Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change as Amended Regarding Pricing for Non-Members Using the New Nasdaq Workstation and Weblink ACT, 58027-58029 [E6-16117]
Download as PDF
Federal Register / Vol. 71, No. 190 / Monday, October 2, 2006 / Notices
submission of trade reports. As such, as
Nasdaq begins to operate as a national
securities exchange, Weblink ACT
provides basic front-end access to the
Trade Reporting Facility (‘‘TRF’’)
operated by Nasdaq and the National
Association of Securities Dealers, Inc.
(‘‘NASD’’),7 as well as access to ACT
functionality still offered by Nasdaq Inc.
under authority delegated by NASD.
Since the introduction of NNW and
Weblink ACT, a number of former NWII
users have opted to move to Weblink
ACT rather than NNW, reflecting a
desire to use these Web-based products
exclusively for trade reporting, rather
than active trading. Accordingly,
Nasdaq proposes to increase the
comparatively low fees for Weblink
ACT to ensure that, as between NNW
and Weblink ACT, fees are allocated
appropriately to allow recovery of
Nasdaq’s costs. Specifically, the current
$150 fee for Weblink ACT users that
report a daily average of 20 or fewer
trades during a month is being raised to
$200, while the $300 fee for higher
volume users is being increased to $375.
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 Section 6(b)(4) of the
Act,9 in particular, in that the proposed
rule change provides for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system which Nasdaq
operates or controls. The proposed rule
change reflects demand patterns for
NNW and Weblink ACT and is designed
to ensure that as between the products,
fees are allocated appropriately to allow
recovery of Nasdaq’s costs.
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.
rmajette on PROD1PC67 with NOTICES1
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.
7 Nasdaq expects that, consistent with current
practice, most NASD members seeking access to the
TRF would use a proprietary front-end system
developed by the broker-dealer or a product offered
by a service bureau. Weblink ACT is designed as
a basic front-end system for low volume users.
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(4).
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15:07 Sep 29, 2006
Jkt 211001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 10 and Rule
19b–4(f)(2) thereunder,11 in that the
proposed rule change establishes or
changes a member due, fee, or other
charge. At any time within 60 days of
the filing of the proposed rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
58027
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–2006–025 and
should be submitted on or before
October 23, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–16115 Filed 9–29–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54501; File No. SR–
NASDAQ–2006–026]
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–2006–025 on the
subject line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Order Granting Accelerated
Approval of Proposed Rule Change as
Amended Regarding Pricing for NonMembers Using the New Nasdaq
Workstation and Weblink ACT
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–2006–025. 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
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 August 1,
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
amended the proposed rule change on
September 20, 2006.3 The Commission
is publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons,
and simultaneously granting accelerated
approval of the proposed rule change, as
amended.
September 25, 2006.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
This proposed rule change relates to
the pricing for non-Nasdaq members
using Nasdaq’s New Nasdaq
Workstation (‘‘NNW’’) and Weblink
ACT products. The proposal will apply
to these non-members the same changes
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Amendment No. 1.
1 15
10 15
11 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00111
Fmt 4703
Sfmt 4703
E:\FR\FM\02OCN1.SGM
02OCN1
58028
Federal Register / Vol. 71, No. 190 / Monday, October 2, 2006 / Notices
that Nasdaq is instituting for Nasdaq
members in SR–NASDAQ–2006–025.
Nasdaq seeks to implement this
proposed rule change retroactively as of
August 1, 2006. The text of the proposed
rule change is available at the
Commission’s Public Reference Room,
at Nasdaq, and at https://
www.nasdaq.com.4
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq included statements concerning
the purpose of and basis for the
proposed rule change. The text of these
statements may be examined at the
places specified in Item III 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
rmajette on PROD1PC67 with NOTICES1
1. Purpose
In SR–NASDAQ–2006–025, Nasdaq
amended Rule 7015 to change Nasdaq
member fees associated with its Webbased NNW and Weblink ACT products.
Since the NNW’s inception as a
replacement for the Nasdaq Workstation
II (‘‘NWII’’) last year, the fee for the
NNW has been $435 per user per month,
plus $90 per month for data feeds
included with the NNW, for a total cost
of $525 per user per month. In SR–
NASDAQ–2006–025, Nasdaq reduced
the fee to $475 per user per month,
including the cost of the data feeds
provided with the NNW. The change is
designed to enhance the
competitiveness of the NNW in contrast
to front-end applications provided by
broker-dealers and service bureaus, and,
as discussed below, also reflects
decreasing demand for the product.
