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, 67179-67183 [E6-19516]
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Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 / Notices
the CQL is procompetitive in that it
increases the number of market
participants that may quote
electronically in a product. The purpose
of this filing is to increase the CQL in
the option class Research in Motion
(RIMM) from its current limit of 40 to
42.
RIMM is one of the most active equity
option classes traded on the Exchange,
and consistently ranks among the top
classes in national average daily trading
volume. Increasing the CQL in RIMM
options will enable the Exchange to
enhance the liquidity offered, thereby
offering deeper and more liquid
markets.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations under the
Act applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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 Exchange Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither received nor
solicited written comments on the
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
sroberts on PROD1PC70 with NOTICES
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act 9 and Rule 19b–
4(f)(1) thereunder,10 because it
constitutes a stated policy, practice, or
interpretation with respect to the
submitted to the SEC in a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act.’’ CBOE
Rule 8.3A.01(c).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(i).
10 17 CFR 240.19b–4(f)(1).
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17:10 Nov 17, 2006
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meaning, administration, or
enforcement of an existing rule.
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:
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–CBOE–2006–91 on the
subject line.
67179
Number SR–CBOE–2006–91 and should
be submitted on or before December 11,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–19518 Filed 11–17–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54742; File No. SR–NASD–
2006–122]
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 13, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on November
1, 2006, the National Association of
• Send paper comments in triplicate
Securities Dealers, Inc. (‘‘NASD’’),
to Nancy M. Morris, Secretary,
through its subsidiary, The Nasdaq
Securities and Exchange Commission,
Stock Market, Inc. (‘‘Nasdaq’’), filed
100 F Street, NE., Washington, DC
with the Securities and Exchange
20549–1090.
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–CBOE–2006–91. This file
Items I, II, and III below, which Items
number should be included on the
subject line if e-mail is used. To help the have been substantially prepared by
Nasdaq. Nasdaq filed the proposed rule
Commission process and review your
change pursuant to Section
comments more efficiently, please use
3
only one method. The Commission will 19(b)(3)(A)(ii) of the Act, and Rule
19b–4(f)(2) thereunder,4 which renders
post all comments on the Commission’s
the proposal effective upon filing with
Internet Web site (https://www.sec.gov/
the Commission. The Commission is
rules/sro.shtml). Copies of the
publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
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
Nasdaq proposes to modify the
Commission and any person, other than
pricing for NASD members using the
those that may be withheld from the
ITS/CAES System and the Brut and Inet
public in accordance with the
facilities (collectively, the ‘‘Nasdaq
provisions of 5 U.S.C. 552, will be
Facilities’’). Nasdaq states that it will
available for inspection and copying in
implement this rule change on
the Commission’s Public Reference
November 1, 2006. As indicated in the
Room. Copies of such filing also will be
rule text, portions of the rule change
available for inspection and copying at
would be in effect on a pilot basis,
the principal office of the CBOE. All
beginning November 1, 2006 and
comments received will be posted
continuing through November 30, 2006.
without change; the Commission does
not edit personal identifying
11 17 CFR 200.30–3(a)(12).
information from submissions. You
1 15 U.S.C. 78s(b)(1).
should submit only information that
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
you wish to make available publicly. All
4 17 CFR 240.19b–4(f)(2).
submissions should refer to File
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67180
Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 / Notices
The text of the proposed rule change is
set forth below. Proposed new language
is in italics; proposed deletions are in
[brackets].5
7010. System Services
(a)–(h) No change.
(i) ITS/CAES System, Brut, and Inet
Order Execution and Routing
(1) The following charges shall apply
to the use of the order execution and
routing services of the ITS/CAES
System, Brut, and Inet (the ‘‘Nasdaq
Facilities’’) by members for all
Exchange-Traded Funds that are not
listed on The NASDAQ Stock Market
LLC. The term ‘‘Exchange-Traded
Funds’’ shall mean Portfolio Depository
Receipts, Index Fund Shares, and Trust
Issued Receipts as such terms are
defined in Rule 4420(i), (j), and (l),
respectively, of The NASDAQ Stock
Market LLC. For purposes of
determining a member’s volume in all
securities under Rule 7010(i), the term
‘‘Nasdaq Facilities’’ shall also be
deemed to include the member’s
volume in Nasdaq-listed securities
through the facilities of The NASDAQ
Stock Market LLC.
ORDER EXECUTION
Order that accesses the Quote/Order of a market participant that does
not charge an access fee to market participants accessing its
Quotes/Orders through the Nasdaq Facilities:
Charge to member entering order:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of (i) more than 30 million shares of
liquidity provided, and (ii) more than 50 million shares of liquidity
accessed and/or routed; or members with an average daily volume
through the Nasdaq Facilities in all securities during the month of (i)
More than 20 million shares of liquidity provided, and (ii) more than
60 million shares of liquidity accessed and/or routed.
Other members .........................................................................................
$0.0028 per share executed (or, in the case of executions against
Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost).
Credit to member providing liquidity:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of more than 30 million shares of liquidity provided.
Other members .........................................................................................
