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, 17969-17970 [E7-6674]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
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–ISE–2007–21 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55576; File No. SR–
NASDAQ–2007–026]
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
April 3, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on March 22,
to Nancy M. Morris, Secretary,
2007, The NASDAQ Stock Market LLC
Securities and Exchange Commission,
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Station Place, 100 F Street, NE.,
Securities and Exchange Commission
Washington, DC 20549–1090.
(‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I, II, and
Number SR–ISE–2007–21. This file
III below, which Items have been
number should be included on the
substantially prepared by Nasdaq.
subject line if e-mail is used. To help the Nasdaq has designated this proposal as
Commission process and review your
one establishing or changing a due, fee,
comments more efficiently, please use
or other charge under Section
only one method. The Commission will 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
post all comments on the Commission’s 4(f)(2) thereunder,4 which renders the
proposed rule change effective
Internet Web site (https://www.sec.gov/
immediately upon filing with the
rules/sro.shtml). Copies of the
Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons.
change that are filed with the
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of Substance of
proposed rule change between the
the Proposed Rule Change
Commission and any person, other than
Nasdaq proposes to modify the
those that may be withheld from the
pricing for Nasdaq members using the
public in accordance with the
Nasdaq Market Center. The text of the
provisions of 5 U.S.C. 552, will be
proposed rule change is available at
available for inspection and copying in
Nasdaq, on the Exchange’s Web site at
the Commission’s Public Reference
Room. Copies of such filing also will be https://www.nasdaq.com, and in the
Commission’s Public Reference Room.
available for inspection and copying at
II. Self-Regulatory Organization’s
the principal office of the ISE. All
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
information from submissions. You
In its filing with the Commission,
should submit only information that
Nasdaq included statements concerning
you wish to make available publicly. All the purpose of, and basis for, the
submissions should refer to File
proposed rule change and discussed any
Number SR–ISE–2007–21 and should be comments it received on the proposed
submitted on or before May 1, 2007.
rule change. The text of these statements
may be examined at the places specified
For the Commission, by the Division of
in Item IV below. Nasdaq has prepared
Market Regulation, pursuant to delegated
summaries, set forth in Sections A, B,
authority.17
and C below, of the most significant
Florence E. Harmon,
aspects of such statements.
Deputy Secretary.
cprice-sewell on PROD1PC66 with NOTICES
Paper Comments:
[FR Doc. E7–6672 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
17 17
15:22 Apr 09, 2007
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
1 15
Jkt 211001
PO 00000
Frm 00154
Fmt 4703
Sfmt 4703
17969
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to conform its
execution fees and liquidity-provider
rebates for transactions in non-Nasdaqlisted securities priced under $1 to the
current fees and rebates for Nasdaqlisted securities priced under $1. The
execution fees for such transactions will
be 0.1% of the total transaction cost,
and the liquidity-provider rebate will be
zero.5 Thus, for example, the execution
fee for a trade of 100 shares in a stock
priced at $0.70 would be $0.07, with no
rebate to the liquidity provider.
Nasdaq is also proposing to modify
the routing fee for Nasdaq-listed and
non-Nasdaq-listed securities priced
under $1 to 0.3% of the total transaction
cost.6 The change reflects the fact that
under Rule 610 of Regulation NMS,7
market centers to which Nasdaq routes
may charge Nasdaq only up to 0.3% of
the transaction cost for executing routed
orders in securities priced under $1.
Nasdaq recently began trading nonNasdaq-listed securities priced under $1
in sub-penny increments. As a result,
Nasdaq has seen an increase in its share
volume in these securities. Nasdaq
believes that, as is true for Nasdaq-listed
securities, the pricing structure for these
securities ensures that market
participants do not pay execution or
routing fees, or receive rebates, that are
disproportionately large when
compared with the dollar value of a
particular transaction. Nasdaq believes
that the changes also ensure that
execution fees are in compliance with
Rule 610 of Regulation NMS.
