Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Establish an Annual Administrative Fee for Market Data Distributors That Are Recipients of Nasdaq Proprietary Data Products, 27762-27763 [E6-7256]

Download as PDF 27762 Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Notices information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CHX–2004–38 and should be submitted on or before June 2, 2006. V. Conclusion For the foregoing reasons, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,35 that the proposed rule change (SR–CHX–2004– 38) and Amendment Nos. 1 and 2 thereto are approved, and that Amendment Nos. 3 and 4 thereto are approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.36 Nancy M. Morris, Secretary. [FR Doc. E6–7257 Filed 5–11–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53770; File No. SR–NASD– 2006–030] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Establish an Annual Administrative Fee for Market Data Distributors That Are Recipients of Nasdaq Proprietary Data Products sroberts on PROD1PC70 with NOTICES May 8, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on February 27, 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 April 17, 2006. The Commission is publishing this notice to solicit comments on the proposed rule 35 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. 36 17 VerDate Aug<31>2005 16:54 May 11, 2006 Jkt 208001 change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to establish an annual administrative fee for market data distributors that are recipients of Nasdaq proprietary data products. The text of the proposed rule change is below. Proposed new language is in italics.3 7010 System Services (a)–(w) No change. (x) Nasdaq Annual Administrative Fee The Nasdaq Annual Administrative Fee shall be assessed to market data distributors that receive any proprietary Nasdaq data feed product. Each such distributor shall, on an annual basis, be assessed the higher of the applicable Nasdaq Annual Administrative Fees: Delayed Nasdaq distributor—$500. Real-Time Nasdaq distributor (includes delayed fee, if applicable)— $1,000. The Association may waive the foregoing fee for colleges and universities for devices used by students and professors in performing university or college research or classroom-related activities. * * * * * 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. 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 As market data administration becomes more automated, Nasdaq has strived to ensure that its systems lead the industry in ease of use and 3 Changes are marked to the rule text that appears in the electronic NASD Manual found at www.nasd.com. No pending rule filings would affect the text of this rule. Because of the nature of this rule, no conforming change will be made to the rules of The NASDAQ Stock Market LLC. See Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006). PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 effectiveness. In the past few years, Nasdaq has implemented a multitude of systems to improve vendor communication. This trend is likely to continue, as market data distributors demand greater automation of the process to subscribe to market data feeds, increased electronic access to information regarding their market data usage, and shorter processing times to approve requests for changes in service. To further Nasdaq’s proactive approach to improving market data administration, Nasdaq proposes to introduce an annual administrative fee for all distributors receiving proprietary Nasdaq data feed products. This fee will allow Nasdaq to recover the ongoing fixed market data administrative costs, such as the costs of establishing and maintaining new market data distributors, as well as the costs to maintain and improve the administrative tools distributors utilize to subscribe to and monitor their data products usage. Currently, Nasdaq market data distributors are not assessed an annual administrative fee for the use of proprietary Nasdaq data feed products.4 The amount of the new fee, which will be assessed on an annual basis, will vary based on whether a distributor uses Nasdaq data on a delayed or a real-time basis. A distributor that only receives delayed data will pay the Delayed Nasdaq Annual Administrative Fee of $500; a distributor that receives realtime data will pay the Real-Time Nasdaq Annual Administrative Fee of $1,000, and a distributor that receives both real-time and delayed data feeds will pay the Real-Time Nasdaq Annual Administrative Fee of $1,000. Consistent with the current practice of the American Stock Exchange,5 Nasdaq is proposing that accredited