$0.0025 per share executed (or $0, in the case of executions against
Quotes/Orders at less than $1.00 per share).
Order that accesses the Quote/Order of a market participant that
charges an access fee to market participants accessing its Quotes/
Orders through the Nasdaq Facilities:
Charge to member entering order:
Members with an average daily volume through the Nasdaq Facilities
in all securities during the month of more than 500,000 shares of liquidity provided.
Other members .........................................................................................
$0.001 per share executed (but no more than $10,000 per month).
$0.0030 per share executed (or, in the case of executions against
Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost).
$0.0020 per share executed (or $0, in the case of executions against
Quotes/Orders at less than $1.00 per share).
$0.001 per share executed.
ORDER ROUTING FOR EXCHANGE-TRADED FUNDS NOT LISTED ON NASDAQ
Order routed to the New York Stock Exchange (‘‘NYSE’’) [through its
DOT system].
[Any other order entered by a member that is routed outside of the
Nasdaq Facilities and that does not attempt to execute in the
Nasdaq Facilities prior to routing].
Order routed to the American Stock Exchange (‘‘Amex’’) [after attempting to execute in the Nasdaq Facilities].
[Order routed through the Intermarket Trading System (‘‘ITS’’) to NYSE
Arca after attempting to execute in the Nasdaq Facilities].
[Any other order routed through the Intermarket Trading System (‘‘ITS’’)
after attempting to execute in the Nasdaq Facilities].
[Any]All other orders [routed after attempting to execute in the Nasdaq
Facilities].
See [DOT] NYSE fee schedule in Rule 7010(i)(7).
[$0.004 per share executed].
$0.003 per share executed (plus, in the case of orders charged a fee
by the Amex specialist, $0.01 per share executed).
[$0.0028 per share executed].
[$0.0007 per share executed].
$0.003 per share executed.
sroberts on PROD1PC70 with NOTICES
(2)–(5) No change.
(6) Except as provided in paragraph
(7), the following charges shall apply to
the use of the order execution and
routing services of the Nasdaq Facilities
by members for securities subject to the
Consolidated Quotations Service and
Consolidated Tape Association plans
other than Exchange-Traded Funds
(‘‘Covered Securities’’):
5 Nasdaq states that changes are marked to the
rule text that appears in the electronic NASD
Manual found at https://www.nasd.com, as further
amended on an immediately effective basis by File
No. SR–NASD–2006–116. See Securities Exchange
Act Release No. 54695 (November 2, 2006), 71 FR
65862 (November 9, 2006).
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Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 / Notices
67181
ORDER EXECUTION
Order that accesses the Quote/Order of a Nasdaq Facility market participant:
Charge to member entering order:
On or after December 1, 2006 ..................................................................................
For a pilot period during the month of November 2006:
Members with an average daily volume through the Nasdaq Facilities in Covered
Securities during the month of (i) more than 100,000 shares of liquidity provided, and (ii) more than 100,000 shares of liquidity accessed and/or routed.
Members with an average daily volume through the Nasdaq Facilities in Covered
Securities during the month of (i) between 50,000 and 100,000 shares of liquidity provided, and (ii) between 50,000 and 100,000 shares of liquidity accessed
and/or routed.
Other members .........................................................................................................
Credit to member providing liquidity for a Covered Security listed on NYSE and
The NASDAQ Stock Market LLC:
Credit to a member providing liquidity for other Covered Securities:
Members with an average daily volume through the Nasdaq Facilities in Covered
Securities during the month of more than 5 million shares of liquidity accessed,
provided, or routed.
Members with an average daily volume through the Nasdaq Facilities in Covered
Securities during the month of 10 million or more shares of liquidity provided.
Other members .........................................................................................................
[$0.0007 per share executed]
$0.0007 per share executed.
$0.0007 per share executed.
$0.001 per share executed.
$0.0015 per share executed.
$0.0007 per share executed.
$0.0005 per share executed.
$0.0006 per share executed.
No credit.
ORDER ROUTING
Order routed to Amex ...............................................................................
Order routed to NYSE ..............................................................................
[Order routed to NYSE Arca] All other orders .........................................
[Order for NYSE-listed Covered Security routed to venue other than the
NYSE, Amex, or NYSE Arca].
[Order for Covered Security listed on venue other than the NYSE and
routed to venue other than Amex, NYSE, or NYSE Arca].
[Order routed through the ITS to NYSE Arca] .........................................
[Any other order routed through the ITS] .................................................
(7) The following charges shall apply
to the use of the Nasdaq Facilities by
*
sroberts on PROD1PC70 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.
17:10 Nov 17, 2006
[$0.0028 per share executed]
[$0.0007 per share executed]
Jkt 211001
$0.0003 per share executed (but no more than $[100,000] 75,000 per
month).
