Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a New Service Called FilterView, 46955-46957 [E6-13319]
Download as PDF
Federal Register / Vol. 71, No. 157 / Tuesday, August 15, 2006 / Notices
46955
associated with the registration of those
that might fit within this category.
Accordingly, Nasdaq proposes to amend
its rule to exempt foreign associates
from registration with Nasdaq.
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:
SECURITIES AND EXCHANGE
COMMISSION
2. Statutory Basis.
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,3 in
general, and with Section 6(b)(5) of the
Act,4 in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, 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.
Nasdaq believes that the proposed rule
change will mitigate unnecessary
burdens on its members and their
associated persons without diminishing
the regulatory protections associated
with its membership rules.
Electronic Comments
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Establish a
New Service Called FilterView
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.
mstockstill on PROD1PC61 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which Nasdaq consents, the
Commission will:
(A) By order approve such proposed
rule change; or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
• 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–2006–016 on the
subject line.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.5
Nancy M. Morris,
Secretary.
[FR Doc. E6–13317 Filed 8–14–06; 8:45 am]
3 15
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15:41 Aug 14, 2006
5 17
Jkt 208001
August 8, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August 4,
Paper Comments
2006, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) filed with the Securities and
• Send paper comments in triplicate
Exchange Commission (‘‘Commission’’)
to Nancy M. Morris, Secretary,
the proposed rule change as described
Securities and Exchange Commission,
in Items I and II below, which Items
Station Place, 100 F Street, NE.,
have been prepared by Nasdaq. Nasdaq
Washington, DC 20549–1090.
has filed the proposal as a ‘‘nonAll submissions should refer to File
controversial’’ proposed rule change
Number SR-NASDAQ–2006–016. This
pursuant to Section 19(b)(3)(A) of the
file number should be included on the
Act,3 and Rule 19b–4(f)(6) thereunder,4
subject line if e-mail is used. To help the which renders the proposal effective
Commission process and review your
upon filing with the Commission.5 The
comments more efficiently, please use
Commission is publishing this notice to
only one method. The Commission will solicit comments on the proposed rule
post all comments on the Commission’s change from interested persons.
Internet Web site (https://www.sec.gov/
On February 22, 2006, The Nasdaq
rules/sro.shtml). Copies of the
Stock Market, Inc. (Nasdaq Inc.’’), as a
submission, all subsequent
subsidiary of the National Association
amendments, all written statements
of Securities Dealers, Inc. (‘‘NASD’’),
with respect to the proposed rule
initially provided notice pursuant to
change that are filed with the
Rule 19b–4(f)(6)(iii) under the Act of its
Commission, and all written
intent to file the proposed rule change
communications relating to the
as an NASD rule. NASD, through
proposed rule change between the
Nasdaq Inc., then filed the proposed
Commission and any person, other than rule change (SR–NASD–2006–034) on
those that may be withheld from the
March 3, 2006, and received
public in accordance with the
confirmation through the electronic
provisions of 5 U.S.C. 552, will be
filing system that the proposed rule
available for inspection and copying in
change was received by the
the Commission’s Public Reference
Commission.6 Later that same day, after
Room. Copies of such filing also will be reviewing the proposed rule change, the
available for inspection and copying at
Commission rejected the proposed rule
the principal office of Nasdaq. All
change because it contained
comments received will be posted
inconsistencies that rendered the
without change; the Commission does
proposed rule change unacceptable. Due
not edit personal identifying
to a systems error that is still being
information from submissions. You
investigated, Nasdaq Inc. did not receive
should submit only information that
notice that the Commission had rejected
you wish to make publicly available. All the proposed rule change. On July 24,
submissions should refer to File
2006, Nasdaq Inc. contacted
Number SR–NASDAQ–2006–016 and
Commission Staff to inquire as to why
should be submitted on or before
notice of the proposed rule change had
September 5, 2006.
not appeared in the Federal Register. At
BILLING CODE 8010–01–P
U.S.C. 78f.
4 15 U.S.C. 78f(b)(5).
[Release No. 34–54286; File No. SR–
NASDAQ–2006–028]
PO 00000
CFR 20.30-3(a)(12).
Frm 00067
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 Nasdaq has asked the Commission to waive the
30-day operative delay. See Rule 19b–4(f)(6)(iii). 17
CFR 240.19b–4(f)(6)(iii).
6 On August 1, 2006, Nasdaq began to operate as
a national securities exchange for purposes of
trading Nasdaq-listed securities.
