Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Augment the TotalView Enterprise License, 19566-19567 [E7-7319]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 74 (Wednesday, April 18, 2007)]
[Notices]
[Pages 19566-19567]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7319]



[[Page 19566]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55610; File No. SR-NASDAQ-2007-034]


 Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Augment the TotalView Enterprise License

April 10, 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 30, 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 and 
II below, which Items have been substantially prepared by Nasdaq. The 
Exchange has filed the proposal as a ``non-controversial'' 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.
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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)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq is proposing to add Nasdaq OpenView, which contains full 
depth of book data for Nasdaq trading of NYSE and Amex stocks, to the 
TotalView Enterprise License set forth in Nasdaq Rule 7023(a). The text 
of the proposed rule change is available at Nasdaq, the Commission's 
Public Reference Room, and www.nasdaq.com. 

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
    On February 12, 2007, Nasdaq completed the implementation of the 
new Nasdaq Market Center Execution System, commonly known as ``Single 
Book.'' The Single Book is the product of the integration of Nasdaq's 
three separate execution platforms into a single platform trading all 
Nasdaq, NYSE, and Amex securities.
    A by-product of this integration and the new system is a re-
alignment of Nasdaq data feeds. Under the previous systems, market data 
for Nasdaq securities was disseminated on one set of data feeds and 
market data for NYSE and Amex securities was disseminated on another. 
Because the Single Book processes Nasdaq, NYSE, and Amex securities on 
a single platform, the market data for all securities is disseminated 
on a single set of data feeds. For example, full depth of book data for 
Nasdaq securities was previously disseminated via one feed and full 
depth data for NYSE and Amex securities was disseminated via another. 
Starting February 12, 2007, market participants' best bids and offers 
for all securities are disseminated together via various unified data 
feeds. Full depth of book data for Nasdaq securities and for NYSE and 
Amex securities are now also disseminated via a unified full depth of 
book feed, made available in various formats.
    Nasdaq has not received regulatory approval for the fee schedule 
for its new unified system and data feeds. In November 2006, Nasdaq 
filed SR-NASDAQ-2006-048,\5\ a proposed rule change to lower the 
distributor fees applicable to the full depth feed emanating from the 
Single Book which has not yet been approved. Therefore, Nasdaq must 
continue to assess its previously-approved fees to its new data feeds. 
This situation results in economic continuity in that market data 
recipients will continue to pay the same amount if they continue to 
receive the same market data elements. Thus, for example, a 
professional user that receives full depth of book for both Nasdaq and 
NYSE/Amex stocks in the past paid $70 for the Nasdaq data and $6 for 
the NYSE/Amex data, and will continue to pay that amount in the future.
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    \5\ See Securities Exchange Act Release No. 55443 (March 12, 
2007), 72 FR 13325 (March 21, 2007).
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    With respect to purchasers of the TotalView Enterprise License, 
however, Nasdaq's inability to gain approval of its unified fee 
schedule will cause economic harm. Nasdaq had intended that purchasers 
of the TotalView Enterprise License would, upon the launch of the 
Single Book on February 12, 2007, have gained the ability to distribute 
the unified TotalView feed containing full depth of book for Nasdaq, 
NYSE, and Amex securities. Because Nasdaq has not received final 
approval of the unified feeds and fee schedule, it is unclear that the 
Enterprise License includes the ability to distribute market data for 
NYSE and Amex stocks.
    Accordingly, Nasdaq is proposing to add the current OpenView feed 
to the Enterprise License, thereby clearly establishing that purchasers 
of the Enterprise License have the ability to distribute full depth of 
book for Nasdaq, NYSE, and Amex securities for the same currently 
approved fee. This will be a benefit to purchasers of the Enterprise 
License in that they will be permitted to distribute more data for the 
same fee.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general, and with Section 
6(b)(4) of the Act,\7\ in particular, in that adding OpenView to the 
TotalView Enterprise License will encourage broader dissemination of 
that data and thereby increase transparency in those securities.
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    \6\ 15 U.S.C. 78f.
    \7\ 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

    Because the foregoing rule change does not: (1) Significantly 
affect the protection of investors or the public interest; (2) impose 
any significant burden on competition; and (3) become operative for 30 
days after the date of this filing, or such shorter time as the 
Commission may designate, it has

[[Page 19567]]

become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and 
Rule 19b-4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\10\ 
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because such waiver 
would permit Nasdaq to implement the proposed rule change on April 1, 
2007, clarifying that the Enterprise License includes the ability to 
distribute market data for NYSE and Amex securities. For this reason, 
the Commission designates the proposed rule change to be operative upon 
filing with the Commission.\12\
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    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to 
the Commission written notice of its intent to file the proposed 
rule change, along with a brief description and text of the proposed 
rule change, at least five business days prior to the date of filing 
of the proposed rule change, or such shorter time as designated by 
the Commission. The Exchange has requested that the Commission waive 
the 5-day pre-filing notice requirement. The Commission has 
determined to grant this request.
    \11\ Id.
    \12\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such 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 
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-2007-034 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-2007-034. 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-2007-034 and should be submitted on or before May 
9, 2007.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-7319 Filed 4-17-07; 8:45 am]
BILLING CODE 8010-01-P