1. Purpose
Nasdaq is proposing several changes
to its price schedule for routing and
execution of orders in non-Nasdaq
exchange-listed securities. The changes
are in response to fees being imposed by
other trading venues on orders routed
directly through Nasdaq Execution
Services, LLC (Nasdaq’s broker-dealer
subsidiary) and through the Intermarket
Trading System (‘‘ITS’’). Several
markets, including NYSE Arca, the
Boston Stock Exchange, the National
Stock Exchange, and the Chicago Stock
Exchange, have announced or begun to
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securities, including Exchange-Traded
Funds:
$0.01 per share executed.
$0.0002 per share executed (but no more than $[60,000] 25,000 per
month).
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
VerDate Aug<31>2005
[$0.003 per share executed]
members for routing to the NYSE
[through its DOT system] for all
Order charged a fee by the NYSE specialist ...........................................
Order that attempts to execute in the Nasdaq Facilities prior to routing
and that is not charged a fee by the NYSE specialist or that is routed
to NYSE via ITS.
Order that does not attempt to execute in the Nasdaq Facilities prior to
routing and that is not charged a fee by the NYSE specialist.
(8) No change.
(j)–(v) No change.
*
*
*
*
$[0.003]$0.0028 per share executed (plus, in the case of orders
charged a fee by the Amex specialist, $0.01 per share executed).
See [DOT] NYSE fee schedule in Rule 7010(i)(7).
$0.0028 per share executed.
[$0.001 per share executed]
Sfmt 4703
impose fees of approximately $0.003 per
share for orders routed to them.
These fee changes have created a
pricing structure for trading securities
listed on the New York Stock Exchange
(‘‘NYSE’’) that is in a state of flux,
characterized by dramatic differences in
fees for effectively the same services.
For example, the markets listed above
charge 28 or 30 cents per 100 shares for
accessing liquidity, while the NYSE
charges 2.5 cents per 100 shares (less if
the firm’s total fees reach a $750,000 per
month cap), and Nasdaq currently
charges 7 cents per 100 shares.
Furthermore, while several markets
rebate approximately 20 cents per 100
shares for providing liquidity, Nasdaq
either provides no rebate, or rebates
only 5 or 6 cents per 100 shares; the
NYSE, by contrast, charges 2.5 cents per
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Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 / Notices
100 shares. Nasdaq believes that the
market will find an equilibrium pricing
structure, because the disparities listed
above are unstable due to the
interconnectivity of the market. In order
to transition to a more stable fee
structure, Nasdaq is proposing several
fee changes. These changes should be
viewed in light of the dramatic
disparities in pricing listed above.
For orders in non-Nasdaq-listed
exchange-traded funds (‘‘ETFs’’) routed
to venues other than the NYSE, Nasdaq
is proposing to eliminate current
specific fees for orders routed through
ITS or that route without checking the
books of the Nasdaq Facilities, and is
instituting a flat fee of $0.003 per share
executed (plus $0.01 per share in the
case of orders charged a fee by an
American Stock Exchange (‘‘Amex’’)
specialist). Thus, fees would be reduced
for orders that do not attempt to execute
prior to routing, would be increased for
orders routed through ITS, and would
remain unchanged for all other routed
ETF orders.
For orders in non-Nasdaq-listed
securities other than ETFs that are
routed to venues other than the NYSE,
Nasdaq is proposing to eliminate
current specific fees that differentiate
among orders based on a security’s
listing market and/or the order’s
destination market and instituting a flat
fee of $0.0028 per share executed (plus
$0.01 per share in the case of orders
charged a fee by an Amex specialist). As
a result, fees would remain unchanged
for orders routed to NYSE Arca, would
decrease slightly for orders routed to
Amex and for orders in non-NYSE-listed
securities routed to regional exchanges
or ECNs, and would increase for orders
in NYSE-listed securities routed to
regional exchanges or ECNs and for
orders routed through ITS.
For orders in all securities routed to
the NYSE for execution, Nasdaq is
proposing to institute a decrease (from
$0.0007 to $0.0002 per share executed)
for orders routed through the ITS, and
would apply to these charges the same
monthly fee cap that applies to orders
routed through NYSE’s DOT system
after checking the books of the Nasdaq
Facilities. Moreover, Nasdaq would
reduce this monthly cap from $60,000 to
$25,000. Nasdaq is also reducing the
monthly fee cap for DOT orders that do
not check the Nasdaq Facilities’ books,
from $100,000 to $75,000.
Finally, to encourage firms to utilize
Nasdaq in non-Nasdaq-listed securities,
Nasdaq is proposing to introduce a
higher pricing tier of $0.0015 per share
executed for members to access
liquidity when those members provide
an average of less than 50,000 shares of
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17:10 Nov 17, 2006
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liquidity per day and access and/or
route an average of less than 50,000
shares of liquidity per day in nonNasdaq securities through the Nasdaq
Facilities during the month. In addition,
Nasdaq is introducing an intermediate
pricing tier of $0.001 per share executed
for members to access liquidity when
those members provide an average of
between 50,000 shares and 100,000
shares of liquidity per day and access
and/or route an average of between
50,000 shares and 100,000 shares of
liquidity per day.6 Because this change
is made on a pilot basis, Nasdaq states
that it will the review affect of the price
change and determine whether to
submit an additional filing regarding
these fees by December 1, 2006.
