Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change to Modify Nasdaq Data Feeds, 42428-42432 [E6-11925]
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Federal Register / Vol. 71, No. 143 / Wednesday, July 26, 2006 / Notices
conduct appropriate surveillance of
trading activity on the DRF and has in
place relevant surveillance procedures.5
All classes of securities traded on the
DRF would be subject to the Exchange’s
Hybrid System rules relating to the
electronic component of Hybrid trading
and any applicable non-trading rules.
To the extent system capacity limits the
number of members that can quote on
the DRF, proposed Exchange Rule 6.18
provides a priority system to select
member participants. Connectivity
procedures are available to all CBOE
members. The Exchange represents that
there is already sufficient member
connectivity to ensure that the DRF, if
activated, could operate in a useful
manner.6
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.7 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(1) of the
Act,8 which requires that an exchange is
organized and has the capacity to be
able to carry out the purposes of the Act
and to comply, and to enforce
compliance by its members and persons
associated with its members, with the
provisions of the Act, the rules and
regulations thereunder, and the rules of
the exchange. Specifically, the
Commission finds that proposed
Exchange Rule 6.18 provides a business
continuity plan that is reasonably
designed to allow the Exchange to
continue its trading operations in the
event a disaster or other unusual
circumstance renders the CBOE trading
floor inoperable. Furthermore, the
Commission believes the proposed rule
change is reasonably designed to
enhance the resilience of the U.S.
financial markets generally.
In addition, the Commission finds
that the proposal is consistent with
Section 6(b)(5) of the Act,9 which
requires, among other things, that the
rules of a national securities exchange
be designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. Specifically, the
Commission finds the proposed rule
change is reasonably designed to
provide market participants with the
necessary disclosure to understand the
Exchange’s operational capabilities and
plans in the event of a disaster.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–CBOE–2006–
01), as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–11926 Filed 7–25–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54179; File No. SR–
NASDAQ–2006–013]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change to
Modify Nasdaq Data Feeds
July 20, 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 21,
2006, The NASDAQ Stock Market LLC
(‘‘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. 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 Substance of
the Proposed Rule Change
Nasdaq is proposing to incorporate
data from Nasdaq’s INET facility into
Nasdaq TotalView data entitlements and
to establish fees for the use and
distribution of those data entitlements.
Nasdaq proposes to: (1) Incorporate the
INET ITCH Feed into the TotalView
entitlement, rename the feed TotalView
ITCH, and charge TotalView user fees to
TotalView ITCH Feed recipients; (2) add
the full depth of Nasdaq Market
Participant quoting of New York Stock
Exchange-(‘‘NYSE’’) and American
Stock Exchange-(‘‘Amex’’) listed stocks
into the TotalView entitlement; (3)
establish a modified distributor fee for
the TotalView entitlement, renamed the
‘‘Depth Feed’’; (4) establish a modified
user fee schedule for TotalView data; (5)
allow for the unlimited, free distribution
of Nasdaq’s aggregate best bid and offer
quotation for Nasdaq’s quoting in NYSEand Amex-listed stocks; and (6) charge
fees for the receipt and distribution of
individual Nasdaq Market Participants’
best bid and offer in NYSE- and Amexlisted stocks. If approved, Nasdaq states
that it would make this proposal
effective at the beginning of the first full
month following the integration of
Nasdaq’s trading systems into a single
platform.3
Below is the text of the proposed rule
change. Proposed new language is
italicized and proposed deletions are in
[brackets].
*
*
*
*
*
7019. Market Data Distributor Fees
(a) No change.
(b) The charge to be paid by
Distributors of the following Nasdaq
Market Center real time data feeds shall
be:
Monthly direct
access fee
Issue Specific Data ................................
Monthly internal
distributor fee
Monthly external
distributor fee
............................
................................................................
$1000 for distribution to 50 or fewer
subscribers;
$2,500 for distribution to more than 50
and less than or equal to 100 subscribers;
$4,500 for distribution to greater than
100.
$500 for distribution to 10 or fewer subscribers;
Dynamic Intraday ...................................
$2,500
$1,000 for distribution to greater than
10 subscribers.
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Depth Feed:
5 See
Notice at 3.
8 15
U.S.C. 78f(b)(1).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
6 Id.
9 15
7 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
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2 17
CFR 240.19b–4.
Securities Exchange Act Release No. 53583
(March 31, 2006), 71 FR 19573 (April 14, 2006)
(SR–NASDAQ–2006–001).
3 See
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Federal Register / Vol. 71, No. 143 / Wednesday, July 26, 2006 / Notices
Monthly direct
access fee
[TotalView].
[OpenView].
Daily ................................................
MFQS ..............................................
Market Summary Statistics:
Intraday ...........................................
Real Time Index.
sroberts on PROD1PC70 with NOTICES
(a) TotalView Entitlement
The TotalView entitlement allows a
subscriber to see all individual Nasdaq
Market Center participant orders and
quotes displayed in the system as well
as the aggregate size of such orders and
quotes at each price level in the
execution functionality of the Nasdaq
Market Center, which currently includes
Nasdaq, NYSE- and Amex-listed
securities. In the case of Nasdaq listed
securities, this entitlement
automatically includes[ing] the NQDS
feed [and the Brut System Book Feed].
(1)(A) Except as provided in (a)(1)(B)
and (C), for the TotalView entitlement
there shall be a $75 [70] monthly charge
for each controlled device.