Separately, Nasdaq has filed a proposal
for a retroactive reduction in the fees
charged for executions of non-Nasdaqlisted securities priced under $1 for the
period from March 5 through March 21,
2007, to ensure that these fees are also
in compliance with the requirements of
Rule 610.
5 For an order in a non-Nasdaq security through
which a member accesses liquidity, this change will
result in a fee reduction; for a quote or order
through which a member acts as a liquidity
provider, this change will eliminate the rebate
previously paid to the member. See e-mail from
John Yetter, Vice President and Deputy General
Counsel, Nasdaq, to Sara Gillis, Attorney, Division
of Market Regulation, Commission, on April 2, 2007
(‘‘April 2, 2007 E-mail’’).
6 Depending on the price of the transaction and
a member’s average daily share volume during the
month, this change may either constitute a fee
increase or a fee reduction for a particular routed
order. See April 2, 2007 E-mail, supra note 5.
7 17 CFR 242.610.
E:\FR\FM\10APN1.SGM
10APN1
17970
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
2. Statutory Basis
Electronic Comments
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,8 in
general, and with Section 6(b)(4) 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
Nasdaq operates or controls. Nasdaq
believes that this change will ensure
that the level of fees and rebates
associated with trading securities at
prices under $1 is consistent with the
value of these securities, the costs of
routing orders to other market centers
for execution, and the requirements of
Rule 610 of Regulation NMS.
• 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–2007–026 on the
subject line.
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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge applicable only to a
member imposed by Nasdaq, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and
subparagraph (f)(2) of Rule 19b–4
thereunder.11 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.
cprice-sewell on PROD1PC66 with NOTICES
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:
U.S.C. 78f.
U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(2).
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55567; File No. SR–NYSE–
2007–35]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Technical Amendments to the
Amended and Restated Certificate of
Incorporation of NYSE Euronext
April 2, 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 March 29,
All submissions should refer to File
2007, New York Stock Exchange LLC
Number SR–NASDAQ–2007–026. This
(‘‘Exchange’’ or ‘‘NYSE’’) filed with the
file number should be included on the
Securities and Exchange Commission
subject line if e-mail is used. To help the
(‘‘Commission’’) the proposed rule
Commission process and review your
change as described in Items I and II
comments more efficiently, please use
below, which Items have been prepared
only one method. The Commission will substantially by the Exchange. The
post all comments on the Commission’s Exchange filed the proposed rule change
Internet Web site (https://www.sec.gov/
pursuant to Section 19(b)(3)(A) of the
rules/sro.shtml). Copies of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
submission, all subsequent
which renders the proposal effective
amendments, all written statements
upon filing with the Commission. The
with respect to the proposed rule
Commission is publishing this notice to
change that are filed with the
solicit comments on the proposed rule
Commission, and all written
change from interested persons.
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Statement of the Terms of Substance of
Commission and any person, other than
the Proposed Rule Change
those that may be withheld from the
The Exchange proposes to make
public in accordance with the
certain technical changes to the
provisions of 5 U.S.C. 552, will be
amended and restated certificate of
available for inspection and copying in
incorporation of NYSE Euronext to
the Commission’s Public Reference
Room. Copies of such filing also will be remove all references to ‘‘Year 1 NYSE
Shares’’ and ‘‘Year 1 NYSE Group
available for inspection and copying at
Shares’’ from the provisions regarding
the principal office of Nasdaq. All
transfer restrictions and to clarify that it
comments received will be posted
is the currently operative certificate of
without change; the Commission does
incorporation of NYSE Group, Inc. (and
not edit personal identifying
not the certificate of incorporation of
information from submissions. You
NYSE Group, Inc. that will be operative
should submit only information that
after the closing of the Combination (as
you wish to make available publicly. All defined below)) which contains the
submissions should refer to File
definitions of the terms ‘‘Year 2 NYSE
Number SR–NASDAQ–2007–026 and
Share’’ and ‘‘Year 3 NYSE Share.’’ The
should be submitted on or before May
text of the proposed rule change is
1, 2007.
available at the Exchange, https://
www.nyse.com, and the Commission’s
For the Commission, by the Division of
Public Reference Room.