Although the Nasdaq Facilities have
enjoyed substantial growth in the share
of non-Nasdaq-listed stocks that they
executed over the past year, many
members that use the Nasdaq Facilities
still do so only on a minimal basis. In
fact, if the new fees had been in place
in September 2006, a higher rate would
have applied to over 84% of the firms
trading non-Nasdaq securities through
the Nasdaq Facilities. By setting the
thresholds for lower rates at the modest
levels of 50,000 and 100,000 shares per
day, Nasdaq hopes to encourage all of
these firms to rethink their routing and
quoting practices, in lieu of reflexively
sending their orders to just one market.
Nasdaq believes that incentives aimed at
encouraging a modest level of use by a
broader number of members would
further enhance the quality of Nasdaq
markets for trading these securities.
Nasdaq believes that the fee would
result in overall monthly fees and
rebates with respect to accessing and
providing liquidity through Nasdaq that
are significantly lower than fees and
rebates on other venues. For example, a
market participant providing no
liquidity would pay $0.0015 per share
accessed and receive no rebate; under
pricing recently introduced by NYSE
Arca, a market participant providing no
liquidity would pay twice as much—
$0.003 per share accessed—and receive
no rebate.
Although the absence of liquidity
provider credits on the NYSE itself
makes comparison more difficult, it
6 Nasdaq would continue to charge $0.0007 per
share executed for all other members to access
liquidity (i.e., when those members provide an
average of more than 100,000 shares of liquidity per
day and access and/or route an average of more
than 100,000 shares of liquidity per day).
Telephone conversation among John Yetter, Senior
Associate General Counsel, Nasdaq, David Liu,
Special Counsel, Division of Market Regulation
(‘‘Division’’), Commission, and Theodore Venuti,
Attorney, Division, Commission, on November 8,
2006.
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should be noted that recent fee increases
by that venue clearly had a disparate
impact on Nasdaq Execution Services
and other market participants that do
not charge customers high
commissions—in the case of Nasdaq
Execution Services, increasing monthly
charges to route orders to the NYSE
from an average of $3,620 per month
during the six months prior to the fee
increase to $750,000 per month, an
increase of 20,600 percent. In addition,
Nasdaq and others routing orders to the
NYSE must often pay unfiled specialist
charges of $0.01 per share for many
orders that they route to the NYSE.
Nevertheless, the NYSE’s filed rate for
transactions of $0.00025 per share
executed, coupled with its new monthly
fee cap of $750,000 per month, results
in dramatically lower average execution
fees for large participants in its market.
For example, a firm with an average
daily volume of 300 million shares per
day during October 2006 would pay an
average per share charge of $0.000114,
less than half the per share rate paid by
firms not reaching the cap. In contrast
to the NYSE’s steep discount, however,
which serves simply to reduce the
relative fees of its largest customers,
Nasdaq’s change is designed specifically
to encourage use of the Nasdaq system
that enhances market quality and
thereby benefits investors choosing to
enter orders into Nasdaq.
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.
Nasdaq states that the proposed rule
change would put lower caps on fees to
route orders to the NYSE, thereby
reducing charges to members that make
substantial use of Nasdaq’s routing
facilities. Nasdaq states that the
proposal also imposes more uniform
charges for routing to other venues.
Finally, Nasdaq states that the proposed
change introduces a higher fee for
accessing Nasdaq Facility liquidity in
cases where a market participant’s use
of the Nasdaq Facilities does not meet
certain minimal thresholds. Nasdaq
believes that this change is consistent
with an equitable allocation of fees
because lower overall fees are charged
7 15
8 15
U.S.C. 78o–3.
U.S.C. 78o–3(b)(5).
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Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 / Notices
to market participant that enhance
market quality by providing liquidity.
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. In particular,
Nasdaq does not believe that the
proposed change to fees to access
liquidity in non-Nasdaq securities
through the Nasdaq Facilities would
impose a burden on competition by
other markets that route orders to the
Nasdaq Facilities for execution. First, as
discussed in greater detail above,
Nasdaq’s fees applicable to members
accessing substantially more liquidity
than they provide are one-half of NYSE
Arca’s, while NYSE Arca provides
greater rebates to liquidity providers.
Thus, to the extent that NYSE Arca, for
example, routes only marketable orders
to Nasdaq, it would receive more
beneficial pricing than it offers under
similar circumstances. Second, it should
be noted that status as an execution
venue does not equate to acting solely
as a liquidity accessor with respect to
other markets. Through its Nasdaq
Execution Services broker-dealer,
Nasdaq provides substantial liquidity on
the floor of the NYSE, because Nasdaq
views this as a valuable service that can
be offered to its members. Thus, if the
NYSE had a comparable fee structure in
place, Nasdaq would easily qualify for
a reduced rate when accessing liquidity
at that venue. Finally, the change is
broad in its application, in that it
currently would apply to over 84% of
firms trading non-Nasdaq securities
through the Nasdaq Facilities, all of
which are equally eligible to increase
their use of the Nasdaq Facilities in
Nasdaq in order to qualify for more
favorable pricing.
sroberts on PROD1PC70 with NOTICES
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
The foregoing rule change is subject to
Section 19(b)(3)(A)(ii) of the Act 9 and
subparagraph (f)(2) of Rule 19b–4
thereunder 10 because it establishes or
changes a due, fee, or other charge
applicable only to a member imposed by
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
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17:10 Nov 17, 2006
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the self-regulatory organization.
