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]

Download as PDF 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 http:// 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/index.html, 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). VerDate Aug<31>2005 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 (http://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 (http://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.
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    \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).
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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 http://
nasdaq.complinet.com/file_store/pdf/rulebooks/SR-NASDAQ-2006-068.pdf. 
\5\
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    \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/index.html, 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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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.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
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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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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 (http://
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 (http://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\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-1105 Filed 1-24-07; 8:45 am]
BILLING CODE 8011-01-P