Weblink ACT, also referred to as
Nasdaq Workstation Post Trade, is a
Web-based application used for
submission of trade reports. As such, as
the Nasdaq Exchange begins to operate
as a national securities exchange,
Weblink ACT provides basic front-end
4 Changes to the proposed rule text are marked to
the rule text that appears in the electronic Nasdaq
Manual found at www.complinet.com/nasd.com, as
further amended on an immediately effective basis
by SR–NASDAQ–2006–024 and SR–NASDAQ–
2006–025. Because the NNW and Weblink ACT are
also used with respect to the quotation, execution,
and trade reporting systems operated by The
Nasdaq Stock Market, Inc. (‘‘Nasdaq Inc.’’) with
respect to non-Nasdaq securities, Nasdaq Inc. is also
filing this proposed rule change as a modification
to NASD Rule 7010(f). See SR–NASD–2006–095.
VerDate Aug<31>2005
15:07 Sep 29, 2006
Jkt 211001
access to the Trade Reporting Facility
(‘‘TRF’’) operated by Nasdaq and the
NASD,5 as well as access to ACT
functionality still offered by Nasdaq Inc.
under authority delegated by NASD.
Since the introduction of NNW and
Weblink ACT, a number of former NWII
users have opted to move to Weblink
ACT rather than NNW, reflecting a
desire to use these Web-based products
exclusively for trade reporting, rather
than active trading. Accordingly, in SR–
NASDAQ–2006–025, Nasdaq increased
the comparatively low fees for Weblink
ACT to ensure that, as between NNW
and Weblink ACT, fees are allocated
appropriately to allow recovery of
Nasdaq’s costs. Specifically, the current
$150 fee for Weblink ACT users that
report a daily average of 20 or fewer
trades a month is being raised to $200,
while the $300 fee for higher volume
users is being increased to $375.
Nasdaq is submitting this filing to
apply the foregoing changes to nonNasdaq members using the NNW and
Weblink ACT. These non-members are
comprised primarily of service bureaus,
while in the case of Weblink ACT, they
would also include NASD members that
are not members of Nasdaq but that
submit trade reports to the TRF.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(4) of the
Act,7 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
Nasdaq operates or controls. The
proposed rule change applies to nonmembers that use NNW and Weblink
ACT a fee change that is being
implemented for Nasdaq members.
Accordingly, the proposed rule change
promotes an equitable allocation of fees
between members and non-members
using these services.
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.
5 Nasdaq expects that, consistent with current
practice, most NASD members seeking access to the
TRF would use a proprietary front-end system
developed by the broker-dealer or a product offered
by a service bureau. Weblink ACT is designed as
a basic front-end system for low volume users.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
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. 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–2006–026 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2006–026. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal offices of 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–2006–026 and
should be submitted on or before
October 23, 2006.
E:\FR\FM\02OCN1.SGM
02OCN1
Federal Register / Vol. 71, No. 190 / Monday, October 2, 2006 / Notices
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
SECURITIES AND EXCHANGE
COMMISSION
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to an exchange.8 Specifically,
the Commission believes that the
proposed rule change is consistent with
Section 6(b)(4) of the Act,9 which
requires that the rules of an exchange
provide for the equitable allocation of
reasonable dues, fees, and other charges
among members and issuers and other
persons using any facilities or system
which it operates or controls.
The Commission notes that this
proposal would permit the schedule for
non-Nasdaq members to mirror the
schedule applicable to Nasdaq members
that became effective on August 1, 2006,
pursuant to SR–NASDAQ–2006–025.
The Commission finds good cause for
approving the proposed rule change
prior to the 30th day after the date of
publication of the notice thereof in the
Federal Register. The proposed fees for
non-Nasdaq members are identical to
those in SR–NASDAQ–2006–025, which
implemented those fees for Nasdaq
members and which became effective as
of August 1, 2006. The Commission
notes that the instant proposed rule
change will promote consistency in
Nasdaq’s fee schedule by applying
simultaneously the same pricing
schedule for Nasdaq members and nonNasdaq members alike. Therefore, the
Commission finds that there is good
cause, consistent with Section 19(b)(2)
of the Act, to approve the proposed rule
change, as amended, on an accelerated
basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NASDAQ–
2006–026), as amended, be, and hereby
is, approved on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–16117 Filed 9–29–06; 8:45 am]
