Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Pricing for Nasdaq Members Using the Nasdaq Market Center, 3452-3453 [E7-1105]
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3452
Federal Register / Vol. 72, No. 16 / Thursday, January 25, 2007 / Notices
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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55137; File No. SR–
NASDAQ–2006–068]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
Pricing for Nasdaq Members Using the
Nasdaq Market Center
January 19, 2007.
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
28, 2006, The NASDAQ Stock Market
LLC (‘‘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 has filed the proposal pursuant
to 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 its members using the
Nasdaq Market Center. Nasdaq proposes
to implement the rule change on
January 2, 2007. The text of the
proposed rule change is available at
Nasdaq, the Commission’s Public
Reference Room, and https://
nasdaq.complinet.com/file_store/pdf/
rulebooks/SR–NASDAQ–2006–068.pdf. 5
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
ycherry on PROD1PC64 with NOTICES
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).
5 Changes to the text of the proposed rule change
are marked to the rule text that appears in the
electronic Nasdaq Manual found at
nasdaq.complinet.com/nasdaq/display/,
as further proposed to be amended by Securities
Exchange Act Release No. 55042 (Jan. 4, 2007), 72
FR 1569 (Jan. 12, 2007) (SR–NASDAQ–2006–055).
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14:58 Jan 24, 2007
Jkt 211001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
This filing adopts a simplified pricing
schedule for trading Nasdaq-listed
securities through the Nasdaq Market
Center. As is currently the case, the fee
schedule reflects the volume of a
member’s use of the Nasdaq Market
Center and also the ITS/CAES and Inet
systems operated by Nasdaq and its
affiliates as facilities of NASD, in
determining applicable fees.6 Order
execution and routing fees will be as
follows:
• $0.0027 per share executed for
market participants that (i) Add more
than 30 million shares of liquidity per
day during the month and route or
remove more than 50 million shares of
liquidity per day during the month, or
(ii) add more than 20 million shares of
liquidity per day during the month and
route or remove more than 60 million
share of liquidity per day during the
month;
• $0.0028 per share executed for
market participants that add more than
20 million shares of liquidity per day
during the month and route or remove
more than 35 million shares of liquidity
during the month;
• $0.003 per share executed for other
market participants;
• $0.003 per share executed for
routed orders that do not attempt to
execute in the Nasdaq Market Center
prior to routing;
• A liquidity provider credit of
$0.0025 per share executed for market
participants adding more than 30
million shares of liquidity per day
during the month, and a credit of $0.002
for other market participants; and
• As is currently the case for Nasdaqlisted securities, a fee of 0.1% of total
transaction cost, and no liquidity
provider credit, for executions against
quotes/orders in the Nasdaq Market
Center at less than $1.00 per share.
6 The consideration of volumes through ITS/
CAES and Inet is a function of the phased transition
of Nasdaq from an operator of NASD facilities to a
separate national securities exchange. As such,
NASD fee schedules will be amended to remove all
references to Nasdaq at or shortly after the time
when Nasdaq begins to trade non-Nasdaq exchangelisted securities as an exchange. NASD is
submitting a comparable filing to establish fees for
non-Nasdaq exchange-listed securities, which
likewise considers trading volumes through the
Nasdaq Market Center. See File No. SR–NASD–
2006–137.
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
The proposed rule change also
updates the text of Rule 7018 by
replacing references to the ‘‘Nasdaq
Facilities’’ with the term ‘‘Nasdaq
Market Center’’ to reflect Nasdaq system
integration, and by deleting certain
obsolete references to Brut and Inet.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,7 in
general, and with Sections 6(b)(4) of the
Act,8 in particular, in that the proposal
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities. Nasdaq
believes that the fees are reasonably
allocated among members based on
their usage of the trading systems
operated by Nasdaq, and are generally
consistent with fees charged by other
market centers for comparable services.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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 proposed 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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
7 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
8 15
E:\FR\FM\25JAN1.SGM
25JAN1
Federal Register / Vol. 72, No. 16 / Thursday, January 25, 2007 / Notices
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
Self-Regulatory Organizations:
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change Relating to the
Application of NASD Rule 2790 to
Issuer-Directed Securities
ycherry on PROD1PC64 with NOTICES
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2006–068 on the
subject line.
[Release No. 34–55128; File No. SR–NASD–
2006–074]
January 18, 2007.