Accordingly, the proposal is effective
upon Commission receipt of the filing.
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:
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
No. SR–NASD–2006–122 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 No.
SR–NASD–2006–122. 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 will also be
available for inspection and copying at
the principal office of the 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
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
67183
submissions should refer to File No.
SR–NASD–2006–122 and should be
submitted on or before December 11,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–19516 Filed 11–17–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54715A; File No. SR–
NASD–2006–108]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving a
Proposed Rule Change and Notice of
Filing and Order Granting Accelerated
Approval of Amendment No. 1 to a
Proposed Rule Change Relating to an
NASD Trade Reporting Facility
Established in Conjunction With the
National Stock Exchange, Inc.;
Corrrection
November 14, 2006.
In FR Doc. No. E6–19167, beginning
on page 66354 for Tuesday, November
14, 2006, the last sentence in part IV on
page 66359 contained an error. The
sentence refers incorrectly to Section
6(b)(5) of the Act rather than Section
15A(b)(6) of the Act. Accordingly, the
sentence should be revised to read as
follows:
‘‘Accordingly, the Commission finds
that it is consistent with Sections
15A(b)(6) and 19(b) of the Act to
approve Amendment No. 1 on an
accelerated basis.’’
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.1
Nancy M. Morris,
Secretary.
[FR Doc. E6–19537 Filed 11–17–06; 8:45 am]
BILLING CODE 8011–01–P
11 17
1 17
CFR 200.30–3(a)(12).
CFR 200.30–3(a)(12).
E:\FR\FM\20NON1.SGM
20NON1
]]>Agencies
[Federal Register Volume 71, Number 223 (Monday, November 20, 2006)]
[Notices]
[Pages 67179-67183]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19516]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54742; File No. SR-NASD-2006-122]
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 13, 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 November 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, II,
and III below, which Items have been substantially prepared by Nasdaq.
Nasdaq filed the proposed rule change pursuant to Section
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change 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)(ii).
\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 the
ITS/CAES System and the Brut and Inet facilities (collectively, the
``Nasdaq Facilities''). Nasdaq states that it will implement this rule
change on November 1, 2006. As indicated in the rule text, portions of
the rule change would be in effect on a pilot basis, beginning November
1, 2006 and continuing through November 30, 2006.
[[Page 67180]]
The text of the proposed rule change is set forth below. Proposed new
language is in italics; proposed deletions are in [brackets].\5\
---------------------------------------------------------------------------
\5\ Nasdaq states that changes are marked to the rule text that
appears in the electronic NASD Manual found at https://www.nasd.com,
as further amended on an immediately effective basis by File No. SR-
NASD-2006-116. See Securities Exchange Act Release No. 54695
(November 2, 2006), 71 FR 65862 (November 9, 2006).
---------------------------------------------------------------------------
7010. System Services
(a)-(h) No change.
(i) ITS/CAES System, Brut, and Inet Order Execution and Routing
(1) The following charges shall apply to the use of the order
execution and routing services of the ITS/CAES System, Brut, and Inet
(the ``Nasdaq Facilities'') by members for all Exchange-Traded Funds
that are not listed on The NASDAQ Stock Market LLC. The term
``Exchange-Traded Funds'' shall mean Portfolio Depository Receipts,
Index Fund Shares, and Trust Issued Receipts as such terms are defined
in Rule 4420(i), (j), and (l), respectively, of The NASDAQ Stock Market
LLC. For purposes of determining a member's volume in all securities
under Rule 7010(i), the term ``Nasdaq Facilities'' shall also be deemed
to include the member's volume in Nasdaq-listed securities through the
facilities of The NASDAQ Stock Market LLC.
Order Execution
------------------------------------------------------------------------
------------------------------------------------------------------------
Order that accesses the Quote/Order of
a market participant that does not
charge an access fee to market
participants accessing its Quotes/
Orders through the Nasdaq Facilities:
Charge to member entering order:
Members with an average daily volume $0.0028 per share executed (or,
through the Nasdaq Facilities in all in the case of executions
securities during the month of (i) against Quotes/Orders at less
more than 30 million shares of than $1.00 per share, 0.1% of
liquidity provided, and (ii) more than the total transaction cost).
50 million shares of liquidity
accessed and/or routed; or members
with an average daily volume through
the Nasdaq Facilities in all
securities during the month of (i)
More than 20 million shares of
liquidity provided, and (ii) more than
60 million shares of liquidity
accessed and/or routed.
Other members.......................... $0.0030 per share executed (or,
in the case of executions
against Quotes/Orders at less
than $1.00 per share, 0.1% of
the total transaction cost).
