Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Pricing for NASD Members Using ITS/CAES, Brut and Inet, 65862-65863 [E6-18959]
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65862
Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
and operative upon filing with the
Commission.12
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:
sroberts on PROD1PC70 with NOTICES
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–2006–121 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–NASD–2006–121. 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 NASD. All
comments received will be posted
without change; the Commission does
12 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. See
15 U.S.C. 78c(f).
VerDate Aug<31>2005
16:26 Nov 08, 2006
Jkt 211001
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–2006–121 and
should be submitted on or before
November 30, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E6–18957 Filed 11–8–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54695; File No. SR–NASD–
2006–116]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify Pricing for
NASD Members Using ITS/CAES, Brut
and Inet
November 2, 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
September 29, 2006, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’), through its subsidiary, The
Nasdaq Stock Market, Inc. (‘‘Nasdaq’’),
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by
Nasdaq. Nasdaq submitted the proposed
rule change under Section 19(b)(3)(A) of
the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify the
pricing for NASD members using ITS/
CAES, Brut, and Inet. Nasdaq
implemented the proposed rule change
on October 2, 2006. The text of the
proposed rule change is available on the
13 17
CFR 200.30–3(a)(12).
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)(2).
1 15
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
Nasdaq’s Web site at https://
www.nasdaq.com, at Nasdaq’s Office of
the Secretary and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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
In response to a recently announced
pricing change by NYSE Arca, Inc.
(‘‘NYSE Arca’’) 5 and to better reflect
other pre-existing NYSE Arca charges,
Nasdaq is instituting a price change for
orders in non-Nasdaq exchange-listed
securities routed to NYSE Arca for
execution. Specifically, most orders in
non-Nasdaq securities routed to NYSE
Arca will be assessed a routing fee of
$0.0028 per share executed; the
exception will be for orders for
exchange-traded funds routed outside of
the Intermarket Trading System
(‘‘ITS’’),6 for which the fee will remain
$0.003 per share executed. By contrast,
the applicable fee had been $0.001 per
share executed for orders in securities
other than exchange-traded funds and
$0.0007 per share executed for orders
routed through the ITS. The price
change reflects the higher costs that
Nasdaq expects to incur to access
liquidity at NYSE Arca.
To enhance the competitiveness of
Nasdaq’s DOT router to the NYSE,
Nasdaq is also instituting a cap of
$100,000 per month with respect to
orders routed through DOT that do not
attempt to execute against liquidity in
Nasdaq trading systems prior to routing
and that are not charged a fee by the
5 See Securities Exchange Act Release No. 54686
(November 1, 2006) (SR–NYSEArca–2006–68).
6 Since October 1, 2006, the effective date of the
‘‘Plan for the Purpose of Creating and Operating an
Intermarket Communications Linkage Pursuant to
Section 11A(a)(3)(B) of the Securities Exchange Act
of 1934’’ (‘‘Linkage Plan’’), connectivity between
markets is provided pursuant to the Linkage Plan.
The current ITS technology is used to effectuate
both the ITS Plan and Linkage Plan. Therefore, the
term ‘‘ITS’’ applies to the technology used to
effectuate both the ITS Plan and the Linkage Plan.
E:\FR\FM\09NON1.SGM
09NON1
Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
65863
NSYE specialist (also known as nonbillable orders). Nasdaq had previously
instituted a $60,000 per month cap for
non-billable orders that attempt to
execute in Nasdaq before routing.7
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 Section
15A of the Act,8 in general, and furthers
the objectives of Section 15A(b)(5) of the
Act,9 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which the
NASD operates or controls.
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–2006–116 on the
subject line.
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change and
Amendments No. 1 and 2 Thereto To
Expand the Scope of IM–2110–2
Relating To Trading Ahead of
Customer Limit Orders To Apply to All
OTC Equity Securities
Paper Comments
November 3, 2006.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Nasdaq has neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 10 and
subparagraph (f)(2) of Rule 19b–4
thereunder,11 because it establishes or
changes a due, fee, or other charge
imposed by the Nasdaq. 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.
sroberts on PROD1PC70 with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
7 The proposed rule change also deletes obsolete
rule language regarding fees charged to persons that
are not NASD members using Brut or Inet. Persons
who are not NASD members are no longer
permitted to use these systems for trading nonNasdaq securities. Similarly, persons who are not
members of The NASDAQ Stock Market LLC may
not use Brut or Inet to trade Nasdaq-listed
securities.
8 15 U.S.C. 78o–3.
9 15 U.S.C. 78o–3(b)(5).
10 15 U.S.C. 78s(b)(3)(a)(ii).
11 17 CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
16:26 Nov 08, 2006
Jkt 211001
[Release No. 34–54705; File No. SR–NASD–
2005–146]
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 December
9, 2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
All submissions should refer to File
Commission (‘‘SEC’’ or ‘‘Commission’’)
Number SR–NASD–2006–116. This file
the proposed rule change as described
number should be included on the
subject line if e-mail is used. To help the below in Items I, II, and III, which Items
have been prepared by NASD. On
Commission process and review your
September 26, 2006, NASD filed
comments more efficiently, please use
only one method. The Commission will Amendment No. 1 to the proposed rule
3
post all comments on the Commission’s change, and on October 19, 2006,
NASD filed Amendment No. 2 to the
Internet Web site (https://www.sec.gov/
proposed rule change.4 The Commission
rules/sro.shtml). Copies of the
is publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change,
amendments, all written statements
as amended, from interested persons.
with respect to the proposed rule
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
NASD is proposing to expand the
Commission and any person, other than scope of its Interpretive Material 2110–
those that may be withheld from the
2 relating to trading ahead of customer
public in accordance with the
limit orders to apply to all over-theprovisions of 5 U.S.C. 552, will be
counter (‘‘OTC’’) equity securities.
available for inspection and copying in
Below is the text of the proposed rule
the Commission’s Public Reference
change. Proposed new language is in
Room. Copies of such filing also will be italics; proposed deletions are in
available for inspection and copying at
brackets.
the principal offices of Nasdaq.
