) plus 20%]. [$975/month]. [$600/month per 64kb increase above 128kb T1 base]. [$2000 per site for dual hubs and routers $1000 per site for single hub and router]. [$1700 per relocation]. [FIX connectivity through Options 1, 2, or 3 or the Disaster Recovery Option will not be available to new subscribers that are (i) NASD members after January 1, 2004, or (ii) not NASD members after the effective date of SR–NASD–2003– 196.] (4) Computer to Computer Interface (CTCI). The fees in the table below are applicable to NASD members that have transitioned off of Nasdaq-supported circuits, and as of July 1, 2006, also apply to NASD members that have not transitioned. Stations Fee component 1st Station ................. Each Additional Station. E:\FR\FM\29MRN1.SGM 29MRN1 Fee $200/Station/month $600/Station/month Federal Register / Vol. 71, No. 60 / Wednesday, March 29, 2006 / Notices The bandwidth-based fees in the table below apply to NASD members that have not transitioned off of Nasdaqsupported circuits, and, pending approval of SR–NASD–2006–027, to non-members as indicated. Bandwidth Fee component Single 56kb line with single hub and router (for remote disaster recovery sites only). Option 1 Dual 56kb lines (one for redundancy) and single hub and router. Fee $900/month for members $975/month for nonmembers $1,000/month for members $1,275/month for nonmembers hsrobinson on PROD1PC68 with NOTICES Option 2 Dual 56kb lines (one for re$1,200/month dundancy), dual hubs (one for memfor redundancy), and dual bers router (one for redundancy). $1,600/month for nonmembers Option 3 Dual T1 lines (one for redun- $2,500/month dancy), dual hubs (one for for memredundancy), and dual bers routers (one for redun$8,000/month dancy). Includes base for nonbandwidth of 128kb. members Bandwidth Enhancement Fee (for T1 subscribers only) Per 64kb increase above $200/month 128kb T1 base. for members $600/month for nonmembers Option 1, 2, or 3 with MesFee for Option sage Queue software en1, 2, or 3 hancement. (including any Bandwidth Enhancement Fee) plus 20% Installation Fee ...................... $2,000 per site for dual hubs and routers $1,000 per site for single hub and router Relocation Fee (for the $1,700 per removement of TCP/IP-capalocation ble lines within a single location). [(4)] (5) New Nasdaq Workstation. (g)–(w) No Change. * * * * * VerDate Aug<31>2005 15:39 Mar 28, 2006 Jkt 208001 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 is modifying fees for member access to Nasdaq through the CTCI protocol. Through the implementation of FIX and QIX and the sunset of the SDP/API, Nasdaq has continued towards its goal of allowing firms and service bureaus to choose their own circuit connectivity provider for access to Nasdaq’s products and services. CTCI is the only remaining Nasdaq protocol that requires the firm to choose a Nasdaq-provided circuit for connectivity. In order for Nasdaq to complete its strategy, Nasdaq seeks to modify the CTCI pricing structure in order to transition from circuit-based fee components based on bandwidth to ‘‘Station’’ fee components that are more synonymous with logical access ports. CTCI Stations are logical channels used to manage the flow of data to and from the firm user. Stations are synonymous with the logical access ports used for FIX and QIX as they have the same characteristics, including a one-to-one relationship between the firm and Station and throughput limits. For this reason, Nasdaq chose a Stationbased fee component for its new pricing. In order to facilitate the transition, Nasdaq seeks to modify the current bandwidth based fees to Nasdaq’s circuit cost imposed by its carrier plus an administration cost. Firms that decide not to transition off of Nasdaq supported circuits will pay the new bandwidth-based fees in addition to Station fees. Nasdaq expects almost all firms to transition to new circuit connections but that the transition date will be different for each firm. As a result, Nasdaq intends to implement the new pricing structure once a firm has transitioned to a different circuit connection. However, the new pricing will be applied to all firms on July 1, PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 15785 2006 regardless of the firm’s transition plan. Thus, a firm that transitions will pay only the station fee. A firm that does not transition will pay only the bandwidth fee prior to July 1, but will pay both the station and the bandwidth fee between July 1 and the date when it does transition. 2. Statutory Basis Nasdaq believes the proposed rule change is consistent with the provisions of section 15A of the Act,8 in general, and sections 15A(b)(5) 9 of the Act, 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. The proposed rule change will modify the current CTCI pricing structure in order to transition from circuit-based fee components based on bandwidth to ‘‘Station’’ fee components that are more synonymous with logical access ports. 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, as amended. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act 10 and subparagraph (f)(2) of Rule 19b–4 thereunder,11 because it establishes or changes a due, fee, or other charge imposed by NASD. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, 8 15 U.S.C. 78o–3. U.S.C. 78o–3(b)(5). 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b–4(f)(2). 