2 17
E:\FR\FM\15AUN1.SGM
15AUN1
46956
Federal Register / Vol. 71, No. 157 / Tuesday, August 15, 2006 / Notices
that time, Commission Staff explained
that the proposed rule change had been
rejected on March 3, 2006. Because
Nasdaq Inc. never received notice of the
rejection, Nasdaq Inc. waited until the
30-day pre-operative waiting period
expired, and then implemented
FilterView and its fees as originally
proposed in April.
Nasdaq filed the instant proposed rule
change to allow the public the
opportunity to comment on FilterView
and its fees, despite the fact that the
service has been implemented since
April.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq established a new service
called FilterView that allows market
data distributors to receive a sub-set of
existing real-time data feed products to
control bandwidth and computer
processing costs. The text of the
proposed rule change is below.
Proposed new language is in italics;
there are no proposed deletions.7
7037. Nasdaq FilterView Service
The Nasdaq FilterView service shall
allow a Distributor to receive a sub-set
of an existing real-time data feed
distributed by Nasdaq. FilterView
service shall be available for a
subscription fee of $500 per month per
sub-set of data, in addition to the fees
associated with the relevant underlying
data feed. There shall be no incremental
user charges for distributors related to
use of the FilterView service.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on PROD1PC61 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.
7 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
www.complinet.com/nasdaq. These rules became
effective on August 1, 2006 when Nasdaq
commenced operations as a national securities
exchange for Nasdaq-listed securities.
VerDate Aug<31>2005
15:41 Aug 14, 2006
Jkt 208001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
General industry trends have driven a
significant increase in the rates of
market-data message traffic. For
example, since January 2004 the 15second peak message rate for TotalView,
Nasdaq’s full depth-of-book data feed
for Nasdaq-listed securities, has risen
over 190 percent. Other data feeds, most
notably in the options markets, are
experiencing similar rates of increase.
Nasdaq believes this trend is likely to
continue, if not accelerate, due to the
implementation of Regulation NMS and
other market changes that place an even
greater emphasis on automation.
As a result, distributors and brokers
that use and distribute real-time market
data have incurred significant
incremental costs. First, the
telecommunications bandwidth a firm
purchases must be increased to handle
the message traffic without material
increases in latency or dropped
information. Second, once the data is
received it must be processed, with
resulting hardware expenses. In some
cases, the cost of receiving and
processing real-time data can surpass
the cost of the explicit fees charged for
receiving such data. As a result, brokers
and distributors are seeking ways to
‘‘filter’’ the data they receive (i.e.,
reduce the amount of data received
without losing information necessary for
their trading activities). Any service that
can successfully filter the data without
impacting data performance or integrity
is considered valuable, given the
savings obtained from lower
telecommunications and hardware
costs.
To respond to this demand, Nasdaq
offers the Nasdaq FilterView service,
whereby Nasdaq provides a sub-set of
an existing data feed to distributors
seeking to limit the network and
processing costs of market data usage.
Specifically, FilterView offers a variety
of options to receive only a portion of
a pre-existing data feed. Original
offerings include pre-packaged portions
of existing feeds, such as a filtered
version of TotalView that only contains
Net Order Imbalance Indicator
information. Ultimately, clients may
select their own filtering parameters
(requesting to receive data only for
certain stocks or other criteria) for a
variety of data feeds, including data
feeds sourced from third parties.
Filtered data feeds are made available
through current Nasdaq data
dissemination architecture. Pricing for
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
filtered data feeds is pursuant to the
existing fee structure applicable to the
relevant feed, plus an additional fee of
$500 per month, per sub-set of data. For
example, a firm that requested a filtered
version of TotalView would pay the
TotalView distributor fee (currently
between $1,000 and $5,000 per month)
plus an additional fee of $500 per
month for receiving the data in filtered
format. There is no incremental user
fees assessed for distribution of data
feeds provided through FilterView to
end users, though normal per user fees
for the relevant data feed continue to
apply.
The Nasdaq FilterView service is an
entirely voluntary service. Firms can
either take the feed as it exists currently
for the fee that is already in place, or
they can voluntarily choose to filter out
some of the elements for the added fee
for their own pricing or competitive
reasons.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,8 in
general, and with Sections 6(b)(4) 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 Nasdaq’s facilities.
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 if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
8 15
9 15
E:\FR\FM\15AUN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
15AUN1
Federal Register / Vol. 71, No. 157 / Tuesday, August 15, 2006 / Notices
46957
of the Act 10 and Rule 19b–4(f)(6)
thereunder.11
At any time within 60 days of the
filing of such 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.