Credit to member providing liquidity:
Members with an average daily volume $0.0025 per share executed (or
through the Nasdaq Facilities in all $0, in the case of executions
securities during the month of more against Quotes/Orders at less
than 30 million shares of liquidity than $1.00 per share).
provided.
Other members.......................... $0.0020 per share executed (or
$0, in the case of executions
against Quotes/Orders at less
than $1.00 per share).
Order that accesses the Quote/Order of
a market participant that charges an
access fee to market participants
accessing its Quotes/Orders through
the Nasdaq Facilities:
Charge to member entering order:
Members with an average daily volume $0.001 per share executed (but
through the Nasdaq Facilities in all no more than $10,000 per
securities during the month of more month).
than 500,000 shares of liquidity
provided.
Other members.......................... $0.001 per share executed.
------------------------------------------------------------------------
Order Routing for Exchange-Traded Funds Not Listed on Nasdaq
------------------------------------------------------------------------
------------------------------------------------------------------------
Order routed to the New York Stock See [DOT] NYSE fee schedule in
Exchange (``NYSE'') [through its DOT Rule 7010(i)(7).
system].
[Any other order entered by a member [$0.004 per share executed].
that is routed outside of the Nasdaq
Facilities and that does not attempt
to execute in the Nasdaq Facilities
prior to routing].
Order routed to the American Stock $0.003 per share executed
Exchange (``Amex'') [after attempting (plus, in the case of orders
to execute in the Nasdaq Facilities]. charged a fee by the Amex
specialist, $0.01 per share
executed).
[Order routed through the Intermarket [$0.0028 per share executed].
Trading System (``ITS'') to NYSE Arca
after attempting to execute in the
Nasdaq Facilities].
[Any other order routed through the [$0.0007 per share executed].
Intermarket Trading System (``ITS'')
after attempting to execute in the
Nasdaq Facilities].
[Any]All other orders [routed after $0.003 per share executed.
attempting to execute in the Nasdaq
Facilities].
------------------------------------------------------------------------
(2)-(5) No change.
(6) Except as provided in paragraph (7), the following charges
shall apply to the use of the order execution and routing services of
the Nasdaq Facilities by members for securities subject to the
Consolidated Quotations Service and Consolidated Tape Association plans
other than Exchange-Traded Funds (``Covered Securities''):
[[Page 67181]]
Order Execution
------------------------------------------------------------------------
------------------------------------------------------------------------
Order that accesses the Quote/Order of a
Nasdaq Facility market participant:
Charge to member entering order: [$0.0007 per share executed]
On or after December 1, 2006.............. $0.0007 per share executed.
For a pilot period during the month of
November 2006:
Members with an average daily volume $0.0007 per share executed.
through the Nasdaq Facilities in Covered
Securities during the month of (i) more
than 100,000 shares of liquidity
provided, and (ii) more than 100,000
shares of liquidity accessed and/or
routed.
Members with an average daily volume $0.001 per share executed.
through the Nasdaq Facilities in Covered
Securities during the month of (i)
between 50,000 and 100,000 shares of
liquidity provided, and (ii) between
50,000 and 100,000 shares of liquidity
accessed and/or routed.
Other members............................. $0.0015 per share executed.
Credit to member providing liquidity for a $0.0007 per share executed.
Covered Security listed on NYSE and The
NASDAQ Stock Market LLC:
Credit to a member providing liquidity for
other Covered Securities:
Members with an average daily volume $0.0005 per share executed.
through the Nasdaq Facilities in Covered
Securities during the month of more than
5 million shares of liquidity accessed,
provided, or routed.
Members with an average daily volume $0.0006 per share executed.
through the Nasdaq Facilities in Covered
Securities during the month of 10 million
or more shares of liquidity provided.
Other members............................. No credit.
------------------------------------------------------------------------
Order Routing
------------------------------------------------------------------------
------------------------------------------------------------------------
Order routed to Amex................... $[0.003]$0.0028 per share
executed (plus, in the case of
orders charged a fee by the
Amex specialist, $0.01 per
share executed).
Order routed to NYSE................... See [DOT] NYSE fee schedule in
Rule 7010(i)(7).
[Order routed to NYSE Arca] All other $0.0028 per share executed.
orders.
[Order for NYSE-listed Covered Security [$0.001 per share executed]
routed to venue other than the NYSE,
Amex, or NYSE Arca].
[Order for Covered Security listed on [$0.003 per share executed]
venue other than the NYSE and routed
to venue other than Amex, NYSE, or
NYSE Arca].
[Order routed through the ITS to NYSE [$0.0028 per share executed]
Arca].
[Any other order routed through the [$0.0007 per share executed]
ITS].
------------------------------------------------------------------------
(7) The following charges shall apply to the use of the Nasdaq
Facilities by members for routing to the NYSE [through its DOT system]
for all securities, including Exchange-Traded Funds:
------------------------------------------------------------------------
------------------------------------------------------------------------
Order charged a fee by the NYSE $0.01 per share executed.
specialist.
Order that attempts to execute in the $0.0002 per share executed (but
Nasdaq Facilities prior to routing and no more than $[60,000] 25,000
that is not charged a fee by the NYSE per month).
specialist or that is routed to NYSE
via ITS.