All comments received will be posted IM–2110–2. Trading Ahead of Customer
Limit Order
without change; the Commission does
not edit personal identifying
(a) General Application
information from submissions. You
To continue to ensure investor
should submit only information that
protection and enhance market quality,
you wish to make available publicly. All NASD’s Board of Governors is issuing
submissions should refer to File
an interpretation to NASD Rules dealing
Number SR–NASD–2006–116 and
with member firms’ treatment of their
should be submitted on or before
customer limit orders in NMS stocks
November 30, 2006.
and OTC equity [exchange-listed]
For the Commission, by the Division of
securities. This interpretation, which is
Market Regulation, pursuant to delegated
applicable from 9:30 a.m. to 6:30 p.m.
12
authority.
Eastern Time, will require members to
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Nancy M. Morris,
Secretary.
[FR Doc. E6–18959 Filed 11–8–06; 8:45 am]
BILLING CODE 8011–01–P
12 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00093
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 replaced and superseded the
original rule filing in its entirety.
4 Amendment No. 2 replaced and superseded the
amended rule filing in its entirety.
2 17
E:\FR\FM\09NON1.SGM
09NON1
]]>Agencies
[Federal Register Volume 71, Number 217 (Thursday, November 9, 2006)]
[Notices]
[Pages 65862-65863]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18959]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54695; File No. SR-NASD-2006-116]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Modify Pricing for NASD Members Using ITS/CAES, Brut and
Inet
November 2, 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 September 29, 2006, the National Association of Securities Dealers,
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by Nasdaq.
Nasdaq submitted the proposed rule change under Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
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)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify the pricing for NASD members using ITS/
CAES, Brut, and Inet. Nasdaq implemented the proposed rule change on
October 2, 2006. The text of the proposed rule change is available on
the Nasdaq's Web site at https://www.nasdaq.com, at Nasdaq's Office of
the Secretary and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
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
In response to a recently announced pricing change by NYSE Arca,
Inc. (``NYSE Arca'') \5\ and to better reflect other pre-existing NYSE
Arca charges, Nasdaq is instituting a price change for orders in non-
Nasdaq exchange-listed securities routed to NYSE Arca for execution.
Specifically, most orders in non-Nasdaq securities routed to NYSE Arca
will be assessed a routing fee of $0.0028 per share executed; the
exception will be for orders for exchange-traded funds routed outside
of the Intermarket Trading System (``ITS''),\6\ for which the fee will
remain $0.003 per share executed. By contrast, the applicable fee had
been $0.001 per share executed for orders in securities other than
exchange-traded funds and $0.0007 per share executed for orders routed
through the ITS. The price change reflects the higher costs that Nasdaq
expects to incur to access liquidity at NYSE Arca.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54686 (November 1,
2006) (SR-NYSEArca-2006-68).
\6\ Since October 1, 2006, the effective date of the ``Plan for
the Purpose of Creating and Operating an Intermarket Communications
Linkage Pursuant to Section 11A(a)(3)(B) of the Securities Exchange
Act of 1934'' (``Linkage Plan''), connectivity between markets is
provided pursuant to the Linkage Plan. The current ITS technology is
used to effectuate both the ITS Plan and Linkage Plan. Therefore,
the term ``ITS'' applies to the technology used to effectuate both
the ITS Plan and the Linkage Plan.
---------------------------------------------------------------------------
To enhance the competitiveness of Nasdaq's DOT router to the NYSE,
Nasdaq is also instituting a cap of $100,000 per month with respect to
orders routed through DOT that do not attempt to execute against
liquidity in Nasdaq trading systems prior to routing and that are not
charged a fee by the
[[Page 65863]]
NSYE specialist (also known as non-billable orders). Nasdaq had
previously instituted a $60,000 per month cap for non-billable orders
that attempt to execute in Nasdaq before routing.\7\
---------------------------------------------------------------------------
\7\ The proposed rule change also deletes obsolete rule language
regarding fees charged to persons that are not NASD members using
Brut or Inet. Persons who are not NASD members are no longer
permitted to use these systems for trading non-Nasdaq securities.
Similarly, persons who are not members of The NASDAQ Stock Market
LLC may not use Brut or Inet to trade Nasdaq-listed securities.
---------------------------------------------------------------------------
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
Section 15A of the Act,\8\ in general, and furthers the objectives of
Section 15A(b)(5) of the Act,\9\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which the NASD operates or controls.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78o-3.
\9\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Nasdaq has neither solicited nor received comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\11\ because it establishes or changes a due, fee, or other
charge imposed by the Nasdaq. 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(a)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2006-116 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-NASD-2006-116. 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 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-NASD-2006-116
and should be submitted on or before November 30, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-18959 Filed 11-8-06; 8:45 am]
BILLING CODE 8011-01-P