colleges and universities that can establish that they are using proprietary data for research and classroom-related activities may receive a waiver of the administrative fee. This fee waiver recognizes the high value that Nasdaq places on research and educational instruction at the university level. To be considered for an academic waiver, the university’s program sponsor should submit to Nasdaq a written request stating the name and description of the academic program, the company and contact name of the external distributor to provide the data, the number of devices with access to real-time data, an 4 Distributors pay an annual administrative fee regarding their usage of UTP data feed products. See NASD Rule 7010(l)(1). 5 See Amex Academic Waiver Policy at www.amex.com/amextrader. E:\FR\FM\12MYN1.SGM 12MYN1 Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Notices approximate number of students and faculty in the program, and a brief description of how market data will be used in the program. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 15A of the Act,6 in general and with Section 15A(b)(5) of the Act,7 in particular, in that the revised and updated fee schedule provides for the equitable allocation of reasonable charges among the persons distributing and purchasing Nasdaq market center data. Nasdaq believes the proposed fees will enable Nasdaq to provide a lower total cost of market data ownership, given the reduced network and processing expenses associated with receiving only the data actually needed. Nasdaq believes that facilitating more efficient redistribution of real-time market data will improve transparency and thereby benefit the investing public. 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. sroberts on PROD1PC70 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which Nasdaq consents, the Commission will: (A) By order approve such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. 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: 6 15 7 15 U.S.C. 78o–3. U.S.C. 78o–3(b)(5). VerDate Aug<31>2005 16:54 May 11, 2006 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 No. SR–NASD–2006–030 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASD–2006–030. 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 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–2006–030 and should be submitted on or before June 2, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–7256 Filed 5–11–06; 8:45 am] BILLING CODE 8010–01–P 8 17 Jkt 208001 PO 00000 CFR 200.30–3(a)(12). Frm 00103 Fmt 4703 Sfmt 4703 27763 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53769; File No. SR–NASD– 2006–041] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, and Amendment No. 1 thereto, To Eliminate From The Nasdaq Stock Market Inc.’s Corporate Organizational Documents Certain Series of Preferred Stock May 8, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 31, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’), through its subsidiary, The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’), filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by Nasdaq. On April 24, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change.3 Nasdaq filed this proposal pursuant to section 19(b)(3)(A) of the Act 4 and Rule 19b–4(f)(3) thereunder 5 as concerned solely with the administration of the self-regulatory organization, and, therefore, this proposal is effective immediately upon filing. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to proposal to eliminate from Nasdaq’s corporate organizational documents references to Series A Cumulative Preferred Stock, Series B Preferred Stock, and Series C Cumulative Preferred Stock, as there are no shares of any such series outstanding. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, Nasdaq made clarifying changes to the proposal and attached as Exhibit 5 to the filing a copy of the Certificate of Elimination of the Series A Cumulative Preferred Stock, Series B Preferred Stock and Series C Cumulative Preferred Stock of The Nasdaq Stock Market, Inc. 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(3). 2 17 E:\FR\FM\12MYN1.SGM 12MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 92 (Friday, May 12, 2006)]
[Notices]
[Pages 27762-27763]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7256]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53770; File No. SR-NASD-2006-030]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing of Proposed Rule Change and Amendment 
No. 1 Thereto To Establish an Annual Administrative Fee for Market Data 
Distributors That Are Recipients of Nasdaq Proprietary Data Products