9 15 E:\FR\FM\29MRN1.SGM 29MRN1 15786 Federal Register / Vol. 71, No. 60 / Wednesday, March 29, 2006 / Notices 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2006–026 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53538; File No. SR–NASD– 2006–037] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Extending the Effective Date of the Uniform Branch Office Definition and Related Interpretive Material and Extending the Transition Deadline for Compliance With Form BR and Form U4 Filing Requirements March 22, 2006. hsrobinson on PROD1PC68 with NOTICES 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 14, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed All submissions should refer to File with the Securities and Exchange Number NASD–2006–026. This file Commission (‘‘SEC’’ or ‘‘Commission’’) number should be included on the the proposed rule change as described subject line if e-mail is used. To help the in Items I, II, and III below, which Items Commission process and review your have been prepared by NASD. NASD comments more efficiently, please use has designated the proposed rule change only one method. The Commission will as constituting a stated policy, practice, post all comments on the Commission’s or interpretation with respect to the Internet Web site (http://www.sec.gov/ meaning, administration, or rules/sro.shtml). Copies of the enforcement of an existing rule under submission, all subsequent section 19(b)(3)(A)(i) of the Act 3 and amendments, all written statements Rule 19b–4(f)(1) thereunder,4 which with respect to the proposed rule renders the proposal effective upon change that are filed with the filing with the Commission. The Commission, and all written Commission is publishing this notice to solicit comments on the proposed rule communications relating to the change from interested persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s those that may be withheld from the Statement of the Terms of Substance of public in accordance with the the Proposed Rule Change provisions of 5 U.S.C. 552, will be NASD is filing with the Commission available for inspection and copying in an extension of the effective date of the Commission’s Public Reference amendments to NASD Rule Room. Copies of the filing also will be 3010(g)(2)(A) which defines the term available for inspection and copying at ‘‘branch office,’’ and related IM–3010–1 the principal offices of NASD. All which provides guidance on factors to comments received will be posted be considered by members when without change; the Commission does conducting internal inspections of not edit personal identifying offices (‘‘Uniform Branch Office information from submissions. You Definition’’), from May 1, 2006 to July should submit only information that 3, 2006.5 Further, NASD is extending you wish to make available publicly. All from May 1, 2006 to July 3, 2006 the submissions should refer to File transition deadline for compliance with Number NASD–2006–026 and should be Form BR (Uniform Branch Office submitted on or before April 19, 2006. Registration Form) and Form U4 (Uniform Application for Securities For the Commission, by the Division of Industry Registration or Transfer) filing Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E6–4515 Filed 3–28–06; 8:45 am] BILLING CODE 8010–01–P 12 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:39 Mar 28, 2006 Jkt 208001 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). 4 17 CFR 240.19b–4(f)(1). 5 See Securities Exchange Act Release No. 52403 (September 9, 2005), 70 FR 54782 (September 16, 2005) (SR–NASD–2003–104) (‘‘Uniform Branch Office Definition Approval Order’’). 2 17 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 requirements for firms with branch offices in existence before the close of business on October 14, 2005.6 NASD is not proposing any textual changes to NASD’s rules. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NASD 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. NASD 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 September 9, 2005, the SEC approved: (1) amendments to NASD Rule 3010(g)(2) which defines the term ‘‘branch office’’ and (2) the adoption of IM–3010–1 to provide interpretive guidance on factors to be considered by members in conducting internal inspections of offices.7 In the rule filing, NASD stated that the effective date of the Uniform Branch Office Definition would follow deployment of the new branch office registration system on the Central Registration Depository (CRD), and that members would have sufficient time to transition to the new Form BR (Uniform Branch Office Registration Form) and associated filing protocols.8 Following SEC approval of the Uniform Branch Office Definition, NASD announced in a Notice to Members that the effective date of the amendments would be May 1, 2006.9 In addition, on September 30, 2005, the SEC approved the Form BR and conforming and technical changes to Form U4 (Uniform Application for Securities Industry Registration or Transfer) and Form U5 (Uniform Termination Notice for Securities Industry Registration).10 In the rule 6 See Securities Exchange Act Release No. 52544 (September 30, 2005), 70 FR 58764 (October 7, 2005) (SR–NASD–2005–030) (‘‘Form BR Approval Order’’). 7 See Uniform Branch Office Definition Approval Order. 8 See Form BR Approval Order. See also NASD Notice to Members 05–66 (October 2005). 9 See NASD Notice to Members 05–67 (October 2005). 10 See Form BR Approval Order. See also NASD Notice to Members 05–66 (October 2005). E:\FR\FM\29MRN1.SGM 29MRN1