(B) Except as provided in (a)(1)(C), a
non-professional subscriber, as defined
in Rule 7011(b), shall pay $14 per
month for each controlled device.
(C) As an alternative to (a)(1)(A) and
(B), a broker-dealer distributor may
purchase an enterprise license at a rate
of $25,000 for non-professional
subscribers or $100,000 per month for
both professional and non-professional
subscribers. The enterprise license
entitles a distributor to provide
TotalView to an unlimited number of
internal users, whether such users
receive the data directly or through
third-party vendors, and external users
with whom the firm has a brokerage
relationship. The enterprise license
shall not apply to relevant Level 1 and
NQDS fees.
(2) 30-Day Free-Trial Offer. Nasdaq
shall offer all new individual
subscribers and potential new
individual subscribers a 30-day waiver
of the user fees for TotalView. This
waiver shall not include the incremental
fees assessed for the NQDS-only service
[, which are $30 for professional users
and $9 for non-professional users per
month]. This fee waiver period shall be
applied on a rolling basis, determined
by the date on which a new individual
subscriber or potential individual
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$0 ...........................................................
$500.
$500
7023. Nasdaq TotalView
17:16 Jul 25, 2006
Monthly external
distributor fee
$500
A distributor shall pay the higher of
either the internal distributor fee or the
external distributor fee but not both.
(c)–(d) No change.
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Monthly internal
distributor fee
$50 .........................................................
$1,500.
subscriber is first entitled by a
distributor to receive access to
TotalView. A distributor may only
provide this waiver to a specific
individual subscriber once.
For the period of the offer, only the
TotalView portion of the TotalView
monthly fee [of $40 per professional
user and $5 per non-professional user
per month] shall be waived.
(b) No change.
(c) OpenView
(1) The OpenView entitlement
package consists of [all] the best bid and
offer quotation from each individual
Nasdaq Market Center participant
quoting [quotes and orders] in nonNasdaq exchange-listed securities in the
system. There shall be a charge of $6 per
month per controlled device for Open
View.
(2) The OpenView Top-of-File
(‘‘OpenView TOF’’) entitlement package
consists of the Nasdaq aggregate best
bid and offer quotation for non-Nasdaq
exchange-listed securities in the system.
There shall be no fee for the distribution
of the Open View TOF.
(d) 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
On December 7, 2005, Nasdaq
acquired INET ATS, Inc., a registered
broker-dealer and member of the NASD,
and operator of the INET ATS (‘‘INET’’).
Once purchased by Nasdaq, INET
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became a facility of a national securities
association. On November 1, 2005,
Nasdaq submitted a proposed rule
change to establish rules governing the
operation of this facility.4 This proposed
rule change was approved by the
Commission on December 7, 2005.5 On
January 13, 2006, the Commission
issued an order conditionally approving
Nasdaq’s registration as a national
securities exchange.6
In its proposed rules governing the
operation of the INET facility, Nasdaq
stated its intention of ultimately
integrating the INET facility with
Nasdaq into a single technology
platform that would further enhance
execution quality for system users.7
Nasdaq states that, as part of that
process, it must, among other things,
have INET distribute its full depth of its
order book via its premium data
entitlements, e.g., TotalView.8 Nasdaq
states that this step would be completed
when Nasdaq completes the integration
of its INET, Brut, and Nasdaq Market
Center trading facilities into a single
integrated system—the ‘‘Single Book’’—
as set forth in SR–NASDAQ–2006–001.9
Nasdaq states that Nasdaq TotalView
is a comprehensive source of Nasdaq
order and quote information, and
provides the greatest level of
transparency into the Nasdaq stock
market. Nasdaq states that today,
TotalView provides 23 times the
liquidity displayed and nearly 5 times
the orders disseminated by the Nasdaq
Quotation Dissemination Service
(‘‘NQDS’’). Nasdaq’s full depth in
NYSE- and Amex-listed stocks
(OpenView) also provides access to 40%
more liquidity than the top-of-file quote
quotes provided via the Consolidated
Quotation System feed from the
Securities Information Automation
4 Securities Exchange Act Release No. 52723
(November 2, 2005), 70 FR 67513 (November 7,
2005) (proposing SR–NASD–2005–128).
5 Securities Exchange Act Release No. 52902
(December 7, 2005), 70 FR 73810 (December 13,
2005) (approving SR–NASD–2005–128).
6 Securities Exchange Act Release No. 53128
(January 13, 2006), 71 FR 3550 (January 23, 2006)
(File No. 10–131).
7 See supra note 4 at 67522.
8 Id.
9 See supra note 3.
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Corporation. If approved, Nasdaq
expects the proposed Nasdaq, Brut, and
INET integrated data would represent
triple the current level of liquidity.
Integrating INET Data Into Nasdaq
Entitlements
Nasdaq states that a consequence of
this integration is that market
participants would be able to receive
real-time information regarding the
orders in INET’s order book via two
distinct sources. Today, Nasdaq’s
TotalView Feed provides information
regarding all quotes and orders in the
Nasdaq Market Center for Nasdaq-listed
securities (including, but not limited to,
INET orders). Upon the integration of
the INET system, the Nasdaq TotalView
entitlement would, if approved, for the
first time include the equivalent
quotation information for NYSE- and
Amex-listed securities. Also today,
INET separately disseminates the INET
ITCH Feed, which contains information
regarding orders entered into INET.