May 8, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 27, 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 April 17, 
2006. 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.
---------------------------------------------------------------------------

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

    Nasdaq proposes to establish an annual administrative fee for 
market data distributors that are recipients of Nasdaq proprietary data 
products. The text of the proposed rule change is below. Proposed new 
language is in italics.\3\
---------------------------------------------------------------------------

    \3\ Changes are marked to the rule text that appears in the 
electronic NASD Manual found at www.nasd.com. No pending rule 
filings would affect the text of this rule. Because of the nature of 
this rule, no conforming change will be made to the rules of The 
NASDAQ Stock Market LLC. See Securities Exchange Act Release No. 
53128 (January 13, 2006), 71 FR 3550 (January 23, 2006).
---------------------------------------------------------------------------

7010 System Services

    (a)-(w) No change.

(x) Nasdaq Annual Administrative Fee

    The Nasdaq Annual Administrative Fee shall be assessed to market 
data distributors that receive any proprietary Nasdaq data feed 
product. Each such distributor shall, on an annual basis, be assessed 
the higher of the applicable Nasdaq Annual Administrative Fees:
    Delayed Nasdaq distributor--$500.
    Real-Time Nasdaq distributor (includes delayed fee, if 
applicable)--$1,000.
    The Association may waive the foregoing fee for colleges and 
universities for devices used by students and professors in performing 
university or college research or classroom-related activities.
* * * * *

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. 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
    As market data administration becomes more automated, Nasdaq has 
strived to ensure that its systems lead the industry in ease of use and 
effectiveness. In the past few years, Nasdaq has implemented a 
multitude of systems to improve vendor communication. This trend is 
likely to continue, as market data distributors demand greater 
automation of the process to subscribe to market data feeds, increased 
electronic access to information regarding their market data usage, and 
shorter processing times to approve requests for changes in service.
    To further Nasdaq's proactive approach to improving market data 
administration, Nasdaq proposes to introduce an annual administrative 
fee for all distributors receiving proprietary Nasdaq data feed 
products. This fee will allow Nasdaq to recover the ongoing fixed 
market data administrative costs, such as the costs of establishing and 
maintaining new market data distributors, as well as the costs to 
maintain and improve the administrative tools distributors utilize to 
subscribe to and monitor their data products usage.
    Currently, Nasdaq market data distributors are not assessed an 
annual administrative fee for the use of proprietary Nasdaq data feed 
products.\4\ The amount of the new fee, which will be assessed on an 
annual basis, will vary based on whether a distributor uses Nasdaq data 
on a delayed or a real-time basis. A distributor that only receives 
delayed data will pay the Delayed Nasdaq Annual Administrative Fee of 
$500; a distributor that receives real-time data will pay the Real-Time 
Nasdaq Annual Administrative Fee of $1,000, and a distributor that 
receives both real-time and delayed data feeds will pay the Real-Time 
Nasdaq Annual Administrative Fee of $1,000.
---------------------------------------------------------------------------

    \4\ Distributors pay an annual administrative fee regarding 
their usage of UTP data feed products. See NASD Rule 7010(l)(1).
---------------------------------------------------------------------------

    Consistent with the current practice of the American Stock 
Exchange,\5\ Nasdaq is proposing that accredited colleges and 
universities that can establish that they are using proprietary data 
for research and classroom-related activities may receive a waiver of 
the administrative fee. This fee waiver recognizes the high value that 
Nasdaq places on research and educational instruction at the university 
level. To be considered for an academic waiver, the university's 
program sponsor should submit to Nasdaq a written request stating the 
name and description of the academic program, the company and contact 
name of the external distributor to provide the data, the number of 
devices with access to real-time data, an

[[Page 27763]]

approximate number of students and faculty in the program, and a brief 
description of how market data will be used in the program.
---------------------------------------------------------------------------

    \5\ See Amex Academic Waiver Policy at www.amex.com/amextrader.
---------------------------------------------------------------------------

2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act,\6\ in general and with 
Section 15A(b)(5) of the Act,\7\ in particular, in that the revised and 
updated fee schedule provides for the equitable allocation of 
reasonable charges among the persons distributing and purchasing Nasdaq 
market center data. Nasdaq believes the proposed fees will enable 
Nasdaq to provide a lower total cost of market data ownership, given 
the reduced network and processing expenses associated with receiving 
only the data actually needed. Nasdaq believes that facilitating more 
efficient redistribution of real-time market data will improve 
transparency and thereby benefit the investing public.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78o-3.
    \7\ 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which Nasdaq consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 No. SR-NASD-2006-030 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASD-2006-030. 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 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-2006-030 
and should be submitted on or before June 2, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-7256 Filed 5-11-06; 8:45 am]
BILLING CODE 8010-01-P

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