Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Fees and Credits for the NASD/BSE Trade Reporting Facility, 7789-7790 [E7-2852]
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<![CDATA[
Federal Register / Vol. 72, No. 33 / Tuesday, February 20, 2007 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2007–010 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASD–2007–010. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal offices of 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
Number SR–NASD–2007–010 and
should be submitted on or before March
13, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2841 Filed 2–16–07; 8:45 am]
hsrobinson on PROD1PC76 with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55280; File No. SR–NASD–
2007–003]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding Fees and
Credits for the NASD/BSE Trade
Reporting Facility
February 12, 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 January
16, 2007, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by NASD. NASD filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it 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
NASD proposes to adopt a new NASD
Rule 7000D Series relating to fees and
credits for the Trade Reporting Facility
(‘‘NASD/BSE TRF’’) established by
NASD and the Boston Stock Exchange
(‘‘BSE’’). The text of the proposed rule
change is available at www.nasd.com,
NASD, and the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
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
may be examined at the places specified
in Item IV below. NASD has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
13 17
CFR 200.30–3(a)(12).
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16:14 Feb 16, 2007
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7789
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On December 13, 2006, the
Commission approved SR–NASD–2006–
115,5 which established rules relating to
the new NASD/BSE TRF. The NASD/
BSE TRF will provide NASD members
with another mechanism for reporting to
NASD locked-in transactions in
exchange-listed securities effected
otherwise than on an exchange. It is
anticipated that the NASD/BSE TRF
will commence operation in February
2007 upon successful completion of
system testing and certification. The
instant proposed rule change would
adopt a new NASD Rule 7000D Series
relating to fees and credits applicable to
the NASD/BSE TRF.
NASD is proposing that under new
Rule 7002D there will be no transaction
fee for reporting locked-in trades to the
NASD/BSE TRF in securities listed on
the New York Stock Exchange (‘‘Tape
A’’), the American Stock Exchange
(‘‘Tape B’’), and the Nasdaq Exchange
(‘‘Tape C’’). Although NASD is not
required to file a proposed rule change
where no fees are to be assessed, for
members’ convenience and to avoid
potential confusion with the fee
structures of other NASD facilities,
NASD is proposing Rule 7002D to
clarify that there will be no charge for
use of the NASD/BSE TRF to report
locked-in transactions in exchangelisted securities effected otherwise than
on an exchange. The text of proposed
Rule 7002D is identical to the text of
current Rule 7002C relating to the
NASD/NSX TRF.
In addition, NASD is proposing a
transaction credit program under new
Rule 7001D that is identical to the
existing transaction credit program for
the NASD/Nasdaq TRF under Rule
7001B.6 NASD members reporting
trades in Tape A, Tape B and Tape C
stocks to the NASD/BSE TRF will
receive a 50% pro rata credit on market
data revenue earned by the NASD/BSE
TRF with respect to those trade reports
after deducting the amount, if any, that
the Trade Reporting Facility pays to the
5 See Securities Exchange Act Release No. 54932
(December 13, 2006), 71 FR 76409 (December 20,
2006)(order).
6 See Securities Exchange Act Release No. 54353
(August 23, 2006), 71 FR 51255 (August 29, 2006).
NASD also notes that the proposed transaction
credit program is substantially equivalent to the
existing transaction credit program for the NASD/
NSX TRF under Rule 7001C. The only difference
between the two programs is that under the NASD/
NSX TRF transaction credit program, members
receive 50% of gross revenue.
E:\FR\FM\20FEN1.SGM
20FEN1
7790
Federal Register / Vol. 72, No. 33 / Tuesday, February 20, 2007 / Notices
Consolidated Tape Association or the
Nasdaq Securities Information Processor
for capacity usage. Credits will be paid
on a quarterly basis. To the extent that
market data revenue is subject to any
adjustment, credits may be adjusted
accordingly.
Tape A and Tape B revenue is
currently distributed to NASD and the
exchanges based on number of trades
reported, while Tape C revenue is
distributed based on an average of the
number of trades and number of shares
reported. Thus, under the proposed
program, the Tape A and Tape B
revenue attributable to a member will be
based on number of trades reported,
while the Tape C revenue attributable to
a member would be based on number of
trades and number of shares reported. A
member will receive 50% of the revenue
attributable to it in each of the three
tapes.
NASD filed the proposed rule change
for immediate effectiveness. NASD
proposes to implement the proposed
rule change on the first day of operation
of the NASD/BSE TRF, which is
currently anticipated to be in February
2007.
2. Statutory Basis
NASD 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, which requires, among
other things, that NASD rules provide
for the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system that NASD
operates or controls. NASD believes that
the proposed rule change is a reasonable
and equitable fee and credit structure in
that there will be no fees charged for
trade reporting to the NASD/BSE TRF
and the proposed transaction credit
program is identical to existing credits
for the NASD/Nasdaq TRF.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
hsrobinson on PROD1PC76 with NOTICES
Written comments were neither
solicited nor received.
7 15
8 15
U.S.C. 7o-3.
U.S.C. 8o–3(b)(5).
VerDate Aug<31>2005
16:14 Feb 16, 2007
Jkt 211001
Because the foregoing proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 9 and Rule 19b–4(f)(6) thereunder.10
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.