Upon the integration to a single
consolidated platform, the ITCH data
feeds (1.0, 2.0, 2.0a, and 3.0) would be
re-named ‘‘TotalView ITCH’’ and would
contain the equivalent quotes and
orders as those carried by TotalView,
albeit in different formats. Thus, upon
integration of Nasdaq’s trading systems,
the TotalView Entitlement, would be
available in two separate datafeed
formats, and both would contain
substantially more data than they do
today.
Because Nasdaq proposes to continue
to distribute INET order information via
both the traditional TotalView Feed as
well as the TotalView ITCH Feed and
because both would contain identical
data, Nasdaq believes that it is
appropriate for it to incorporate the
TotalView ITCH Feed within the
TotalView entitlement for fee purposes.
The TotalView entitlement is intended
to assess fees for the receipt of real-time
information regarding depth of order
book and related information, regardless
of source. While Nasdaq believes it
important to offer market participants
the choice to receive INET order book
information via either the existing
TotalView Feed or the TotalView ITCH
Feed, it further believes there is no
justification to warrant differential fees
based on the method of delivery because
the two methods would provide
recipients with the same data.
Accordingly, Nasdaq proposes to
incorporate the TotalView ITCH Feed
into the TotalView entitlement effective
upon the completion of the integration
of the Single Book. Nasdaq states that,
as of that time, any recipient of the
TotalView ITCH Feeds would need to
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complete relevant market data
agreements, begin submission of
monthly usage reporting, and pay
associated fees. Current recipients of the
TotalView ITCH pay no fees and would
be required to pay the TotalView
entitlement fee for the first time. Under
this proposal, incremental fees would be
assessed only where a distributor
distributes the TotalView ITCH Feeds in
an application or context that does not
already distribute TotalView
Entitlements to provide Nasdaq Market
Center order book information. Nasdaq
notes that, of the approximately 145
firms currently receiving the INET ITCH
Feeds, many are already TotalView or
OpenView distributors, and thus, for
those firms, this rule change would
impose no incremental expense unless
their usage is expanded.
Consolidating Total View and
OpenView Distribution and User Fees
Nasdaq offers various data products
that firms may purchase and
redistribute either within their own
organizations or to outside parties.
Nasdaq assesses ‘‘distributor fees’’ that
are designed to encourage broad
distribution of the data, and allow
Nasdaq to recover the relatively high
fixed costs associated with supporting
connectivity and contractual
relationships with distributors.
Currently, Nasdaq has the following
approved distributor fees 10 in place for
both TotalView and OpenView.
• TotalView and OpenView Direct
Access Fee: $2,500 per month each.
• TotalView and OpenView Internal
Distribution Fee: $1,000 per month
each.
• TotalView and OpenView External
Distribution Fee: $2,500 per month
each.
Thus, for example, if a firm receives
TotalView and OpenView directly from
Nasdaq and distributes the data
externally, the firm currently pays
$10,000 per month in distributor fees
($2,500 for direct access to TotalView,
$2,500 for direct access to OpenView,
$2,500 to externally distribute
TotalView, and $2,500 to externally
distribute OpenView).
To promote the continued
distribution of full depth data as it
becomes available with the full
complement of INET order information,
Nasdaq is proposing to combine the
distribution of TotalView and
OpenView data into a single entitlement
for distribution purposes. Specifically,
Nasdaq proposes to establish the ‘‘Depth
10 See Securities Exchange Act Release No. 51814
(June 9, 2005), 70 FR 35151 (June 16, 2005)
(approving SR–NASD–2004–185).
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Feed Distributor Fees,’’ a consolidated
entitlement with a pricing structure
comprised of three components:
• Depth Feed Direct Access Fee:
$2,500 per month for any organization
that receives an intraday Nasdaq market
center depth data product directly from
Nasdaq. Nasdaq states that a distributor
receiving this data indirectly via a retransmission vendor would not be liable
for the Direct Access Fee.
• Depth Feed Internal Distribution
Fee: $500 per month for internal
distributors with distribution of
TotalView data to 10 or fewer
subscribers; $1000 per month for
internal distributors with distribution of
TotalView data to greater than 10
subscribers. Nasdaq states that, as with
the current Internal Distribution Fees,
this fee would be applicable to any
organization that receives an intraday
Nasdaq market center depth data
product (either directly from Nasdaq or
through a retransmission vendor) and
distributes the data solely within its
own organization.
• Depth Feed External Distribution
Fee: $1,000 per month for external
distributors distributing TotalView data
to 50 or fewer subscribers; $2,500 per
month for external distributors
distributing TotalView data to more
than 50 and less than or equal to 100
subscribers; and $4,500 per month for
external distributors distributing
TotalView data to more than 100
recipients. Nasdaq states that, as is the
case today, this fee would be applicable
to any organization that receives an
intraday Nasdaq market center depth
data product (either directly from
Nasdaq or through a retransmission
vendor) and distributes the data outside
its own organization.
Nasdaq states that, under the new
schedule, a firm that receives a
TotalView Feed and/or an INET ITCH
Feed directly from Nasdaq and
distributes the data externally, would
pay a range of $3,500-$7,000 per month,
depending upon the number of end
users, a significant reduction from the
currently approved fees. Nasdaq states
that the only firms that would be
assessed higher fees would be: (1)
distributors of the TotalView ITCH Feed
alone because it is currently free and is
proposed to be fee liable; and (2) firms
that currently distribute either
TotalView or OpenView but not both,
and distribute that data to more than
100 subscribers, would have a resulting
increase of $2,000 per month. Nasdaq
states that, for that incremental $2,000
per month, those firms, of which there
are currently seventeen, would gain the
ability to distribute both NYSE-/Amexlisted and Nasdaq-listed depth
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information to their subscribers where
they had previously provided only one
of them.
