Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by National Association of Securities Dealers, Inc. To Modify the Fees for Trading and Compliance Data and the Data Package Available to NASD Member Firms via NasdaqTrader.com, 36143-36145 [E6-9936]
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Federal Register / Vol. 71, No. 121 / Friday, June 23, 2006 / Notices
general, to protect investors and the
public interest.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 7 and Rule
19b 4(f)(6) thereunder.8
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,
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–2006–056 on the
subject line.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Nancy M. Morris,
Secretary.
[FR Doc. E6–9929 Filed 6–22–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54002; File No. SR–NASD–
2006–072]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by National
Association of Securities Dealers, Inc.
To Modify the Fees for Trading and
Compliance Data and the Data
Package Available to NASD Member
Firms via NasdaqTrader.com
June 16, 2006.
Paper Comments
jlentini on PROD1PC65 with NOTICES
All submissions should refer to File
Number SR–NASD–2006–056. 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 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 the File
Number SR–NASD–2006–056 and
should be submitted on or before July
14, 2006.
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
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 June 5,
2006, the National Association of
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 15
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6).
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17:22 Jun 22, 2006
1 15
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36143
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.
Pursuant to section 19(b)(3)(A)(ii) of the
Act,3 and Rule 19b–4(f)(2) thereunder,4
Nasdaq has designated this proposal as
establishing or changing a due, fee, or
other charge, 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 from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq proposes to modify the fees
for trading and compliance data
available to NASD member firms via
NasdaqTrader.com, as well as to update
the information that the Nasdaq Trading
and Compliance Data Package (‘‘Data
Package’’) includes.5 Nasdaq will
implement the new fees on July 1, 2006.
The text of the proposed rule change
is below. Proposed new language is in
italics; proposed deletions are in
brackets.6
Rule 7010. System Services
(a)–(m) No Change
(n) NasdaqTrader.com Trading and
Compliance Data Package Fee
The charge to be paid by an NASD
Member Firm for each entitled user
receiving Nasdaq Trading and
Compliance Data Package via
NasdaqTrader.com is $130 [$100] per
month (monthly maximum of 25
3 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 March 31, 2005 was the last day that customers
had access to the Daily Share Volume Report.
Nasdaq notified customers via email on March 14,
2005, and posted a notice simultaneously on the
NasdaqTrader.com Web site, regarding the removal
of the Daily Share Volume Report from the Data
Package. In addition to having no customer demand
for the Daily Share Volume Report, Nasdaq received
no complaints nor any customer inquiries before or
after its removal from the Data Package. E-mail from
Jonathan F. Cayne, Associate General Counsel,
Nasdaq, to Joseph Morra, Special Counsel,
Commission, dated June 14, 2006. The Commission
notes that Nasdaq should have filed a proposed rule
change at the time it decided to remove the Daily
Share Volume Report from the Data Package.
6 Changes are marked to the rule text that appears
in the electronic NASD Manual found at https://
www.nasd.com. Prior to the date when The
NASDAQ Stock Market LLC (‘‘NASDAQ LLC’’)
commences operations, NASDAQ LLC will file a
conforming change to the rules of NASDAQ LLC
approved in Securities Exchange Act Release No.
53128 (January 13, 2006), 71 FR 3550 (January 23,
2006) (File No. 10–131).
4 17
E:\FR\FM\23JNN1.SGM
23JNN1
36144
Federal Register / Vol. 71, No. 121 / Friday, June 23, 2006 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
historical trading data such as a market
maker’s quote updates for a security on
a specified date. Due to the lack of
customer demand, Nasdaq removed the
Daily Share Volume Report from the
Data Package in March 2005.7
Use of this service is voluntary and
NASD member firms have the option of
subscribing to two different levels of the
Data Package. The ‘‘basic’’ level, which
currently has a fee of $100 per month,
allows access to a maximum of 25
Historical Research Reports per month.