Nasdaq has requested that the
Commission waive the 30-day operative
delay contained in Rule 19b–4(f)(6)(iii)
under the Act.12 Because FilterView and
its fees have been in operation since
April 2006 and imposition of the 30-day
operative delay could result in the
discontinuation of current services, the
Commission believes such waiver is
consistent with the protection of
investors and the public interest.
Accordingly, the Commission
designates the proposal to be effective
and operative upon filing with the
Commission.13
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of 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–2006–028 and
should be submitted on or before
September 5, 2006.
objects at the Milwaukee Art Museum,
Milwaukee, Wisconsin, from on or
about September 13, 2006, until on or
about January 1, 2007, and at possible
additional venues yet to be determined,
is in the national interest. Public Notice
of these Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Paul
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202/453–8052). The
address is U.S. Department of State, SA–
44, 301 4th Street, SW., Room 700,
Washington, DC 20547–0001.
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Nancy M. Morris,
Secretary.
[FR Doc. E6–13319 Filed 8–14–06; 8:45 am]
DEPARTMENT OF STATE
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–2006–028 on the
subject line.
DEPARTMENT OF STATE
mstockstill on PROD1PC61 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2006–028. 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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
11 17
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15:41 Aug 14, 2006
Jkt 208001
BILLING CODE 8010–01–P
[Public Notice 5496]
Culturally Significant Objects Imported
for Exhibition Determinations:
‘‘Biedermeier: The Invention of
Simplicity’’
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
included in the exhibition
‘‘Biedermeier: The Invention of
Simplicity’’, imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00069
Fmt 4703
Sfmt 4703
Dated: August 5, 2006.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. E6–13353 Filed 8–14–06; 8:45 am]
BILLING CODE 4710–05–P
[Public Notice 5495]
Culturally Significant Objects Imported
for Exhibition Determinations:
Canaletto’s ‘‘Venedig: at the Mouth of
the Grand Canal’’ and ‘‘Venice: The
Grand Canal’’
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that two objects to be
exhibited, Canaletto’s ‘‘Venedig: at the
mouth of the Grand Canal’’ and
‘‘Venice: The Grand Canal,’’ imported
from abroad for temporary exhibition
within the United States, are of cultural
significance. The objects are imported
pursuant to a loan agreement with the
foreign owner or custodian. I also
determine that the exhibition or display
of the objects at The Getty Center, Los
Angeles, California, from on or about
January 2, 2007, until on or about July
15, 2007, and at possible additional
venues yet to be determined, is in the
national interest. Public Notice of these
Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
E:\FR\FM\15AUN1.SGM
15AUN1
Agencies
[Federal Register Volume 71, Number 157 (Tuesday, August 15, 2006)]
[Notices]
[Pages 46955-46957]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13319]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54286; File No. SR-NASDAQ-2006-028]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Establish a New Service Called FilterView
August 8, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 4, 2006, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by Nasdaq. Nasdaq has filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of
the Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposal effective upon filing with the Commission.\5\ 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).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ Nasdaq has asked the Commission to waive the 30-day
operative delay. See Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-
4(f)(6)(iii).
---------------------------------------------------------------------------
On February 22, 2006, The Nasdaq Stock Market, Inc. (Nasdaq
Inc.''), as a subsidiary of the National Association of Securities
Dealers, Inc. (``NASD''), initially provided notice pursuant to Rule
19b-4(f)(6)(iii) under the Act of its intent to file the proposed rule
change as an NASD rule. NASD, through Nasdaq Inc., then filed the
proposed rule change (SR-NASD-2006-034) on March 3, 2006, and received
confirmation through the electronic filing system that the proposed
rule change was received by the Commission.\6\ Later that same day,
after reviewing the proposed rule change, the Commission rejected the
proposed rule change because it contained inconsistencies that rendered
the proposed rule change unacceptable. Due to a systems error that is
still being investigated, Nasdaq Inc. did not receive notice that the
Commission had rejected the proposed rule change. On July 24, 2006,
Nasdaq Inc. contacted Commission Staff to inquire as to why notice of
the proposed rule change had not appeared in the Federal Register. At
[[Page 46956]]
that time, Commission Staff explained that the proposed rule change had
been rejected on March 3, 2006. Because Nasdaq Inc. never received
notice of the rejection, Nasdaq Inc. waited until the 30-day pre-
operative waiting period expired, and then implemented FilterView and
its fees as originally proposed in April.
---------------------------------------------------------------------------
\6\ On August 1, 2006, Nasdaq began to operate as a national
securities exchange for purposes of trading Nasdaq-listed
securities.