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 June 12,
2006, the National Association of
• Send paper comments in triplicate
Securities Dealers, Inc. (‘‘NASD’’) filed
to Nancy M. Morris, Secretary,
with the Securities and Exchange
Securities and Exchange Commission,
Commission (‘‘SEC’’ or ‘‘Commission’’)
100 F Street, NE., Washington, DC
the proposed rule change as described
20549–1090.
in Items I, II, and III below, which Items
All submissions should refer to File
have been prepared by NASD. The
Number SR–NASDAQ–2006–068. This
Commission is publishing this notice to
file number should be included on the
subject line if e-mail is used. To help the solicit comments on the proposed rule
change from interested persons.
Commission process and review your
comments more efficiently, please use
I. Self-Regulatory Organization’s
only one method. The Commission will Statement of the Terms of Substance of
post all comments on the Commission’s the Proposed Rule Change
Internet Web site (https://www.sec.gov/
NASD is proposing to amend NASD
rules/sro.shtml). Copies of the
Rule 2790 to expand the exemption for
submission, all subsequent
securities that are directed by the issuer
amendments, all written statements
to include offerings sold entirely on a
with respect to the proposed rule
non-underwritten basis, where no
change that are filed with the
broker-dealer solicits or sells any new
Commission, and all written
issue securities in the offering, and
communications relating to the
where no broker-dealer has any
proposed rule change between the
involvement or influence, directly or
Commission and any person, other than
indirectly, in the issuer’s allocation
those that may be withheld from the
decisions with respect to any of the new
public in accordance with the
issue securities in the offering. NASD
provisions of 5 U.S.C. 552, will be
also is proposing to amend Rule 2790 to
available for inspection and copying in
prohibit the allocation of issuer-directed
the Commission’s Public Reference
securities to broker-dealers. Below is the
Room. Copies of the filing also will be
text of the proposed rule change.
available for inspection and copying at
Proposed new language is in italics;
the principal office of Nasdaq. All
proposed deletions are in [brackets].
comments received will be posted
*
*
*
*
*
without change; the Commission does
not edit personal identifying
2790. Restrictions on the Purchase and
information from submissions. You
Sale of Initial Equity Public Offerings
should submit only information that
(a) through (c) No Change.
you wish to make available publicly. All
(d) Issuer-Directed Securities.
submissions should refer to File
The prohibitions on the purchase and
Number SR–NASDAQ–2006–068 and
sale of new issues in this rule shall not
should be submitted on or before
apply to securities that:
February 15, 2007.
(1) Are specifically directed by the
issuer to persons that are restricted
For the Commission, by the Division of
under the rule; provided, however, that
Market Regulation, pursuant to delegated
securities directed by an issuer may not
authority.11
be sold to or purchased by:
Florence E. Harmon,
(A) A broker-dealer; or
Deputy Secretary.
(B) An account in which any
[FR Doc. E7–1105 Filed 1–24–07; 8:45 am]
restricted person specified in
BILLING CODE 8011–01–P
1 15
11 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
14:58 Jan 24, 2007
2 17
Jkt 211001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00071
Fmt 4703
Sfmt 4703
3453
subparagraphs (i)(10)(B) or (i)(10)(C) of
this rule has a beneficial interest, unless
such person, or a member of his or her
immediate family, is an employee or
director of the issuer, the issuer’s
parent, or a subsidiary of the issuer or
the issuer’s parent. Also, for purposes of
this paragraph (d)(1) only, a parent/
subsidiary relationship is established if
the parent has the right to vote 50% or
more of a class of voting security of the
subsidiary, or has the power to sell or
direct 50% or more of a class of voting
security of the subsidiary;
(2) Are specifically directed by the
issuer and are part of an offering in
which no broker-dealer:
(A) Underwrites any portion of the
offering;
(B) Solicits or sells any new issue
securities in the offering; and
(C) Has any involvement or influence,
directly or indirectly, in the issuer’s
allocation decisions with respect to any
of the new issue securities in the
offering;
(3) [(2)] Are part of a program
sponsored by the issuer or an affiliate of
the issuer that meets the following
criteria:
(A) The opportunity to purchase a
new issue under the program is offered
to at least 10,000 participants;
(B) Every participant is offered an
opportunity to purchase an equivalent
number of shares, or will receive a
specified number of shares under a
predetermined formula applied
uniformly across all participants;
(C) If not all participants receive
shares under the program, the selection
of the participants eligible to purchase
shares is based upon a random or other
non-discretionary allocation method;
and
(D) The class of participants does not
contain a disproportionate number of
restricted persons as compared to the
investing public generally; or
(4) [(3)] Are directed to eligible
purchasers who are otherwise restricted
under the rule as part of a conversion
offering in accordance with the
standards of the governmental agency or
instrumentality having authority to
regulate such conversion offering.