Agencies

[Federal Register Volume 71, Number 60 (Wednesday, March 29, 2006)]
[Notices]
[Pages 15784-15786]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4515]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53536; File No. SR-NASD-2006-026]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change and Amendment No. 1 Thereto Establishing CTCI Station-Based 
Pricing for Members

March 21, 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 February 22, 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 filed 
Amendment No. 1 to the proposed rule change on March 10, 2006.\3\ 
Nasdaq has designated this proposal as establishing or changing a due, 
fee, or other charge of a self-regulatory organization, pursuant to 
section 19(b)(3)(A)(ii) of the Act,\4\ and Rule 19b-4(f)(2) 
thereunder,\5\ which renders the proposed rule change 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the period to have commenced on March 10, 
2006, the date Nasdaq filed Amendment No. 1.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    Nasdaq proposes to modify fees for Nasdaq access through the 
Computer to Computer Interface (``CTCI'') protocol.\6\ The text of the 
proposed rule change is below. Proposed new language is in italics; 
proposed deletions are in brackets.\7\
---------------------------------------------------------------------------

    \6\ The instant proposed rule change establishes fees for NASD 
members. The identical fees for non-memebers were established in SR-
NASD-2006-027. See Securities Exchange Act Release No. 53535 (March 
21, 2006).
    \7\ Changes are marked to the rule text that appears in the 
electronic NASD Manual found at http://www.nasd.com. Prior to the 
date when The NASDAQ Stock Market LLC (``NASDAQ LLC'') commences 
operations, NASDAQ LLC will file a confirming change to the rules of 
NASDAQ LLC approved in Securites Exchange Act Release No. 53128 
(January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10-131).
---------------------------------------------------------------------------

Rule 7010. System Services

    (a)-(e) No Change
    (f)(1)-(2) No Change
    (3) [Computer to computer interface (CTCI) and] Financial 
Information Exchange (FIX)

------------------------------------------------------------------------
                  Options                               Price
------------------------------------------------------------------------
[Option 1: Dual 56kb lines (one for         [$1275/month].
 redundancy) single hub and router, and
 optional single FIX port.].
[Option 2: Dual 56kb lines (one for         [$1600/month].
 redundancy), dual hubs (one for
 redundancy), and dual routers (one for
 redundancy), and optional single FIX
 port.].
[Option 3: Dual T1 lines (one for           [$8000/month (CTCI or CTCI/
 redundancy), dual hubs (one for             FIX lines) $4000/month (FIX-
 redundancy), dual routers (one for          only lines)].
 redundancy), and optional single FIX
 port. Includes base bandwidth of 128kb.].
FIX Trading Port (NMC and Brut)...........  $400/port/month.
FIX Port for Services Other than Trading..  $500/port/month.
Dedicated FIX server......................  $1,000/server/month.
Dedicated FIX server (Brut)...............  $3,000/server/month; initial
                                             term of not less than 12
                                             months is required.
[Option 1, 2, or 3 with Message Queue       [Fee for Option 1, 2, or 3
 software enhancement].                      (including any Bandwidth
                                             Enhancement Fee) plus 20%].
[Disaster Recovery Option: Single 56kb      [$975/month].
 line with single hub and router and
 optional single FIX port. (For remote
 disaster recovery sites only.)].
[Bandwidth Enhancement Fee (for T1          [$600/month per 64kb
 subscribers only)].                         increase above 128kb T1
                                             base].
[Installation Fee]........................  [$2000 per site for dual
                                             hubs and routers
                                            $1000 per site for single
                                             hub and router].
[Relocation Fee (for the movement of TCP/   [$1700 per relocation].
 IP-capable lines within a single
 location)].
------------------------------------------------------------------------

    [FIX connectivity through Options 1, 2, or 3 or the Disaster 
Recovery Option will not be available to new subscribers that are (i) 
NASD members after January 1, 2004, or (ii) not NASD members after the 
effective date of SR-NASD-2003-196.]
    (4) Computer to Computer Interface (CTCI).
    The fees in the table below are applicable to NASD members that 
have transitioned off of Nasdaq-supported circuits, and as of July 1, 
2006, also apply to NASD members that have not transitioned.