Nasdaq states that an organization
that receives the Nasdaq Market Center
full depth data directly from Nasdaq
would pay the Direct Access Fee plus
the higher of either the Internal
Distribution or External Distribution Fee
(but not both). An organization that only
receives the Nasdaq Market Center full
depth data indirectly from a
retransmission vendor would pay either
the Internal Distribution or External
Distribution fee (but not both). Nasdaq
states that, as with past distributor fee
structures, the External Distribution Fee
is higher than the Internal Distribution
Fee to reflect the fact that external
distributors typically have broader
distribution of the data than internal
distributors.
Nasdaq believes that lowering the fee
for firms that subscribe to depth feeds
would encourage more vendors to take
the combination of both feeds.
Additionally, Nasdaq believes that the
new structure spreads the burden of
Nasdaq data fees more equitably across
the broader customer base of data
distributors and consumers of Nasdaq
market data.
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Fee Increased To Recover Costs Of
Providing Additional Data
Nasdaq states that, upon integration of
the Single Book, both of Nasdaq’s full
depth feeds—TotalView and ITCH—
would contain not only order and
quotation information from Nasdaq
market participant activity in Nasdaqlisted securities, but NYSE- and Amexlisted stocks as well. Upon the full
Single Book integration, Nasdaq
proposes to integrate the entitlement for
full depth from Nasdaq market
participants quoting in Nasdaq stocks
with the full depth from Nasdaq market
participants quoting in NYSE- and
Amex-listed stocks, resulting in a single
entitlement to be called TotalView. This
single entitlement would cost $75 per
user per month for professional users
and $14 per user per month for nonprofessional users. Nasdaq states that, in
the case of non-professionals, there is no
fee increase on account of this change,
simply an increase in functionality. In
the case of professional users, the
TotalView user fee increases by $5,
though for those users who previously
subscribed to the TotalView and
OpenView entitlements separately, this
amounts to a $1 per user per month
discount. Nasdaq states that only those
users that had one of the companion
entitlements without the other would
pay more under this proposal.
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Distribution of Quotation Information
for NYSE and Amex Securities
To encourage more competition in the
trading and quoting of NYSE- and
Amex-listed stocks, as well as to
encourage subscribership to Nasdaq’s
full-depth products, Nasdaq is
proposing Nasdaq Rule 7023(c)(2) to
institute a fee waiver for firms wishing
to distribute Nasdaq’s aggregate realtime best bid and offer quote for NYSEand Amex-listed stocks via the
TotalView or TotalView ITCH versions
of its feeds.
Nasdaq states that, in support of its
exchange registration transition, it is
proposing to distribute the best bid and
offer from each Nasdaq market
participant quoting in NYSE- and
Amex-listed stocks in real-time. As set
forth in Nasdaq Rule 7023(c)(1), Nasdaq
proposes a $6 per user per month price
for this product. Nasdaq expects that
most users currently receiving full
depth from Nasdaq in NYSE- and Amexlisted stocks would continue to do so
via the TotalView entitlement. However,
for any subscriber currently receiving
only this depth data for NYSE- and
Amex-listed stocks (i.e., OpenView
data), and not wishing to also receive
the equivalent data for Nasdaq-listed
stocks, this option would allow a user
to continue paying at the same rate
schedule for user-fees that they have in
the past and the distributor fee schedule
referenced earlier in this filing.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act 11 in
general, and Section 6(b)(4) of the Act 12
in particular, in that the incorporation
of the TotalView ITCH Feeds into the
TotalView entitlement and creating a
unified distributor fee provides for the
equitable allocation of reasonable
charges among the persons distributing
and purchasing Nasdaq depth of order
book information. Nasdaq states that the
proposed pricing structure would
enable it to equitably charge for INET
depth of book information regardless of
the manner in which it is received,
continue to provide market participants
with choice regarding receipt of this
information, and ease the transition to a
single technology platform. Nasdaq
further believes that this rule change
would encourage the broader
redistribution of the Nasdaq depth of
book information, thus improving
transparency and thereby benefit the
investing public.
PO 00000
11 15
12 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change would result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or 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 rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2006–013 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2006–013. 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
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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 Nasdaq. 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–NASDAQ–2006–013 and
should be submitted on or before
August 16, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–11925 Filed 7–25–06; 8:45 am]
BILLING CODE 8010–01–P
fee, or other charge applicable only to a
member imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act 3
and Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
fee schedule reflected in Exchange Rule
11.10(A) to provide for a quotation fee.
The quotation fee would be based upon
the number of changes to the price or
size of an ETP Holder’s displayed bid or
offer on the Exchange (‘‘quotation
updates’’) and would apply only to the
extent the ETP Holder’s average number
of daily quotation updates is greater
than 3 million. Below is the text of the
proposed rule change, as amended.
Proposed new language is in italics.