The ‘‘premium’’ level, which currently
has a fee of $130 per month, allows
access to a maximum of 100 Historical
Research Reports per month. These fees
have not increased since October 2003,
even though several enhancements have
been made since that time. Some of
these enhancements include: (1) New
OATS Compliance Report Cards; and (2)
new historical research reports (e.g.,
Time and Sales with Inside Quotes and
NASDAQ Market Center Activity
Reports for Other Exchange-Listed
Securities).
In order to help cover the costs
associated with the maintenance of the
Data Package service, as well as the
implementation of additional
enhancements to the service in the near
future, Nasdaq proposes to increase the
subscription fee for the service.
Specifically, Nasdaq proposes to
increase the subscription fee for the
‘‘basic’’ level from $100 to $130 per
month, and increase the fee for the
‘‘premium’’ level from $130 to $160 per
month. These fee increases will
commence on July 1, 2006.
1. Purpose
2. Statutory Basis
Nasdaq proposes to modify the fees
for trading and compliance data
available to NASD member firms via
NasdaqTrader.com, as well as to update
the information that is included in the
Data Package. NasdaqTrader.com allows
NASD member firms to obtain data
regarding their own trading volume in
securities in which they report volume,
as well as information concerning their
compliance with NASD rules.
Specifically, NASD member firms that
subscribe to the Data Package can obtain
the following reports: (1) Monthly
Compliance Report Cards, which
outline the firm’s own compliance with
various NASD rules; (2) Monthly
Summaries, which provide monthly
trading volume statistics for the top 50
market participants broken down by
industry sector, security or type of
trading; and (3) Historical Research
Reports, which provide a variety of
Nasdaq believes that the proposed
rule change is consistent with the
provisions of section 15A of the Act,8 in
general and with section 15A(b)(5) of
the Act,9 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.
Specifically, use of the Data Package
service is voluntary and the
subscription fees will be imposed on all
member firms equally based on the level
of service selected. In addition, the
increase in fees will help cover the costs
associated with maintaining and
enhancing the Data Package service.
Historical Research Reports) or $160
[$130] per month (monthly maximum of
100 Historical Research Reports). The
Nasdaq Trading and Compliance Data
Package includes:
[(1) Daily Share Volume Report for a
Broker/Dealer (Member Firm’s
information only)]
(1) [(2)] Monthly Compliance Report
Cards (Member Firm’s information
only).
(2) [(3)] Monthly Summaries.
(3) [(4)] Historical Research Reports.
[(i) Market Maker Price Movement
Report].
[(ii) Equity Trade Journal (Member
Firm’s information only)].
The Association may modify the
contents of the Nasdaq Trading and
Compliance Data Package from time to
time based on subscriber interest.
(o)–(w) No Change
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
jlentini on PROD1PC65 with NOTICES
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.
VerDate Aug<31>2005
17:22 Jun 22, 2006
Jkt 208001
footnote 5 supra.
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 member 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,
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–2006–072 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–2006–072. 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
7 See
8 15
PO 00000
Frm 00092
Fmt 4703
10 15
11 17
Sfmt 4703
E:\FR\FM\23JNN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
23JNN1
Federal Register / Vol. 71, No. 121 / Friday, June 23, 2006 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–9936 Filed 6–22–06; 8:45 am]
BILLING CODE 8010–01–P
Nasdaq proprietary data products.
Nasdaq filed Amendment No. 1 to the
proposed rule change on April 17, 2006.
The proposed rule change, as modified
by Amendment No. 1, was published for
notice and comment in the Federal
Register on May 12, 2006.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change, as amended.
The Commission finds that the
proposed rule change is consistent with
Section 15A of the Act 4 and the rules
and regulations thereunder.
Specifically, the Commission finds the
proposal to be consistent with Section
15A(b)(5) of the Act,5 in that it provides
for the equitable allocation of reasonable
fees among persons distributing and
purchasing Nasdaq proprietary data
products. The Commission believes the
fees are reasonably tailored to allow
Nasdaq to recover the fixed market data
administrative costs, as well as the costs
of maintaining and improving the
administrative tools distributors use to
subscribe to and monitor their data
products usage.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,6 that the
proposed rule change (SR–NASD–2006–
030), be, and it hereby is, approved.