(e) through (j) 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,
NASD 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
E:\FR\FM\25JAN1.SGM
25JAN1
]]>Agencies
[Federal Register Volume 72, Number 16 (Thursday, January 25, 2007)]
[Notices]
[Pages 3452-3453]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-1105]
[[Page 3452]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55137; File No. SR-NASDAQ-2006-068]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Pricing for Nasdaq Members Using the Nasdaq Market Center
January 19, 2007.
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 28, 2006, The NASDAQ Stock Market LLC (``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 has filed the
proposal pursuant to 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 its members using the
Nasdaq Market Center. Nasdaq proposes to implement the rule change on
January 2, 2007. The text of the proposed rule change is available at
Nasdaq, the Commission's Public Reference Room, and https://
nasdaq.complinet.com/file_store/pdf/rulebooks/SR-NASDAQ-2006-068.pdf.
\5\
---------------------------------------------------------------------------
\5\ Changes to the text of the proposed rule change are marked
to the rule text that appears in the electronic Nasdaq Manual found
at nasdaq.complinet.com/nasdaq/display/, as further
proposed to be amended by Securities Exchange Act Release No. 55042
(Jan. 4, 2007), 72 FR 1569 (Jan. 12, 2007) (SR-NASDAQ-2006-055).
---------------------------------------------------------------------------
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
This filing adopts a simplified pricing schedule for trading
Nasdaq-listed securities through the Nasdaq Market Center. As is
currently the case, the fee schedule reflects the volume of a member's
use of the Nasdaq Market Center and also the ITS/CAES and Inet systems
operated by Nasdaq and its affiliates as facilities of NASD, in
determining applicable fees.\6\ Order execution and routing fees will
be as follows:
---------------------------------------------------------------------------
\6\ The consideration of volumes through ITS/CAES and Inet is a
function of the phased transition of Nasdaq from an operator of NASD
facilities to a separate national securities exchange. As such, NASD
fee schedules will be amended to remove all references to Nasdaq at
or shortly after the time when Nasdaq begins to trade non-Nasdaq
exchange-listed securities as an exchange. NASD is submitting a
comparable filing to establish fees for non-Nasdaq exchange-listed
securities, which likewise considers trading volumes through the
Nasdaq Market Center. See File No. SR-NASD-2006-137.
---------------------------------------------------------------------------
$0.0027 per share executed for market participants that
(i) Add more than 30 million shares of liquidity per day during the
month and route or remove more than 50 million shares of liquidity per
day during the month, or (ii) add more than 20 million shares of
liquidity per day during the month and route or remove more than 60
million share of liquidity per day during the month;
$0.0028 per share executed for market participants that
add more than 20 million shares of liquidity per day during the month
and route or remove more than 35 million shares of liquidity during the
month;
$0.003 per share executed for other market participants;
$0.003 per share executed for routed orders that do not
attempt to execute in the Nasdaq Market Center prior to routing;
A liquidity provider credit of $0.0025 per share executed
for market participants adding more than 30 million shares of liquidity
per day during the month, and a credit of $0.002 for other market
participants; and
As is currently the case for Nasdaq-listed securities, a
fee of 0.1% of total transaction cost, and no liquidity provider
credit, for executions against quotes/orders in the Nasdaq Market
Center at less than $1.00 per share.
The proposed rule change also updates the text of Rule 7018 by
replacing references to the ``Nasdaq Facilities'' with the term
``Nasdaq Market Center'' to reflect Nasdaq system integration, and by
deleting certain obsolete references to Brut and Inet.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with
Sections 6(b)(4) of the Act,\8\ in particular, in that the proposal
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities. Nasdaq believes that the fees are reasonably allocated
among members based on their usage of the trading systems operated by
Nasdaq, and are generally consistent with fees charged by other market
centers for comparable services.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed 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
[[Page 3453]]
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2006-068 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2006-068.
This file number should be included on the subject line if e-mail is
used. To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of the
filing also will be available for inspection and copying at the
principal office of Nasdaq. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2006-068 and should be submitted on or before
February 15, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-1105 Filed 1-24-07; 8:45 am]
BILLING CODE 8011-01-P