1. Purpose
The Exchange’s fee schedule reflected
in Exchange Rule 11.10(A) currently
provides for fees payable by ETP
Holders based upon, among other
things, transactions executed on the
Exchange, but does not provide for any
fees based solely upon the number of
changes to the price or size of an ETP
Holder’s quotation updates. However,
NSX states that quotation updates can
affect both the Exchange’s systems
resources and its regulatory functions.
For example, a sufficiently high level of
quotation updates could require that the
Exchange expend additional resources
on its systems technology in order to
avoid capacity and performance
degradation issues. NSX states that the
levels of surveillance and investigation
required in order for the Exchange to
adequately discharge its self-regulatory
obligations also increase with an
increase in quotation updates. For these
reasons, the Exchange believes that it is
appropriate to charge a fee for high
levels of quotation updates that
consume a high amount of the
Exchange’s systems capacity and require
a higher amount of regulatory scrutiny.
The proposed quotation fee would be
based upon the number of quotations
updates posted by an ETP Holder, but
would apply only to the extent that an
ETP Holder averages in excess of 3
million quotation updates per day. The
Exchange is proposing to charge ETP
Holders that provide quotation updates
in excess of 3 million updates on an
average daily basis a penny a quote for
all quotation updates in excess of 3
million.5 The average daily quotation
updates would be calculated on a
monthly basis taking the total quotation
updates for the month-end period
(‘‘TQU’’) and dividing the TQU by the
number of trading days the ETP Holder
provides quotation updates. Three
million would be subtracted from this
average daily quotation to yield the
amount of daily quotations in excess of
3 million quotes. The excess would be
multiplied by a penny to yield the daily
RULES OF NATIONAL STOCK
EXCHANGE
*
*
*
*
*
*
*
CHAPTER XI
SECURITIES AND EXCHANGE
COMMISSION
Trading Rules
[Release No. 34–54180; File No. SR–NSX–
2006–09]
Rule 11.10 National Securities
Trading System Fees
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto to
Amend Its Fee Schedule Contained in
Exchange Rule 11.10(A) to Include a
Quotation Fee
A. Trading Fees
(a)-(r) No change.
(s) Quotation Fee. ETP Holders will be
charged for quotation updates based
upon the per quotation update rates as
noted below. A ‘‘quotation update’’
means each change to the price or size
of an ETP Holder’s displayed bid or
offer on the Exchange.
*
sroberts on PROD1PC70 with NOTICES
July 20, 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 July 3,
2006, the National Stock Exchange, Inc.
(‘‘NSX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On July 19,
2006, NSX submitted Amendment No. 1
to the proposed rule change. On July 20,
2006, NSX submitted Amendment No. 2
to the proposed rule change. The
Exchange has designated this proposal
as one establishing or changing a due,
*
*
Avg. daily quotation
updates
Charge per quotation
update
0 to 3,000,000 ...........
3,000,001 and higher
$0.00
$0.01 over 3,000,000
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change, as amended,
and discussed any comments it received
on the proposed rule change. The text
13 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Aug<31>2005
17:16 Jul 25, 2006
3 15
4 17
Jkt 208001
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00087
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
5 Thus, for example, an ETP Holder that has an
averaged daily quotation updates of 3,000,001
would be assessed a penny and not have to pay
$30,000.01.
E:\FR\FM\26JYN1.SGM
26JYN1
]]>Agencies
[Federal Register Volume 71, Number 143 (Wednesday, July 26, 2006)]
[Notices]
[Pages 42428-42432]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11925]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54179; File No. SR-NASDAQ-2006-013]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change to Modify Nasdaq Data Feeds
July 20, 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 21, 2006, The NASDAQ Stock Market LLC (``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. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq is proposing to incorporate data from Nasdaq's INET facility
into Nasdaq TotalView data entitlements and to establish fees for the
use and distribution of those data entitlements. Nasdaq proposes to:
(1) Incorporate the INET ITCH Feed into the TotalView entitlement,
rename the feed TotalView ITCH, and charge TotalView user fees to
TotalView ITCH Feed recipients; (2) add the full depth of Nasdaq Market
Participant quoting of New York Stock Exchange-(``NYSE'') and American
Stock Exchange-(``Amex'') listed stocks into the TotalView entitlement;
(3) establish a modified distributor fee for the TotalView entitlement,
renamed the ``Depth Feed''; (4) establish a modified user fee schedule
for TotalView data; (5) allow for the unlimited, free distribution of
Nasdaq's aggregate best bid and offer quotation for Nasdaq's quoting in
NYSE- and Amex-listed stocks; and (6) charge fees for the receipt and
distribution of individual Nasdaq Market Participants' best bid and
offer in NYSE- and Amex-listed stocks. If approved, Nasdaq states that
it would make this proposal effective at the beginning of the first
full month following the integration of Nasdaq's trading systems into a
single platform.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 53583 (March 31,
2006), 71 FR 19573 (April 14, 2006) (SR-NASDAQ-2006-001).
---------------------------------------------------------------------------
Below is the text of the proposed rule change. Proposed new
language is italicized and proposed deletions are in [brackets].
* * * * *
7019. Market Data Distributor Fees
(a) No change.
(b) The charge to be paid by Distributors of the following Nasdaq
Market Center real time data feeds shall be:
----------------------------------------------------------------------------------------------------------------
Monthly direct Monthly internal Monthly external
access fee distributor fee distributor fee
----------------------------------------------------------------------------------------------------------------
Issue Specific Data.................... ................ .......................... $1000 for distribution to
50 or fewer subscribers;
$500 for distribution to $2,500 for distribution
10 or fewer subscribers; to more than 50 and less
than or equal to 100
subscribers;
Dynamic Intraday....................... $2,500 $1,000 for distribution to $4,500 for distribution
greater than 10 to greater than 100.
subscribers.