---------------------------------------------------------------------------
Nasdaq filed the instant proposed rule change to allow the public
the opportunity to comment on FilterView and its fees, despite the fact
that the service has been implemented since April.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq established a new service called FilterView that allows
market data distributors to receive a sub-set of existing real-time
data feed products to control bandwidth and computer processing costs.
The text of the proposed rule change is below. Proposed new language is
in italics; there are no proposed deletions.\7\
---------------------------------------------------------------------------
\7\ Changes are marked to the rule text that appears in the
electronic manual of Nasdaq found at www.complinet.com/nasdaq. These
rules became effective on August 1, 2006 when Nasdaq commenced
operations as a national securities exchange for Nasdaq-listed
securities.
---------------------------------------------------------------------------
7037. Nasdaq FilterView Service
The Nasdaq FilterView service shall allow a Distributor to receive
a sub-set of an existing real-time data feed distributed by Nasdaq.
FilterView service shall be available for a subscription fee of $500
per month per sub-set of data, in addition to the fees associated with
the relevant underlying data feed. There shall be no incremental user
charges for distributors related to use of the FilterView service.
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
General industry trends have driven a significant increase in the
rates of market-data message traffic. For example, since January 2004
the 15-second peak message rate for TotalView, Nasdaq's full depth-of-
book data feed for Nasdaq-listed securities, has risen over 190
percent. Other data feeds, most notably in the options markets, are
experiencing similar rates of increase. Nasdaq believes this trend is
likely to continue, if not accelerate, due to the implementation of
Regulation NMS and other market changes that place an even greater
emphasis on automation.
As a result, distributors and brokers that use and distribute real-
time market data have incurred significant incremental costs. First,
the telecommunications bandwidth a firm purchases must be increased to
handle the message traffic without material increases in latency or
dropped information. Second, once the data is received it must be
processed, with resulting hardware expenses. In some cases, the cost of
receiving and processing real-time data can surpass the cost of the
explicit fees charged for receiving such data. As a result, brokers and
distributors are seeking ways to ``filter'' the data they receive
(i.e., reduce the amount of data received without losing information
necessary for their trading activities). Any service that can
successfully filter the data without impacting data performance or
integrity is considered valuable, given the savings obtained from lower
telecommunications and hardware costs.
To respond to this demand, Nasdaq offers the Nasdaq FilterView
service, whereby Nasdaq provides a sub-set of an existing data feed to
distributors seeking to limit the network and processing costs of
market data usage. Specifically, FilterView offers a variety of options
to receive only a portion of a pre-existing data feed. Original
offerings include pre-packaged portions of existing feeds, such as a
filtered version of TotalView that only contains Net Order Imbalance
Indicator information. Ultimately, clients may select their own
filtering parameters (requesting to receive data only for certain
stocks or other criteria) for a variety of data feeds, including data
feeds sourced from third parties.
Filtered data feeds are made available through current Nasdaq data
dissemination architecture. Pricing for filtered data feeds is pursuant
to the existing fee structure applicable to the relevant feed, plus an
additional fee of $500 per month, per sub-set of data. For example, a
firm that requested a filtered version of TotalView would pay the
TotalView distributor fee (currently between $1,000 and $5,000 per
month) plus an additional fee of $500 per month for receiving the data
in filtered format. There is no incremental user fees assessed for
distribution of data feeds provided through FilterView to end users,
though normal per user fees for the relevant data feed continue to
apply.
The Nasdaq FilterView service is an entirely voluntary service.
Firms can either take the feed as it exists currently for the fee that
is already in place, or they can voluntarily choose to filter out some
of the elements for the added fee for their own pricing or competitive
reasons.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\8\ in general, and with
Sections 6(b)(4) 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 Nasdaq's facilities.
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\8\ 15 U.S.C. 78f.
\9\ 15 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 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 if consistent with
the protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A)
[[Page 46957]]
of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such 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.
Nasdaq has requested that the Commission waive the 30-day operative
delay contained in Rule 19b-4(f)(6)(iii) under the Act.\12\ Because
FilterView and its fees have been in operation since April 2006 and
imposition of the 30-day operative delay could result in the
discontinuation of current services, the Commission believes such
waiver is consistent with the protection of investors and the public
interest. Accordingly, the Commission designates the proposal to be
effective and operative upon filing with the Commission.\13\
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\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay of
this proposal, 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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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-2006-028 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2006-028. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of 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-2006-028 and should be submitted on or before
September 5, 2006.
\14\ 17 CFR 200.30-3(a)(12).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
Nancy M. Morris,
Secretary.
[FR Doc. E6-13319 Filed 8-14-06; 8:45 am]
BILLING CODE 8010-01-P