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, 58029-58030 [E6-16166]

Download as PDF 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 58030 Federal Register / Vol. 71, No. 190 / Monday, October 2, 2006 / Notices 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. Nasdaq is filing this proposed rule change to apply the foregoing changes to non-NASD members subscribing to these products. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 15A of the Act,7 in general, and with Section 15A(b)(5) of the Act,8 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls. The proposed rule change applies to non-members a fee change that is being implemented for NASD 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. 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: rmajette on PROD1PC67 with NOTICES1 Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2006–095 on the subject line. 7 15 U.S.C. 78o–3 8 15 U.S.C. 78o–3(b)(5). VerDate Aug<31>2005 15:07 Sep 29, 2006 Jkt 211001 Paper Comments The Commission notes that this proposal would permit the schedule for • Send paper comments in triplicate non-NASD members to mirror the to Nancy M. Morris, Secretary, schedule applicable to NASD members Securities and Exchange Commission, that became effective on August 1, 2006, 100 F Street, NE., Washington, DC pursuant to SR–NASD–2006–094. 20549–1090. The Commission finds good cause for All submissions should refer to File approving the proposed rule change, as Number NASD–2006–095. This file amended, prior to the 30th day after the number should be included on the date of publication of the notice thereof subject line if e-mail is used. To help the in the Federal Register. The proposed Commission process and review your fees for non-NASD members are comments more efficiently, please use identical to those in SR–NASD–2006– only one method. The Commission will 094, which implemented those fees for post all comments on the Commission’s NASD members and which became effective as of August 1, 2006. The Internet Web site (https://www.sec.gov/ Commission notes that the instant rules/sro.shtml). Copies of the proposed rule change will promote submission, all subsequent consistency in NASD’s fee schedule by amendments, all written statements applying simultaneously the same with respect to the proposed rule pricing schedule for NASD members change that are filed with the and non-NASD members alike. Commission, and all written Therefore, the Commission finds that communications relating to the there is good cause, consistent with proposed rule change between the Commission and any person, other than Section 19(b)(2) of the Act, to approve the proposed rule change on an those that may be withheld from the accelerated basis. public in accordance with the provisions of 5 U.S.C. 552, will be V. Conclusion available for inspection and copying in It is therefore ordered, pursuant to the Commission’s Public Reference Section 19(b)(2) of the Act, that the Room. Copies of the filing also will be proposed rule change, as amended (SR– available for inspection and copying at NASD–2006–095), be, and hereby is, the principal offices of NASD. All approved on an accelerated basis. comments received will be posted without change; the Commission does For the Commission, by the Division of Market Regulation, pursuant to delegated not edit personal identifying authority.11 information from submissions. You Nancy M. Morris, should submit only information that you wish to make available publicly. All Secretary. submissions should refer to File [FR Doc. E6–16166 Filed 9–29–06; 8:45 am] Number SR–NASD–2006–095 and BILLING CODE 8010–01–P should be submitted on or before October 23, 2006. SECURITIES AND EXCHANGE IV. Commission’s Findings and Order COMMISSION Granting Accelerated Approval of [Release No. 34–54499; File No. SR–NASD– 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 a self-regulatory organization.9 Specifically, the Commission finds that the proposed rule change is consistent with Section 15A(b)(5) of the Act,10 which requires that the rules of a self-regulatory organization 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. 9 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). 10 15 U.S.C. 78o–3(b)(5). PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 2006–094] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Regarding Fees for the New Nasdaq Workstation and Weblink ACT September 25, 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 1, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’), through its subsidiary, The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’), filed 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\02OCN1.SGM 02OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 190 (Monday, October 2, 2006)]
[Notices]
[Pages 58029-58030]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16166]


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

SECURITIES AND EXCHANGE COMMISSION

[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.
---------------------------------------------------------------------------

    \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

    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\
---------------------------------------------------------------------------

    \4\ See SR-NASD-2006-094.
    \5\ Changes are marked to the rule text that appears in the 
electronicNASD 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.
---------------------------------------------------------------------------

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 Web-based 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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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

[[Page 58030]]

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. Nasdaq is filing this proposed rule change to 
apply the foregoing changes to non-NASD members subscribing to these 
products.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act,\7\ in general, and with 
Section 15A(b)(5) of the Act,\8\ in particular, in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using any facility or 
system which the NASD operates or controls. The proposed rule change 
applies to non-members a fee change that is being implemented for NASD 
members. Accordingly, the proposed rule change promotes an equitable 
allocation of fees between members and non-members using these 
services.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3
    \8\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASD-2006-095 on the subject line.

Paper Comments

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

All submissions should refer to File Number NASD-2006-095. 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 NASD. All comments received will be posted without change; 
the Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NASD-2006-095 and should be submitted on or before October 23, 2006.

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 a self-regulatory organization.\9\ 
Specifically, the Commission finds that the proposed rule change is 
consistent with Section 15A(b)(5) of the Act,\10\ which requires that 
the rules of a self-regulatory organization 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.
---------------------------------------------------------------------------

    \9\ 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).
    \10\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

    The Commission notes that this proposal would permit the schedule 
for non-NASD members to mirror the schedule applicable to NASD members 
that became effective on August 1, 2006, pursuant to SR-NASD-2006-094.
    The Commission finds good cause for approving the proposed rule 
change, as amended, prior to the 30th day after the date of publication 
of the notice thereof in the Federal Register. The proposed fees for 
non-NASD members are identical to those in SR-NASD-2006-094, which 
implemented those fees for NASD members and which became effective as 
of August 1, 2006. The Commission notes that the instant proposed rule 
change will promote consistency in NASD's fee schedule by applying 
simultaneously the same pricing schedule for NASD members and non-NASD 
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 on an accelerated basis.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change, as amended (SR-NASD-2006-095), be, and 
hereby is, approved on an accelerated basis. 
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
Nancy M. Morris,
Secretary.
[FR Doc. E6-16166 Filed 9-29-06; 8:45 am]
BILLING CODE 8010-01-P

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