                                Stations
------------------------------------------------------------------------
               Fee component                             Fee
------------------------------------------------------------------------
1st Station...............................  $200/Station/month
Each Additional Station...................  $600/Station/month
------------------------------------------------------------------------


[[Page 15785]]

    The bandwidth-based fees in the table below apply to NASD members 
that have not transitioned off of Nasdaq-supported circuits, and, 
pending approval of SR-NASD-2006-027, to non-members as indicated.

                                Bandwidth
------------------------------------------------------------------------
               Fee component                             Fee
------------------------------------------------------------------------
Single 56kb line with single hub and        $900/month for members
 router (for remote disaster recovery       $975/month for non-members
 sites only).
                                Option 1
Dual 56kb lines (one for redundancy) and    $1,000/month for members
 single hub and router.                     $1,275/month for non-members
 
                                Option 2
Dual 56kb lines (one for redundancy), dual  $1,200/month for members
 hubs (one for redundancy), and dual        $1,600/month for non-members
 router (one for redundancy).
                                Option 3
Dual T1 lines (one for redundancy), dual    $2,500/month for members
 hubs (one for redundancy), and dual        $8,000/month for non-members
 routers (one for redundancy). Includes
 base bandwidth of 128kb.
          Bandwidth Enhancement Fee (for T1 subscribers only)
Per 64kb increase above 128kb T1 base.....  $200/month for members
                                            $600/month for non-members
Option 1, 2, or 3 with Message Queue        Fee for Option 1, 2, or 3
 software enhancement.                       (including any Bandwidth
                                            Enhancement Fee) plus 20%
Installation Fee..........................  $2,000 per site for dual
                                             hubs and routers
                                            $1,000 per site for single
                                             hub and router
Relocation Fee (for the movement of TCP/IP- $1,700 per relocation
 capable lines within a single location).
------------------------------------------------------------------------

    [(4)] (5) New Nasdaq Workstation.
    (g)-(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 is modifying fees for member access to Nasdaq through the 
CTCI protocol. Through the implementation of FIX and QIX and the sunset 
of the SDP/API, Nasdaq has continued towards its goal of allowing firms 
and service bureaus to choose their own circuit connectivity provider 
for access to Nasdaq's products and services. CTCI is the only 
remaining Nasdaq protocol that requires the firm to choose a Nasdaq-
provided circuit for connectivity. In order for Nasdaq to complete its 
strategy, Nasdaq seeks to modify the CTCI pricing structure in order to 
transition from circuit-based fee components based on bandwidth to 
``Station'' fee components that are more synonymous with logical access 
ports.
    CTCI Stations are logical channels used to manage the flow of data 
to and from the firm user. Stations are synonymous with the logical 
access ports used for FIX and QIX as they have the same 
characteristics, including a one-to-one relationship between the firm 
and Station and throughput limits. For this reason, Nasdaq chose a 
Station-based fee component for its new pricing. In order to facilitate 
the transition, Nasdaq seeks to modify the current bandwidth based fees 
to Nasdaq's circuit cost imposed by its carrier plus an administration 
cost. Firms that decide not to transition off of Nasdaq supported 
circuits will pay the new bandwidth-based fees in addition to Station 
fees.
    Nasdaq expects almost all firms to transition to new circuit 
connections but that the transition date will be different for each 
firm. As a result, Nasdaq intends to implement the new pricing 
structure once a firm has transitioned to a different circuit 
connection. However, the new pricing will be applied to all firms on 
July 1, 2006 regardless of the firm's transition plan. Thus, a firm 
that transitions will pay only the station fee. A firm that does not 
transition will pay only the bandwidth fee prior to July 1, but will 
pay both the station and the bandwidth fee between July 1 and the date 
when it does transition.
2. Statutory Basis
    Nasdaq believes the proposed rule change is consistent with the 
provisions of section 15A of the Act,\8\ in general, and sections 
15A(b)(5) \9\ of the Act, 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. The proposed rule change will 
modify the current CTCI pricing structure in order to transition from 
circuit-based fee components based on bandwidth to ``Station'' fee 
components that are more synonymous with logical access ports.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3.
    \9\ 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, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

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

    The proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\11\ because it establishes or changes a due, fee, or other 
charge imposed by NASD. At any time within 60 days of the filing of the 
proposed rule change, the Commission may summarily abrogate such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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,

[[Page 15786]]

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASD-2006-026 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 NASD-2006-026. 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 (http://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 the filing 
also will be available for inspection and copying at the principal 
offices of 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 NASD-
2006-026 and should be submitted on or before April 19, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-4515 Filed 3-28-06; 8:45 am]
BILLING CODE 8010-01-P