Depth Feed:
[[Page 42429]]
[TotalView]........................
[OpenView].........................
Daily.............................. $500 $0........................ $500.
MFQS...............................
Market Summary Statistics:
Intraday........................... $500 $50....................... $1,500.
Real Time Index........................
----------------------------------------------------------------------------------------------------------------
A distributor shall pay the higher of either the internal
distributor fee or the external distributor fee but not both.
(c)-(d) No change.
7023. Nasdaq TotalView
(a) TotalView Entitlement
The TotalView entitlement allows a subscriber to see all individual
Nasdaq Market Center participant orders and quotes displayed in the
system as well as the aggregate size of such orders and quotes at each
price level in the execution functionality of the Nasdaq Market Center,
which currently includes Nasdaq, NYSE- and Amex-listed securities. In
the case of Nasdaq listed securities, this entitlement automatically
includes[ing] the NQDS feed [and the Brut System Book Feed].
(1)(A) Except as provided in (a)(1)(B) and (C), for the TotalView
entitlement there shall be a $75 [70] monthly charge for each
controlled device.
(B) Except as provided in (a)(1)(C), a non-professional subscriber,
as defined in Rule 7011(b), shall pay $14 per month for each controlled
device.
(C) As an alternative to (a)(1)(A) and (B), a broker-dealer
distributor may purchase an enterprise license at a rate of $25,000 for
non-professional subscribers or $100,000 per month for both
professional and non-professional subscribers. The enterprise license
entitles a distributor to provide TotalView to an unlimited number of
internal users, whether such users receive the data directly or through
third-party vendors, and external users with whom the firm has a
brokerage relationship. The enterprise license shall not apply to
relevant Level 1 and NQDS fees.
(2) 30-Day Free-Trial Offer. Nasdaq shall offer all new individual
subscribers and potential new individual subscribers a 30-day waiver of
the user fees for TotalView. This waiver shall not include the
incremental fees assessed for the NQDS-only service [, which are $30
for professional users and $9 for non-professional users per month].
This fee waiver period shall be applied on a rolling basis, determined
by the date on which a new individual subscriber or potential
individual subscriber is first entitled by a distributor to receive
access to TotalView. A distributor may only provide this waiver to a
specific individual subscriber once.
For the period of the offer, only the TotalView portion of the
TotalView monthly fee [of $40 per professional user and $5 per non-
professional user per month] shall be waived.
(b) No change.
(c) OpenView
(1) The OpenView entitlement package consists of [all] the best bid
and offer quotation from each individual Nasdaq Market Center
participant quoting [quotes and orders] in non-Nasdaq exchange-listed
securities in the system. There shall be a charge of $6 per month per
controlled device for Open View.
(2) The OpenView Top-of-File (``OpenView TOF'') entitlement package
consists of the Nasdaq aggregate best bid and offer quotation for non-
Nasdaq exchange-listed securities in the system. There shall be no fee
for the distribution of the Open View TOF.
(d) 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
On December 7, 2005, Nasdaq acquired INET ATS, Inc., a registered
broker-dealer and member of the NASD, and operator of the INET ATS
(``INET''). Once purchased by Nasdaq, INET became a facility of a
national securities association. On November 1, 2005, Nasdaq submitted
a proposed rule change to establish rules governing the operation of
this facility.\4\ This proposed rule change was approved by the
Commission on December 7, 2005.\5\ On January 13, 2006, the Commission
issued an order conditionally approving Nasdaq's registration as a
national securities exchange.\6\
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 52723 (November 2,
2005), 70 FR 67513 (November 7, 2005) (proposing SR-NASD-2005-128).
\5\ Securities Exchange Act Release No. 52902 (December 7,
2005), 70 FR 73810 (December 13, 2005) (approving SR-NASD-2005-128).
\6\ Securities Exchange Act Release No. 53128 (January 13,
2006), 71 FR 3550 (January 23, 2006) (File No. 10-131).
---------------------------------------------------------------------------
In its proposed rules governing the operation of the INET facility,
Nasdaq stated its intention of ultimately integrating the INET facility
with Nasdaq into a single technology platform that would further
enhance execution quality for system users.\7\ Nasdaq states that, as
part of that process, it must, among other things, have INET distribute
its full depth of its order book via its premium data entitlements,
e.g., TotalView.\8\ Nasdaq states that this step would be completed
when Nasdaq completes the integration of its INET, Brut, and Nasdaq
Market Center trading facilities into a single integrated system--the
``Single Book''--as set forth in SR-NASDAQ-2006-001.\9\
---------------------------------------------------------------------------
\7\ See supra note 4 at 67522.
\8\ Id.
\9\ See supra note 3.
---------------------------------------------------------------------------
Nasdaq states that Nasdaq TotalView is a comprehensive source of
Nasdaq order and quote information, and provides the greatest level of
transparency into the Nasdaq stock market. Nasdaq states that today,
TotalView provides 23 times the liquidity displayed and nearly 5 times
the orders disseminated by the Nasdaq Quotation Dissemination Service
(``NQDS''). Nasdaq's full depth in NYSE- and Amex-listed stocks
(OpenView) also provides access to 40% more liquidity than the top-of-
file quote quotes provided via the Consolidated Quotation System feed
from the Securities Information Automation
[[Page 42430]]
Corporation. If approved, Nasdaq expects the proposed Nasdaq, Brut, and
INET integrated data would represent triple the current level of
liquidity.