Order that does not attempt to execute $0.0003 per share executed (but
in the Nasdaq Facilities prior to no more than $[100,000] 75,000
routing and that is not charged a fee per month).
by the NYSE specialist.
------------------------------------------------------------------------
(8) No change.
(j)-(v) No change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Nasdaq included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. Nasdaq has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq is proposing several changes to its price schedule for
routing and execution of orders in non-Nasdaq exchange-listed
securities. The changes are in response to fees being imposed by other
trading venues on orders routed directly through Nasdaq Execution
Services, LLC (Nasdaq's broker-dealer subsidiary) and through the
Intermarket Trading System (``ITS''). Several markets, including NYSE
Arca, the Boston Stock Exchange, the National Stock Exchange, and the
Chicago Stock Exchange, have announced or begun to impose fees of
approximately $0.003 per share for orders routed to them.
These fee changes have created a pricing structure for trading
securities listed on the New York Stock Exchange (``NYSE'') that is in
a state of flux, characterized by dramatic differences in fees for
effectively the same services. For example, the markets listed above
charge 28 or 30 cents per 100 shares for accessing liquidity, while the
NYSE charges 2.5 cents per 100 shares (less if the firm's total fees
reach a $750,000 per month cap), and Nasdaq currently charges 7 cents
per 100 shares. Furthermore, while several markets rebate approximately
20 cents per 100 shares for providing liquidity, Nasdaq either provides
no rebate, or rebates only 5 or 6 cents per 100 shares; the NYSE, by
contrast, charges 2.5 cents per
[[Page 67182]]
100 shares. Nasdaq believes that the market will find an equilibrium
pricing structure, because the disparities listed above are unstable
due to the interconnectivity of the market. In order to transition to a
more stable fee structure, Nasdaq is proposing several fee changes.
These changes should be viewed in light of the dramatic disparities in
pricing listed above.
For orders in non-Nasdaq-listed exchange-traded funds (``ETFs'')
routed to venues other than the NYSE, Nasdaq is proposing to eliminate
current specific fees for orders routed through ITS or that route
without checking the books of the Nasdaq Facilities, and is instituting
a flat fee of $0.003 per share executed (plus $0.01 per share in the
case of orders charged a fee by an American Stock Exchange (``Amex'')
specialist). Thus, fees would be reduced for orders that do not attempt
to execute prior to routing, would be increased for orders routed
through ITS, and would remain unchanged for all other routed ETF
orders.
For orders in non-Nasdaq-listed securities other than ETFs that are
routed to venues other than the NYSE, Nasdaq is proposing to eliminate
current specific fees that differentiate among orders based on a
security's listing market and/or the order's destination market and
instituting a flat fee of $0.0028 per share executed (plus $0.01 per
share in the case of orders charged a fee by an Amex specialist). As a
result, fees would remain unchanged for orders routed to NYSE Arca,
would decrease slightly for orders routed to Amex and for orders in
non-NYSE-listed securities routed to regional exchanges or ECNs, and
would increase for orders in NYSE-listed securities routed to regional
exchanges or ECNs and for orders routed through ITS.
For orders in all securities routed to the NYSE for execution,
Nasdaq is proposing to institute a decrease (from $0.0007 to $0.0002
per share executed) for orders routed through the ITS, and would apply
to these charges the same monthly fee cap that applies to orders routed
through NYSE's DOT system after checking the books of the Nasdaq
Facilities. Moreover, Nasdaq would reduce this monthly cap from $60,000
to $25,000. Nasdaq is also reducing the monthly fee cap for DOT orders
that do not check the Nasdaq Facilities' books, from $100,000 to
$75,000.
Finally, to encourage firms to utilize Nasdaq in non-Nasdaq-listed
securities, Nasdaq is proposing to introduce a higher pricing tier of
$0.0015 per share executed for members to access liquidity when those
members provide an average of less than 50,000 shares of liquidity per
day and access and/or route an average of less than 50,000 shares of
liquidity per day in non-Nasdaq securities through the Nasdaq
Facilities during the month. In addition, Nasdaq is introducing an
intermediate pricing tier of $0.001 per share executed for members to
access liquidity when those members provide an average of between
50,000 shares and 100,000 shares of liquidity per day and access and/or
route an average of between 50,000 shares and 100,000 shares of
liquidity per day.\6\ Because this change is made on a pilot basis,
Nasdaq states that it will the review affect of the price change and
determine whether to submit an additional filing regarding these fees
by December 1, 2006.
---------------------------------------------------------------------------
\6\ Nasdaq would continue to charge $0.0007 per share executed
for all other members to access liquidity (i.e., when those members
provide an average of more than 100,000 shares of liquidity per day
and access and/or route an average of more than 100,000 shares of
liquidity per day). Telephone conversation among John Yetter, Senior
Associate General Counsel, Nasdaq, David Liu, Special Counsel,
Division of Market Regulation (``Division''), Commission, and
Theodore Venuti, Attorney, Division, Commission, on November 8,
2006.
