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
<![CDATA[
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 https://
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 (https://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 (https://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 https://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 (https://
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 (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 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\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-4515 Filed 3-28-06; 8:45 am]
BILLING CODE 8010-01-P