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange filed
Amendments No. 1 3 and 2 4 to the
proposed rule change on June 6, 2006
and June 15, 2006, respectively. The
Commission is publishing this notice, as
amended, to solicit comments on the
proposed rule change from interested
persons.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
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–2006–072 and should be
submitted on or before July 14, 2006.
In its filing with the Commission, the
Exchange 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. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
Nancy M. Morris,
Secretary.
[FR Doc. E6–9938 Filed 6–22–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
BILLING CODE 8010–01–P
[Release No. 34–54005; File No. SR–NASD–
2006–030]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving
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
jlentini on PROD1PC65 with NOTICES
June 16, 2006.
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’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to establish an annual
administrative fee for market data
distributors that are recipients of
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
17:22 Jun 22, 2006
Jkt 208001
36145
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53995; File No. SR–
NYSEArca–2006–13]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change and Amendments No. 1
and 2 Thereto Establishing the OX
Trading Platform
June 15, 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 May 2,
2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
3 See
Securities Exchange Act Release No. 53770
(May 8, 2006), 71 FR 27762.
4 15 U.S.C. 78o–3.
5 15 U.S.C. 78o–3(b)(5).
6 15 U.S.C. 78s(b)(2).
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE Arca proposes to amend its
rules governing the trading of listed
options on NYSE Arca. With this filing,
the Exchange proposes to adopt new
rules for the implementation of a new
trading platform for options, OX.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.archipelago.com, at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
A. Summary and Purpose of the Rule
Changes Related to the Implementation
of OX
NYSE Arca proposes to establish rules
for OX, a fully automated trading system
for standardized equity options
intended to replace NYSE Arca’s current
options trading platform, PCX Plus.5 OX
3 Amendment No. 1, which replaced and
superseded the original filing in its entirety, is
incorporated in this notice.
4 Amendment No. 2 clarified the circumstances
under which orders received by OX would be
routed away using Linkage or Archipelago
Securities. Amendment No. 2 also made minor
changes to the proposed rule text. Amendment No.
2 is incorporated in this notice.
5 See NYSE Arca Rule 6.90.
E:\FR\FM\23JNN1.SGM
23JNN1
]]>Agencies
[Federal Register Volume 71, Number 121 (Friday, June 23, 2006)]
[Notices]
[Pages 36143-36145]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9936]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54002; File No. SR-NASD-2006-072]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc. To Modify the Fees for Trading and Compliance
Data and the Data Package Available to NASD Member Firms via
NasdaqTrader.com
June 16, 2006.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 5, 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. Pursuant to
section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2)
thereunder,\4\ Nasdaq has designated this proposal as establishing or
changing a due, fee, or other charge, 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
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Nasdaq proposes to modify the fees for trading and compliance data
available to NASD member firms via NasdaqTrader.com, as well as to
update the information that the Nasdaq Trading and Compliance Data
Package (``Data Package'') includes.\5\ Nasdaq will implement the new
fees on July 1, 2006.
---------------------------------------------------------------------------
\5\ March 31, 2005 was the last day that customers had access to
the Daily Share Volume Report. Nasdaq notified customers via email
on March 14, 2005, and posted a notice simultaneously on the
NasdaqTrader.com Web site, regarding the removal of the Daily Share
Volume Report from the Data Package. In addition to having no
customer demand for the Daily Share Volume Report, Nasdaq received
no complaints nor any customer inquiries before or after its removal
from the Data Package. E-mail from Jonathan F. Cayne, Associate
General Counsel, Nasdaq, to Joseph Morra, Special Counsel,
Commission, dated June 14, 2006. The Commission notes that Nasdaq
should have filed a proposed rule change at the time it decided to
remove the Daily Share Volume Report from the Data Package.