---------------------------------------------------------------------------
Although the Nasdaq Facilities have enjoyed substantial growth in
the share of non-Nasdaq-listed stocks that they executed over the past
year, many members that use the Nasdaq Facilities still do so only on a
minimal basis. In fact, if the new fees had been in place in September
2006, a higher rate would have applied to over 84% of the firms trading
non-Nasdaq securities through the Nasdaq Facilities. By setting the
thresholds for lower rates at the modest levels of 50,000 and 100,000
shares per day, Nasdaq hopes to encourage all of these firms to rethink
their routing and quoting practices, in lieu of reflexively sending
their orders to just one market. Nasdaq believes that incentives aimed
at encouraging a modest level of use by a broader number of members
would further enhance the quality of Nasdaq markets for trading these
securities.
Nasdaq believes that the fee would result in overall monthly fees
and rebates with respect to accessing and providing liquidity through
Nasdaq that are significantly lower than fees and rebates on other
venues. For example, a market participant providing no liquidity would
pay $0.0015 per share accessed and receive no rebate; under pricing
recently introduced by NYSE Arca, a market participant providing no
liquidity would pay twice as much--$0.003 per share accessed--and
receive no rebate.
Although the absence of liquidity provider credits on the NYSE
itself makes comparison more difficult, it should be noted that recent
fee increases by that venue clearly had a disparate impact on Nasdaq
Execution Services and other market participants that do not charge
customers high commissions--in the case of Nasdaq Execution Services,
increasing monthly charges to route orders to the NYSE from an average
of $3,620 per month during the six months prior to the fee increase to
$750,000 per month, an increase of 20,600 percent. In addition, Nasdaq
and others routing orders to the NYSE must often pay unfiled specialist
charges of $0.01 per share for many orders that they route to the NYSE.
Nevertheless, the NYSE's filed rate for transactions of $0.00025 per
share executed, coupled with its new monthly fee cap of $750,000 per
month, results in dramatically lower average execution fees for large
participants in its market. For example, a firm with an average daily
volume of 300 million shares per day during October 2006 would pay an
average per share charge of $0.000114, less than half the per share
rate paid by firms not reaching the cap. In contrast to the NYSE's
steep discount, however, which serves simply to reduce the relative
fees of its largest customers, Nasdaq's change is designed specifically
to encourage use of the Nasdaq system that enhances market quality and
thereby benefits investors choosing to enter orders into Nasdaq.
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. Nasdaq states that the
proposed rule change would put lower caps on fees to route orders to
the NYSE, thereby reducing charges to members that make substantial use
of Nasdaq's routing facilities. Nasdaq states that the proposal also
imposes more uniform charges for routing to other venues. Finally,
Nasdaq states that the proposed change introduces a higher fee for
accessing Nasdaq Facility liquidity in cases where a market
participant's use of the Nasdaq Facilities does not meet certain
minimal thresholds. Nasdaq believes that this change is consistent with
an equitable allocation of fees because lower overall fees are charged
[[Page 67183]]
to market participant that enhance market quality by providing
liquidity.
---------------------------------------------------------------------------
\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. In particular, Nasdaq does not
believe that the proposed change to fees to access liquidity in non-
Nasdaq securities through the Nasdaq Facilities would impose a burden
on competition by other markets that route orders to the Nasdaq
Facilities for execution. First, as discussed in greater detail above,
Nasdaq's fees applicable to members accessing substantially more
liquidity than they provide are one-half of NYSE Arca's, while NYSE
Arca provides greater rebates to liquidity providers. Thus, to the
extent that NYSE Arca, for example, routes only marketable orders to
Nasdaq, it would receive more beneficial pricing than it offers under
similar circumstances. Second, it should be noted that status as an
execution venue does not equate to acting solely as a liquidity
accessor with respect to other markets. Through its Nasdaq Execution
Services broker-dealer, Nasdaq provides substantial liquidity on the
floor of the NYSE, because Nasdaq views this as a valuable service that
can be offered to its members. Thus, if the NYSE had a comparable fee
structure in place, Nasdaq would easily qualify for a reduced rate when
accessing liquidity at that venue. Finally, the change is broad in its
application, in that it currently would apply to over 84% of firms
trading non-Nasdaq securities through the Nasdaq Facilities, all of
which are equally eligible to increase their use of the Nasdaq
Facilities in Nasdaq in order to qualify for more favorable pricing.
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
The foregoing rule change is subject to Section 19(b)(3)(A)(ii) of
the Act \9\ and subparagraph (f)(2) of Rule 19b-4 thereunder \10\
because it establishes or changes a due, fee, or other charge
applicable only to a member imposed by the self-regulatory
organization. Accordingly, the proposal is effective upon Commission
receipt of the filing. 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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 No. SR-NASD-2006-122 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 No. SR-NASD-2006-122. 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 will also be available for inspection and copying at the
principal office of the 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 No. SR-NASD-2006-122 and should be submitted on or before December
11, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-19516 Filed 11-17-06; 8:45 am]
BILLING CODE 8011-01-P
