Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Extend a Pricing Pilot for NASD Members Using ITS/CAES and Inet, 76407-76409 [E6-21650]
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Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
to NYSE without attempting to execute
in the Nasdaq Facilities;
• $0.0028 per share executed for
exchange-traded fund orders that route
to NYSE after attempting to execute in
the Nasdaq Facilities;
• $0.000275 per share executed for
orders in securities other than exchangetraded funds that route to NYSE without
attempting to execute in the Nasdaq
Facilities; and
• $0.000225 per share executed for
orders in securities other than exchangetraded funds that route to NYSE after
attempting to execute in the Nasdaq
Facilities.
As a further corollary to the changes
made by NYSE, Nasdaq is eliminating
the monthly fee caps that it had in place
for orders routed to NYSE and
eliminating the fee for orders charged a
fee by the NYSE specialist.
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 is a direct response to changes
in the fees that Nasdaq pays when
routing orders to the NYSE for
execution.
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.
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.
sroberts on PROD1PC70 with NOTICES
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
7 15
U.S.C. 78o–3.
8 15 U.S.C. 78o–3(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
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76407
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.
submissions should refer to File No.
SR–NASD–2006–132 and should be
submitted on or before January 10, 2007.
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:
SECURITIES AND EXCHANGE
COMMISSION
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–2006–132 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–2006–132. 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
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Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21648 Filed 12–19–06; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–54934; File No. SR–NASD–
2006–130]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto To Extend a Pricing Pilot for
NASD Members Using ITS/CAES and
Inet
December 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
30, 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. On December 6, 2006, Nasdaq
submitted Amendment No. 1 to the
proposed rule change. 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, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to extend a pricing
pilot for NASD members using the ITS/
CAES System and Nasdaq’s Inet facility
(collectively, the ‘‘Nasdaq Facilities’’).
Nasdaq states that it will implement this
rule change on December 1, 2006. The
text of the proposed rule change is set
11 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)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
E:\FR\FM\20DEN1.SGM
20DEN1
76408
Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
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 and Inet Order
Execution and Routing
(1)–(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’’):
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]January 2, 2007 ......................
For a pilot period during the months of November and December
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.
$0.001 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 ..............................................................................
All other orders .........................................................................................
$0.0028 per share executed (plus, in the case of orders charged a fee
by the Amex specialist, $0.01 per share executed).
See NYSE fee schedule in Rule 7010(i)(7).
$0.0028 per share executed.
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
sroberts on PROD1PC70 with NOTICES
(7)—(8) No change.
(j)—(y) No change.
*
*
*
*
*
1. Purpose
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.
Nasdaq proposes to extend for one
month a pricing pilot for non-Nasdaq
listed securities traded through the
Nasdaq Facilities. Effective November 1,
2006,6 Nasdaq introduced 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 nonNasdaq securities through the Nasdaq
Facilities during the month. In addition,
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 amended
by SR–NASD–2006–126 (November 13, 2006) on an
immediately effective basis.
6 See Securities Exchange Act Release No. 54742
(November 13, 2006), 71 FR 67179 (November 20,
2006) (SR–NASD–2006–122).
7 Nasdaq continues to charge $0.0007 per share
executed for all other members to access liquidity
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20:03 Dec 19, 2006
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PO 00000
Frm 00138
Fmt 4703
Sfmt 4703
Nasdaq introduced 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.7 Nasdaq states that it
is continuing to evaluate the effect of
the pricing change on market
participants’ liquidity provision, and
therefore is extending the pilot pricing
for one month. Nasdaq states that it will
determine whether to submit an
additional filing regarding these fees by
January 2, 2006.
(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).
E:\FR\FM\20DEN1.SGM
20DEN1
Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 15A of the Act,8 in
general, and with 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.
Nasdaq states that the proposed rule
change extends for an additional month
a pilot that introduced 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
to market participants 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,
for the reasons discussed in SR–NASD–
2006–122, Nasdaq does not believe that
the proposed change to fees to access
liquidity in non-Nasdaq securities
through the Nasdaq Facilities will
impose a burden on competition by
other markets that route orders to the
Nasdaq Facilities for execution.
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 10 and
subparagraph (f)(2) of Rule 19b–4
thereunder 11 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
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
20:03 Dec 19, 2006
Jkt 211001
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.12
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–2006–130 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–2006–130. 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.
12 15 U.S.C. 78s(b)(3)(C). For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposal,
the Commission considers the period to commence
on December 6, 2006, the date on which the
Exchange submitted Amendment No. 1.
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
76409
SR–NASD–2006–130 and should be
submitted on or before January 10, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21650 Filed 12–19–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54931; File No. SR–NASD–
2006–115]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Order Granting Accelerated Approval
to a Proposed Rule Change, as
Amended, Relating to an NASD Trade
Reporting Facility Established in
Conjunction With the Boston Stock
Exchange
December 13, 2006.