---------------------------------------------------------------------------
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in brackets.\6\
---------------------------------------------------------------------------
\6\ Changes are marked to the rule text that appears in the
electronic NASD Manual found at https://www.nasd.com. Prior to the
date when The NASDAQ Stock Market LLC (``NASDAQ LLC'') commences
operations, NASDAQ LLC will file a conforming change to the rules of
NASDAQ LLC approved in Securities Exchange Act Release No. 53128
(January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10-131).
---------------------------------------------------------------------------
Rule 7010. System Services
(a)-(m) No Change
(n) NasdaqTrader.com Trading and Compliance Data Package Fee
The charge to be paid by an NASD Member Firm for each entitled user
receiving Nasdaq Trading and Compliance Data Package via
NasdaqTrader.com is $130 [$100] per month (monthly maximum of 25
[[Page 36144]]
Historical Research Reports) or $160 [$130] per month (monthly maximum
of 100 Historical Research Reports). The Nasdaq Trading and Compliance
Data Package includes:
[(1) Daily Share Volume Report for a Broker/Dealer (Member Firm's
information only)]
(1) [(2)] Monthly Compliance Report Cards (Member Firm's
information only).
(2) [(3)] Monthly Summaries.
(3) [(4)] Historical Research Reports.
[(i) Market Maker Price Movement Report].
[(ii) Equity Trade Journal (Member Firm's information only)].
The Association may modify the contents of the Nasdaq Trading and
Compliance Data Package from time to time based on subscriber interest.
(o)-(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 proposes to modify the fees for trading and compliance data
available to NASD member firms via NasdaqTrader.com, as well as to
update the information that is included in the Data Package.
NasdaqTrader.com allows NASD member firms to obtain data regarding
their own trading volume in securities in which they report volume, as
well as information concerning their compliance with NASD rules.
Specifically, NASD member firms that subscribe to the Data Package
can obtain the following reports: (1) Monthly Compliance Report Cards,
which outline the firm's own compliance with various NASD rules; (2)
Monthly Summaries, which provide monthly trading volume statistics for
the top 50 market participants broken down by industry sector, security
or type of trading; and (3) Historical Research Reports, which provide
a variety of historical trading data such as a market maker's quote
updates for a security on a specified date. Due to the lack of customer
demand, Nasdaq removed the Daily Share Volume Report from the Data
Package in March 2005.\7\
---------------------------------------------------------------------------
\7\ See footnote 5 supra.
---------------------------------------------------------------------------
Use of this service is voluntary and NASD member firms have the
option of subscribing to two different levels of the Data Package. The
``basic'' level, which currently has a fee of $100 per month, allows
access to a maximum of 25 Historical Research Reports per month. The
``premium'' level, which currently has a fee of $130 per month, allows
access to a maximum of 100 Historical Research Reports per month. These
fees have not increased since October 2003, even though several
enhancements have been made since that time. Some of these enhancements
include: (1) New OATS Compliance Report Cards; and (2) new historical
research reports (e.g., Time and Sales with Inside Quotes and NASDAQ
Market Center Activity Reports for Other Exchange-Listed Securities).
In order to help cover the costs associated with the maintenance of
the Data Package service, as well as the implementation of additional
enhancements to the service in the near future, Nasdaq proposes to
increase the subscription fee for the service. Specifically, Nasdaq
proposes to increase the subscription fee for the ``basic'' level from
$100 to $130 per month, and increase the fee for the ``premium'' level
from $130 to $160 per month. These fee increases will commence on July
1, 2006.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of section 15A of the Act,\8\ in general and with
section 15A(b)(5) of the Act,\9\ 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. Specifically, use of the
Data Package service is voluntary and the subscription fees will be
imposed on all member firms equally based on the level of service
selected. In addition, the increase in fees will help cover the costs
associated with maintaining and enhancing the Data Package service.
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\8\ 15 U.S.C. 78o-3.
\9\ 15 U.S.C. 78o-3(b)(5).
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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 member 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.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2006-072 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-2006-072. 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
[[Page 36145]]
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-2006-072 and should be
submitted on or before July 14, 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. E6-9936 Filed 6-22-06; 8:45 am]
BILLING CODE 8010-01-P