Integrating INET Data Into Nasdaq Entitlements
Nasdaq states that a consequence of this integration is that market
participants would be able to receive real-time information regarding
the orders in INET's order book via two distinct sources. Today,
Nasdaq's TotalView Feed provides information regarding all quotes and
orders in the Nasdaq Market Center for Nasdaq-listed securities
(including, but not limited to, INET orders). Upon the integration of
the INET system, the Nasdaq TotalView entitlement would, if approved,
for the first time include the equivalent quotation information for
NYSE- and Amex-listed securities. Also today, INET separately
disseminates the INET ITCH Feed, which contains information regarding
orders entered into INET. Upon the integration to a single consolidated
platform, the ITCH data feeds (1.0, 2.0, 2.0a, and 3.0) would be re-
named ``TotalView ITCH'' and would contain the equivalent quotes and
orders as those carried by TotalView, albeit in different formats.
Thus, upon integration of Nasdaq's trading systems, the TotalView
Entitlement, would be available in two separate datafeed formats, and
both would contain substantially more data than they do today.
Because Nasdaq proposes to continue to distribute INET order
information via both the traditional TotalView Feed as well as the
TotalView ITCH Feed and because both would contain identical data,
Nasdaq believes that it is appropriate for it to incorporate the
TotalView ITCH Feed within the TotalView entitlement for fee purposes.
The TotalView entitlement is intended to assess fees for the receipt of
real-time information regarding depth of order book and related
information, regardless of source. While Nasdaq believes it important
to offer market participants the choice to receive INET order book
information via either the existing TotalView Feed or the TotalView
ITCH Feed, it further believes there is no justification to warrant
differential fees based on the method of delivery because the two
methods would provide recipients with the same data.
Accordingly, Nasdaq proposes to incorporate the TotalView ITCH Feed
into the TotalView entitlement effective upon the completion of the
integration of the Single Book. Nasdaq states that, as of that time,
any recipient of the TotalView ITCH Feeds would need to complete
relevant market data agreements, begin submission of monthly usage
reporting, and pay associated fees. Current recipients of the TotalView
ITCH pay no fees and would be required to pay the TotalView entitlement
fee for the first time. Under this proposal, incremental fees would be
assessed only where a distributor distributes the TotalView ITCH Feeds
in an application or context that does not already distribute TotalView
Entitlements to provide Nasdaq Market Center order book information.
Nasdaq notes that, of the approximately 145 firms currently receiving
the INET ITCH Feeds, many are already TotalView or OpenView
distributors, and thus, for those firms, this rule change would impose
no incremental expense unless their usage is expanded.
Consolidating Total View and OpenView Distribution and User Fees
Nasdaq offers various data products that firms may purchase and
redistribute either within their own organizations or to outside
parties. Nasdaq assesses ``distributor fees'' that are designed to
encourage broad distribution of the data, and allow Nasdaq to recover
the relatively high fixed costs associated with supporting connectivity
and contractual relationships with distributors. Currently, Nasdaq has
the following approved distributor fees \10\ in place for both
TotalView and OpenView.
---------------------------------------------------------------------------
\10\ See Securities Exchange Act Release No. 51814 (June 9,
2005), 70 FR 35151 (June 16, 2005) (approving SR-NASD-2004-185).
---------------------------------------------------------------------------
TotalView and OpenView Direct Access Fee: $2,500 per month
each.
TotalView and OpenView Internal Distribution Fee: $1,000
per month each.
TotalView and OpenView External Distribution Fee: $2,500
per month each.
Thus, for example, if a firm receives TotalView and OpenView
directly from Nasdaq and distributes the data externally, the firm
currently pays $10,000 per month in distributor fees ($2,500 for direct
access to TotalView, $2,500 for direct access to OpenView, $2,500 to
externally distribute TotalView, and $2,500 to externally distribute
OpenView).
To promote the continued distribution of full depth data as it
becomes available with the full complement of INET order information,
Nasdaq is proposing to combine the distribution of TotalView and
OpenView data into a single entitlement for distribution purposes.
Specifically, Nasdaq proposes to establish the ``Depth Feed Distributor
Fees,'' a consolidated entitlement with a pricing structure comprised
of three components:
Depth Feed Direct Access Fee: $2,500 per month for any
organization that receives an intraday Nasdaq market center depth data
product directly from Nasdaq. Nasdaq states that a distributor
receiving this data indirectly via a re-transmission vendor would not
be liable for the Direct Access Fee.
Depth Feed Internal Distribution Fee: $500 per month for
internal distributors with distribution of TotalView data to 10 or
fewer subscribers; $1000 per month for internal distributors with
distribution of TotalView data to greater than 10 subscribers. Nasdaq
states that, as with the current Internal Distribution Fees, this fee
would be applicable to any organization that receives an intraday
Nasdaq market center depth data product (either directly from Nasdaq or
through a retransmission vendor) and distributes the data solely within
its own organization.