I. Introduction
On September 29, 2006, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposal to establish an NASD trade
reporting facility (the ‘‘NASD/BSE
TRF’’) in conjunction with the Boston
Stock Exchange, Inc. (‘‘BSE’’). The
proposed rule change was published for
comment in the Federal Register on
October 18, 2006.3 The Commission
received one comment letter regarding
the proposal.4 The NASD filed
Amendment No. 1 to the proposed rule
change on December 5, 2006.5 This
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 54591
(October 12, 2006), 71 FR 61519.
4 See letter from Alden Adkins, Executive Vice
President, BSE, to Robert Colby, Deputy Director,
Division of Market Regulation, Commission, dated
October 24, 2006 (‘‘BSE Letter’’).
5 In Amendment No. 1, the NASD revises the
proposal to: (1) Provide notice of final action taken
by the NASD with respect to the proposal; (2)
amend NASD Rule 4632D(a) to indicate that the
NASD/BSE TRF will support the .W and .PRP trade
report modifiers; (3) add NASD Rule 4632D(g)(2)(G)
to define the term ‘‘cancelled’’ for purposes of
determining the deadline for reporting a trade
cancellation; (4) add NASD Rule 4632D(i) and
6130D(g) to expressly prohibit the aggregating of
trades for purposes of trade reporting to the NASD/
BSE TRF; (5) add NASD Rule 6130D(f) to provide
trade report modifiers for certain transactions
reported to the NASD/BSE TRF in accordance with
Section 3 of Schedule A to the NASD By-Laws; and
1 15
E:\FR\FM\20DEN1.SGM
Continued
20DEN1
]]>Agencies
[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Notices]
[Pages 76407-76409]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21650]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54934; File No. SR-NASD-2006-130]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto To Extend a Pricing Pilot for
NASD Members Using ITS/CAES and Inet
December 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 30, 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.
On December 6, 2006, Nasdaq submitted Amendment No. 1 to the proposed
rule change. 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, as amended, 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 extend a pricing pilot for NASD members using
the ITS/CAES System and Nasdaq's Inet facility (collectively, the
``Nasdaq Facilities''). Nasdaq states that it will implement this rule
change on December 1, 2006. The text of the proposed rule change is set
[[Page 76408]]
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 amended by SR-NASD-2006-126 (November 13, 2006) on an immediately
effective basis.
---------------------------------------------------------------------------
7010. System Services
(a)-(h) No change.
(i) ITS/CAES System and Inet Order Execution and Routing
(1)-(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''):
Order Execution
------------------------------------------------------------------------
------------------------------------------------------------------------
Order that accesses the Quote/Order of
a Nasdaq Facility market participant:
Charge to member entering order:
On or after [December 1, $0.0007 per share executed.
2006]January 2, 2007.
For a pilot period during the
months of November and December
2006:
Members with an average daily $0.0007 per share executed.
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 $0.001 per share executed.
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.................. $0.0015 per share executed.
Credit to member providing liquidity $0.0007 per share executed.
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 $0.0005 per share executed.
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 $0.0006 per share executed.
volume 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................... $0.0028 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 NYSE fee schedule in Rule
7010(i)(7).
All other orders....................... $0.0028 per share executed.
------------------------------------------------------------------------
(7)--(8) No change.
(j)--(y) 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 proposes to extend for one month a pricing pilot for non-
Nasdaq listed securities traded through the Nasdaq Facilities.
Effective November 1, 2006,\6\ Nasdaq introduced 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 introduced 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.\7\ Nasdaq states that it is continuing to evaluate
the effect of the pricing change on market participants' liquidity
provision, and therefore is extending the pilot pricing for one month.
Nasdaq states that it will determine whether to submit an additional
filing regarding these fees by January 2, 2006.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54742 (November 13,
2006), 71 FR 67179 (November 20, 2006) (SR-NASD-2006-122).
\7\ Nasdaq continues 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).
---------------------------------------------------------------------------
[[Page 76409]]
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\8\ in general, and with
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. Nasdaq states that the
proposed rule change extends for an additional month a pilot that
introduced 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 to market participants that enhance market
quality by providing liquidity.
---------------------------------------------------------------------------
\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 result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. In particular, for the reasons
discussed in SR-NASD-2006-122, Nasdaq does not believe that the
proposed change to fees to access liquidity in non-Nasdaq securities
through the Nasdaq Facilities will impose a burden on competition by
other markets that route orders to the Nasdaq Facilities for execution.
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 \10\ and subparagraph (f)(2) of Rule 19b-4 thereunder \11\
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.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
\12\ 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-
day period within which the Commission may summarily abrogate the
proposal, the Commission considers the period to commence on
December 6, 2006, the date on which the Exchange submitted Amendment
No. 1.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-NASD-2006-130 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-2006-130. 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-2006-130 and should be submitted on or before January
10, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21650 Filed 12-19-06; 8:45 am]
BILLING CODE 8011-01-P