NASD has asked that the Commission
waive the 30-day operative delay set
forth in Rule 19b–4(f)(6)(iii) under the
Act 11 to allow the proposed rule change
to be implemented on the first day of
operation of the NASD/BSE TRF, which
is currently anticipated to be in
February 2007. The Commission
believes such waiver is consistent with
the protection of investors and the
public interest, for it will allow the
proposed fees and credits to be in place
at the time NASD begins operating the
NASD/BSE TRF. For these reasons, the
Commission designates the proposal to
be effective and operative upon filing
with the Commission.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
NASD 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
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASD–2007–003. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of NASD. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NASD–2007–003 and
should be submitted on or before March
13, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2852 Filed 2–16–07; 8:45 am]
BILLING CODE 8011–01–P
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2007–003 on the
subject line.
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
10 17
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13 17
E:\FR\FM\20FEN1.SGM
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 72, Number 33 (Tuesday, February 20, 2007)]
[Notices]
[Pages 7789-7790]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2852]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55280; File No. SR-NASD-2007-003]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Regarding Fees and Credits for the NASD/BSE Trade Reporting
Facility
February 12, 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 January 16, 2007, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by NASD. NASD filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6) thereunder,\4\ which renders it 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)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD proposes to adopt a new NASD Rule 7000D Series relating to
fees and credits for the Trade Reporting Facility (``NASD/BSE TRF'')
established by NASD and the Boston Stock Exchange (``BSE''). The text
of the proposed rule change is available at www.nasd.com, NASD, and the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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 may be examined at the places specified in
Item IV below. NASD 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
On December 13, 2006, the Commission approved SR-NASD-2006-115,\5\
which established rules relating to the new NASD/BSE TRF. The NASD/BSE
TRF will provide NASD members with another mechanism for reporting to
NASD locked-in transactions in exchange-listed securities effected
otherwise than on an exchange. It is anticipated that the NASD/BSE TRF
will commence operation in February 2007 upon successful completion of
system testing and certification. The instant proposed rule change
would adopt a new NASD Rule 7000D Series relating to fees and credits
applicable to the NASD/BSE TRF.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54932 (December 13,
2006), 71 FR 76409 (December 20, 2006)(order).
---------------------------------------------------------------------------
NASD is proposing that under new Rule 7002D there will be no
transaction fee for reporting locked-in trades to the NASD/BSE TRF in
securities listed on the New York Stock Exchange (``Tape A''), the
American Stock Exchange (``Tape B''), and the Nasdaq Exchange (``Tape
C''). Although NASD is not required to file a proposed rule change
where no fees are to be assessed, for members' convenience and to avoid
potential confusion with the fee structures of other NASD facilities,
NASD is proposing Rule 7002D to clarify that there will be no charge
for use of the NASD/BSE TRF to report locked-in transactions in
exchange-listed securities effected otherwise than on an exchange. The
text of proposed Rule 7002D is identical to the text of current Rule
7002C relating to the NASD/NSX TRF.
In addition, NASD is proposing a transaction credit program under
new Rule 7001D that is identical to the existing transaction credit
program for the NASD/Nasdaq TRF under Rule 7001B.\6\ NASD members
reporting trades in Tape A, Tape B and Tape C stocks to the NASD/BSE
TRF will receive a 50% pro rata credit on market data revenue earned by
the NASD/BSE TRF with respect to those trade reports after deducting
the amount, if any, that the Trade Reporting Facility pays to the
[[Page 7790]]
Consolidated Tape Association or the Nasdaq Securities Information
Processor for capacity usage. Credits will be paid on a quarterly
basis. To the extent that market data revenue is subject to any
adjustment, credits may be adjusted accordingly.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54353 (August 23,
2006), 71 FR 51255 (August 29, 2006).
NASD also notes that the proposed transaction credit program is
substantially equivalent to the existing transaction credit program
for the NASD/NSX TRF under Rule 7001C. The only difference between
the two programs is that under the NASD/NSX TRF transaction credit
program, members receive 50% of gross revenue.
---------------------------------------------------------------------------
Tape A and Tape B revenue is currently distributed to NASD and the
exchanges based on number of trades reported, while Tape C revenue is
distributed based on an average of the number of trades and number of
shares reported. Thus, under the proposed program, the Tape A and Tape
B revenue attributable to a member will be based on number of trades
reported, while the Tape C revenue attributable to a member would be
based on number of trades and number of shares reported. A member will
receive 50% of the revenue attributable to it in each of the three
tapes.
NASD filed the proposed rule change for immediate effectiveness.
NASD proposes to implement the proposed rule change on the first day of
operation of the NASD/BSE TRF, which is currently anticipated to be in
February 2007.
2. Statutory Basis
NASD 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, which requires, among other
things, that NASD rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that NASD operates or
controls. NASD believes that the proposed rule change is a reasonable
and equitable fee and credit structure in that there will be no fees
charged for trade reporting to the NASD/BSE TRF and the proposed
transaction credit program is identical to existing credits for the
NASD/Nasdaq TRF.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 7o-3.
\8\ 15 U.S.C. 8o-3(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\ 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).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
NASD has asked that the Commission waive the 30-day operative delay
set forth in Rule 19b-4(f)(6)(iii) under the Act \11\ to allow the
proposed rule change to be implemented on the first day of operation of
the NASD/BSE TRF, which is currently anticipated to be in February
2007. The Commission believes such waiver is consistent with the
protection of investors and the public interest, for it will allow the
proposed fees and credits to be in place at the time NASD begins
operating the NASD/BSE TRF. For these reasons, the Commission
designates the proposal to be effective and operative upon filing with
the Commission.\12\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2007-003 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASD-2007-003. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of NASD. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NASD-2007-003 and should be submitted on or before March 13, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-2852 Filed 2-16-07; 8:45 am]
BILLING CODE 8011-01-P