rmajette on PROD1PC67 with NOTICES1
BILLING CODE 8010–01–P
8 In approving the proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(4).
10 17 CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:07 Sep 29, 2006
Jkt 211001
[Release No. 34–54498; File No. SR–NASD–
2006–095]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change and
Amendment No. 1 Thereto Regarding
Fees for Non-NASD Member
Subscribers to the New Nasdaq
Workstation and Weblink ACT
September 25, 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 August 1,
2006, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by Nasdaq. Nasdaq
amended the proposed rule change on
September 20, 2006.3 The Commission
is publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons,
and simultaneously granting accelerated
approval of the proposed rule change, as
amended.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify fees for
non-NASD member subscribers to the
New Nasdaq Workstation (‘‘NNW’’) and
Weblink ACT. The proposed rule
change will apply to these non-members
the same changes that Nasdaq is
instituting for members.4 Nasdaq seeks
to implement the proposed rule change
retroactively as of August 1, 2006. The
text of the proposed rule change is
available at the Commission’s Public
Reference Room, at NASD, and at
https://www.nasd.com.5
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Amendment No. 1.
4 See SR–NASD–2006–094.
5 Changes are marked to the rule text that appears
in the electronic NASD Manual found at https://
www.nasd.com, as modified on an immediately
effective basis by SR–NASD–2006–094. Nasdaq is
filing this proposed rule change because the NNW
and Weblink ACT may be used in limited
circumstances by service bureaus that are not NASD
members with respect to the quotation, execution,
and trade reporting systems operated by Nasdaq
with respect to non-Nasdaq securities. The
NASDAQ Stock Market LLC (‘‘Nasdaq Exchange’’)
is also filing a comparable modification to Nasdaq
Exchange Rule 7015.
2 17
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
58029
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq included statements concerning
the purpose of and basis for the
proposed rule change. The text of these
statements may be examined at the
places specified in Item III 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
In SR–NASD–2006–094, Nasdaq
amended Rule 7010 to change NASD
member fees associated with its Webbased New Nasdaq Workstation
(‘‘NNW’’) and Weblink ACT products.
Since the NNW’s inception as a
replacement for the Nasdaq Workstation
II (‘‘NWII’’) last year, the fee for the
NNW had been $435 per user per
month, plus $90 per month for data
feeds included with the NNW, for a total
cost of $525 per user per month. In SR–
NASD–2006–094, Nasdaq reduced the
fee to $475 per user per month,
including the cost of the data feeds
provided with the NNW. The change is
designed to enhance the
competitiveness of the NNW in contrast
to front-end applications provided by
broker-dealers and service bureaus, and,
as discussed below, also reflects
decreasing demand for the product.
Weblink ACT, also referred to as
Nasdaq Workstation Post Trade, is a
Web-based application used for
submission of trade reports. As such, as
the Nasdaq Exchange begins to operate
as a national securities exchange,
Weblink ACT provides basic front-end
access to the Trade Reporting Facility
(‘‘TRF’’) operated by Nasdaq and the
NASD,6 as well as access to ACT
functionality still offered by Nasdaq
under authority delegated by NASD.
Since the introduction of NNW and
Weblink ACT, a number of former NWII
users have opted to move to Weblink
ACT rather than NNW, reflecting a
desire to use these Web-based products
exclusively for trade reporting, rather
than active trading. Accordingly, in SR–
NASD–2006–094, Nasdaq increased the
6 Nasdaq expects that, consistent with current
practice, most NASD members seeking access to the
TRF would use a proprietary front-end system
developed by the broker-dealer or a product offered
by a service bureau. Weblink ACT is designed as
a basic front-end system for low volume users.
E:\FR\FM\02OCN1.SGM
02OCN1
Agencies
[Federal Register Volume 71, Number 190 (Monday, October 2, 2006)]
[Notices]
[Pages 58027-58029]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16117]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54501; File No. SR-NASDAQ-2006-026]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change as Amended Regarding Pricing for Non-Members Using the New
Nasdaq Workstation and Weblink ACT
September 25, 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 August 1, 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 amended the proposed rule change on
September 20, 2006.\3\ The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons, and simultaneously granting accelerated approval of
the proposed rule change, as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Amendment No. 1.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
This proposed rule change relates to the pricing for non-Nasdaq
members using Nasdaq's New Nasdaq Workstation (``NNW'') and Weblink ACT
products. The proposal will apply to these non-members the same changes
[[Page 58028]]
that Nasdaq is instituting for Nasdaq members in SR-NASDAQ-2006-025.
Nasdaq seeks to implement this proposed rule change retroactively as of
August 1, 2006. The text of the proposed rule change is available at
the Commission's Public Reference Room, at Nasdaq, and at https://
www.nasdaq.com.\4\
---------------------------------------------------------------------------
\4\ Changes to the proposed rule text are marked to the rule
text that appears in the electronic Nasdaq Manual found at
www.complinet.com/nasd.com, as further amended on an immediately
effective basis by SR-NASDAQ-2006-024 and SR-NASDAQ-2006-025.