Depth Feed External Distribution Fee: $1,000 per month for
external distributors distributing TotalView data to 50 or fewer
subscribers; $2,500 per month for external distributors distributing
TotalView data to more than 50 and less than or equal to 100
subscribers; and $4,500 per month for external distributors
distributing TotalView data to more than 100 recipients. Nasdaq states
that, as is the case today, this fee would be applicable to any
organization that receives an intraday Nasdaq market center depth data
product (either directly from Nasdaq or through a retransmission
vendor) and distributes the data outside its own organization.
Nasdaq states that, under the new schedule, a firm that receives a
TotalView Feed and/or an INET ITCH Feed directly from Nasdaq and
distributes the data externally, would pay a range of $3,500-$7,000 per
month, depending upon the number of end users, a significant reduction
from the currently approved fees. Nasdaq states that the only firms
that would be assessed higher fees would be: (1) distributors of the
TotalView ITCH Feed alone because it is currently free and is proposed
to be fee liable; and (2) firms that currently distribute either
TotalView or OpenView but not both, and distribute that data to more
than 100 subscribers, would have a resulting increase of $2,000 per
month. Nasdaq states that, for that incremental $2,000 per month, those
firms, of which there are currently seventeen, would gain the ability
to distribute both NYSE-/Amex-listed and Nasdaq-listed depth
[[Page 42431]]
information to their subscribers where they had previously provided
only one of them.
Nasdaq states that an organization that receives the Nasdaq Market
Center full depth data directly from Nasdaq would pay the Direct Access
Fee plus the higher of either the Internal Distribution or External
Distribution Fee (but not both). An organization that only receives the
Nasdaq Market Center full depth data indirectly from a retransmission
vendor would pay either the Internal Distribution or External
Distribution fee (but not both). Nasdaq states that, as with past
distributor fee structures, the External Distribution Fee is higher
than the Internal Distribution Fee to reflect the fact that external
distributors typically have broader distribution of the data than
internal distributors.
Nasdaq believes that lowering the fee for firms that subscribe to
depth feeds would encourage more vendors to take the combination of
both feeds. Additionally, Nasdaq believes that the new structure
spreads the burden of Nasdaq data fees more equitably across the
broader customer base of data distributors and consumers of Nasdaq
market data.
Fee Increased To Recover Costs Of Providing Additional Data
Nasdaq states that, upon integration of the Single Book, both of
Nasdaq's full depth feeds--TotalView and ITCH--would contain not only
order and quotation information from Nasdaq market participant activity
in Nasdaq-listed securities, but NYSE- and Amex-listed stocks as well.
Upon the full Single Book integration, Nasdaq proposes to integrate the
entitlement for full depth from Nasdaq market participants quoting in
Nasdaq stocks with the full depth from Nasdaq market participants
quoting in NYSE- and Amex-listed stocks, resulting in a single
entitlement to be called TotalView. This single entitlement would cost
$75 per user per month for professional users and $14 per user per
month for non-professional users. Nasdaq states that, in the case of
non-professionals, there is no fee increase on account of this change,
simply an increase in functionality. In the case of professional users,
the TotalView user fee increases by $5, though for those users who
previously subscribed to the TotalView and OpenView entitlements
separately, this amounts to a $1 per user per month discount. Nasdaq
states that only those users that had one of the companion entitlements
without the other would pay more under this proposal.
Distribution of Quotation Information for NYSE and Amex Securities
To encourage more competition in the trading and quoting of NYSE-
and Amex-listed stocks, as well as to encourage subscribership to
Nasdaq's full-depth products, Nasdaq is proposing Nasdaq Rule
7023(c)(2) to institute a fee waiver for firms wishing to distribute
Nasdaq's aggregate real-time best bid and offer quote for NYSE- and
Amex-listed stocks via the TotalView or TotalView ITCH versions of its
feeds.
Nasdaq states that, in support of its exchange registration
transition, it is proposing to distribute the best bid and offer from
each Nasdaq market participant quoting in NYSE- and Amex-listed stocks
in real-time. As set forth in Nasdaq Rule 7023(c)(1), Nasdaq proposes a
$6 per user per month price for this product. Nasdaq expects that most
users currently receiving full depth from Nasdaq in NYSE- and Amex-
listed stocks would continue to do so via the TotalView entitlement.
However, for any subscriber currently receiving only this depth data
for NYSE- and Amex-listed stocks (i.e., OpenView data), and not wishing
to also receive the equivalent data for Nasdaq-listed stocks, this
option would allow a user to continue paying at the same rate schedule
for user-fees that they have in the past and the distributor fee
schedule referenced earlier in this filing.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act \11\ in general, and Section
6(b)(4) of the Act \12\ in particular, in that the incorporation of the
TotalView ITCH Feeds into the TotalView entitlement and creating a
unified distributor fee provides for the equitable allocation of
reasonable charges among the persons distributing and purchasing Nasdaq
depth of order book information. Nasdaq states that the proposed
pricing structure would enable it to equitably charge for INET depth of
book information regardless of the manner in which it is received,
continue to provide market participants with choice regarding receipt
of this information, and ease the transition to a single technology
platform. Nasdaq further believes that this rule change would encourage
the broader redistribution of the Nasdaq depth of book information,
thus improving transparency and thereby benefit the investing public.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change would result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or 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 Number SR-NASDAQ-2006-013 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2006-013. 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
[[Page 42432]]
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 Nasdaq.
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-NASDAQ-2006-
013 and should be submitted on or before August 16, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-11925 Filed 7-25-06; 8:45 am]
BILLING CODE 8010-01-P