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6674 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
8 15
1 15
9 15
2 17
VerDate Aug<31>2005
15:22 Apr 09, 2007
12 17
Jkt 211001
PO 00000
CFR 200.30–3(a)(12).
Frm 00155
Fmt 4703
Sfmt 4703
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).
E:\FR\FM\10APN1.SGM
10APN1
]]>Agencies
[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17969-17970]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6674]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55576; File No. SR-NASDAQ-2007-026]
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
April 3, 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 March 22, 2007, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') 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 designated this proposal as one establishing or changing a
due, fee, or other charge under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule
change effective immediately upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify the pricing for Nasdaq members using the
Nasdaq Market Center. The text of the proposed rule change is available
at Nasdaq, on the Exchange's Web site at https://www.nasdaq.com, and in
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, 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 conform its execution fees and liquidity-
provider rebates for transactions in non-Nasdaq-listed securities
priced under $1 to the current fees and rebates for Nasdaq-listed
securities priced under $1. The execution fees for such transactions
will be 0.1% of the total transaction cost, and the liquidity-provider
rebate will be zero.\5\ Thus, for example, the execution fee for a
trade of 100 shares in a stock priced at $0.70 would be $0.07, with no
rebate to the liquidity provider.
---------------------------------------------------------------------------
\5\ For an order in a non-Nasdaq security through which a member
accesses liquidity, this change will result in a fee reduction; for
a quote or order through which a member acts as a liquidity
provider, this change will eliminate the rebate previously paid to
the member. See e-mail from John Yetter, Vice President and Deputy
General Counsel, Nasdaq, to Sara Gillis, Attorney, Division of
Market Regulation, Commission, on April 2, 2007 (``April 2, 2007 E-
mail'').
---------------------------------------------------------------------------
Nasdaq is also proposing to modify the routing fee for Nasdaq-
listed and non-Nasdaq-listed securities priced under $1 to 0.3% of the
total transaction cost.\6\ The change reflects the fact that under Rule
610 of Regulation NMS,\7\ market centers to which Nasdaq routes may
charge Nasdaq only up to 0.3% of the transaction cost for executing
routed orders in securities priced under $1.
---------------------------------------------------------------------------
\6\ Depending on the price of the transaction and a member's
average daily share volume during the month, this change may either
constitute a fee increase or a fee reduction for a particular routed
order. See April 2, 2007 E-mail, supra note 5.
\7\ 17 CFR 242.610.
---------------------------------------------------------------------------
Nasdaq recently began trading non-Nasdaq-listed securities priced
under $1 in sub-penny increments. As a result, Nasdaq has seen an
increase in its share volume in these securities. Nasdaq believes that,
as is true for Nasdaq-listed securities, the pricing structure for
these securities ensures that market participants do not pay execution
or routing fees, or receive rebates, that are disproportionately large
when compared with the dollar value of a particular transaction. Nasdaq
believes that the changes also ensure that execution fees are in
compliance with Rule 610 of Regulation NMS. Separately, Nasdaq has
filed a proposal for a retroactive reduction in the fees charged for
executions of non-Nasdaq-listed securities priced under $1 for the
period from March 5 through March 21, 2007, to ensure that these fees
are also in compliance with the requirements of Rule 610.
[[Page 17970]]
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\8\ in general, and with Section
6(b)(4) 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 Nasdaq operates or controls. Nasdaq believes that this change
will ensure that the level of fees and rebates associated with trading
securities at prices under $1 is consistent with the value of these
securities, the costs of routing orders to other market centers for
execution, and the requirements of Rule 610 of Regulation NMS.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 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
Because the foregoing rule change establishes or changes a due,
fee, or other charge applicable only to a member imposed by Nasdaq, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \10\
and subparagraph (f)(2) of Rule 19b-4 thereunder.\11\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2007-026 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-2007-026. 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 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-2007-026 and should be submitted on or before May
1, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-6674 Filed 4-9-07; 8:45 am]
BILLING CODE 8010-01-P