Because the NNW and Weblink ACT are also used with respect to the
quotation, execution, and trade reporting systems operated by The
Nasdaq Stock Market, Inc. (``Nasdaq Inc.'') with respect to non-
Nasdaq securities, Nasdaq Inc. is also filing this proposed rule
change as a modification to NASD Rule 7010(f). See SR-NASD-2006-095.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Nasdaq included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item III 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
In SR-NASDAQ-2006-025, Nasdaq amended Rule 7015 to change Nasdaq
member fees associated with its Web-based NNW and Weblink ACT products.
Since the NNW's inception as a replacement for the Nasdaq Workstation
II (``NWII'') last year, the fee for the NNW has been $435 per user per
month, plus $90 per month for data feeds included with the NNW, for a
total cost of $525 per user per month. In SR-NASDAQ-2006-025, Nasdaq
reduced the fee to $475 per user per month, including the cost of the
data feeds provided with the NNW. The change is designed to enhance the
competitiveness of the NNW in contrast to front-end applications
provided by broker-dealers and service bureaus, and, as discussed
below, also reflects decreasing demand for the product.
Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is
a Web-based application used for submission of trade reports. As such,
as the Nasdaq Exchange begins to operate as a national securities
exchange, Weblink ACT provides basic front-end access to the Trade
Reporting Facility (``TRF'') operated by Nasdaq and the NASD,\5\ as
well as access to ACT functionality still offered by Nasdaq Inc. under
authority delegated by NASD.
---------------------------------------------------------------------------
\5\ Nasdaq expects that, consistent with current practice, most
NASD members seeking access to the TRF would use a proprietary
front-end system developed by the broker-dealer or a product offered
by a service bureau. Weblink ACT is designed as a basic front-end
system for low volume users.
---------------------------------------------------------------------------
Since the introduction of NNW and Weblink ACT, a number of former
NWII users have opted to move to Weblink ACT rather than NNW,
reflecting a desire to use these Web-based products exclusively for
trade reporting, rather than active trading. Accordingly, in SR-NASDAQ-
2006-025, Nasdaq increased the comparatively low fees for Weblink ACT
to ensure that, as between NNW and Weblink ACT, fees are allocated
appropriately to allow recovery of Nasdaq's costs. Specifically, the
current $150 fee for Weblink ACT users that report a daily average of
20 or fewer trades a month is being raised to $200, while the $300 fee
for higher volume users is being increased to $375.
Nasdaq is submitting this filing to apply the foregoing changes to
non-Nasdaq members using the NNW and Weblink ACT. These non-members are
comprised primarily of service bureaus, while in the case of Weblink
ACT, they would also include NASD members that are not members of
Nasdaq but that submit trade reports to the TRF.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(4) of the Act,\7\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which Nasdaq operates or controls. The proposed rule change applies to
non-members that use NNW and Weblink ACT a fee change that is being
implemented for Nasdaq members. Accordingly, the proposed rule change
promotes an equitable allocation of fees between members and non-
members using these services.
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\6\ 15 U.S.C. 78f.
\7\ 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. 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-2006-026 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2006-026. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of the
filing also will be available for inspection and copying at the
principal offices of 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-2006-026 and should be submitted on or before
October 23, 2006.
[[Page 58029]]
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to an exchange.\8\ Specifically, the Commission
believes that the proposed rule change is consistent with Section
6(b)(4) of the Act,\9\ which requires that the rules of an exchange
provide for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facilities or system which it operates or controls.
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\8\ In approving the proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. See 15 U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(4).
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The Commission notes that this proposal would permit the schedule
for non-Nasdaq members to mirror the schedule applicable to Nasdaq
members that became effective on August 1, 2006, pursuant to SR-NASDAQ-
2006-025.
The Commission finds good cause for approving the proposed rule
change prior to the 30th day after the date of publication of the
notice thereof in the Federal Register. The proposed fees for non-
Nasdaq members are identical to those in SR-NASDAQ-2006-025, which
implemented those fees for Nasdaq members and which became effective as
of August 1, 2006. The Commission notes that the instant proposed rule
change will promote consistency in Nasdaq's fee schedule by applying
simultaneously the same pricing schedule for Nasdaq members and non-
Nasdaq members alike. Therefore, the Commission finds that there is
good cause, consistent with Section 19(b)(2) of the Act, to approve the
proposed rule change, as amended, on an accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-NASDAQ-2006-026), as amended, be, and
hereby is, approved on an accelerated basis.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
[FR Doc. E6-16117 Filed 9-29-06; 8:45 am]
BILLING CODE 8010-01-P