Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Modify the Distributor Fee for Nasdaq Index Weighting Information, 19569-19570 [E7-7330]

Download as PDF Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–7320 Filed 4–17–07; 8:45 am] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55620; File No. SR– NASDAQ–2007–039] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Modify the Distributor Fee for Nasdaq Index Weighting Information April 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 April 4, 2007, 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. 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 distributor fees for Nasdaq Index Weighting Information. The text of the proposed rule change is available at Nasdaq, the Commission’s Public Reference Room, and www.nasdaq.com. pwalker on PROD1PC71 with NOTICES 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 had 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. The purpose of the proposed rule change is to modify distributor fees for Nasdaq Index Weighting Information. Nasdaq disseminates Nasdaq Index Weighting data via the Nasdaq Index Dissemination Service (‘‘NIDS’’) data feed and via the Nasdaq Trader Web site. Nasdaq Index Weighting reports include component and weighting information for a number of Nasdaq indices on a daily basis. Market participants pay a fee to obtain a license to distribute the Index Weighting Information to end users. The fees are based on the number of end users (whether internal or external to the organization) and the frequency of the distribution. The fees permitting distribution with unlimited frequency range from $1000 for the right to distribute the data to 1–500 subscribers up to $5,000 for the right to distribute to 10,000+ subscribers. The fees permitting distribution of data once a month, quarter, or year range from $500 for the right to distribute data to 1–500 subscribers to $1,000 for the right to distribute to 10,000+ subscribers. The proposed rule change would decrease the distributor fee for the lowest pricing tier, 1–500 subscribers, from $1,000 to $300 in the case of unlimited frequency of distribution, and from $500 to $275 in the case of distribution once a month, quarter, or year. Although the fee schedules provide for multiple tiered pricing based on the number of end users, the lowest pricing tier is the most common option selected by existing customers. The proposed fee would apply to distributors receiving the data via any delivery platform, including via NIDS or the Nasdaq Trader Web site. Distributors receiving the data via more than one delivery platform would be charged only once. The remaining tiers of the fee schedules (i.e., fees for 501–999, 1,000– 4,999, 5,000–9,999, and 10,000+ subscribers) will not change under this proposal. Nasdaq believes that the fee decrease would make this data report more attractive to vendors who may already be receiving and distributing other Nasdaq data feeds, thereby promoting the broader dissemination of Index Weighting Information. 2. Statutory Basis 12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Aug<31>2005 17:04 Apr 17, 2007 Nasdaq believes that the proposed rule change is consistent with the Jkt 211001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 19569 provisions of Section 6 of the Act,3 in general, and with Section 6(b)(4) of the Act,4 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 the Nasdaq operates or controls, and it does not unfairly discriminate between customers, issuers, brokers, or dealers. The proposed rule change reflects demand patterns for Index Weighting Information and is designed to provide an equitable allocation of fees across the customer base of Nasdaq market data distributors. Nasdaq further believes that this rule change would encourage the broader distribution of the Index Weighting data, thus improving transparency and thereby benefiting the investing public. 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 Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding, or (ii) as to which Nasdaq consents, the Commission will: (A) by order approve such proposed rule change; or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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: 3 15 4 15 E:\FR\FM\18APN1.SGM U.S.C. 78f. U.S.C. 78f(b)(4). 18APN1 19570 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 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 Number SR–NASDAQ–2007–039 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55618; File No. SR–NYSE– 2007–32] Self-Regulatory Organizations; New York Stock Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, and Amendment No. 1 Thereto, Relating to Rule 15B(T) (Protected Bids and Offers of Away Markets) pwalker on PROD1PC71 with NOTICES BILLING CODE 8010–01–P In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 417 CFR 240.19b–4(f)(6). 5 17 CFR 242.600 et seq. 2 17 5 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:04 Apr 17, 2007 Jkt 211001 PO 00000 Frm 00110 Fmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose April 11, 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, All submissions should refer to File 2007, the New York Stock Exchange, Number SR–NASDAQ–2007–039. This LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with file number should be included on the subject line if e-mail is used. To help the the Securities and Exchange Commission (‘‘Commission’’) the Commission process and review your proposed rule change as described in comments more efficiently, please use Items I and II below, which Items have only one method. The Commission will been substantially prepared by the post all comments on the Commission’s NYSE. The Exchange filed the proposal 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. On with respect to the proposed rule April 9, 2007, the Exchange filed change that are filed with the Amendment No. 1 to the proposed rule Commission, and all written change. The Commission is publishing communications relating to the this notice to solicit comments on the proposed rule change between the proposed rule change, as amended, from Commission and any person, other than interested persons. those that may be withheld from the I. Self-Regulatory Organization’s public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be the Proposed Rule Change available for inspection and copying in The Exchange proposes to rescind the Commission’s Public Reference Room. Copies of such filing also will be NYSE Rule 15B(T), a temporary rule which describes the obligations of available for inspection and copying at Exchange member organizations when the principal office of Nasdaq. All sending Intermarket Sweep Orders comments received will be posted (‘‘ISOs’’) to the Exchange prior to March without change; the Commission does 5, 2007, the Trading Phase Date of not edit personal identifying Regulation NMS under the Act 5 (‘‘Reg information from submissions. You NMS’’). The text of the proposed rule should submit only information that change is available at the Exchange, on you wish to make publicly available. All the Exchange’s Web site at https:// submissions should refer to File www.nyse.com, and at the Commission’s Number SR–NASDAQ–2007–039 and Public Reference Room. should be submitted on or before May II. Self-Regulatory Organization’s 9, 2007. Statement of the Purpose of, and For the Commission, by the Division of Statutory Basis for, the Proposed Rule Market Regulation, pursuant to delegated Change authority.5 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–7330 Filed 4–17–07; 8:45 am] proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. Sfmt 4703 On January 26, 2007, the Exchange adopted NYSE Rule 15B(T),6 which requires member organizations that send ISOs to the Exchange prior to March 5, 2007, the Trading Phase Date of Reg. NMS, to simultaneously send an ISO (or comparable order) for the full displayed size of the top of the book of every other ITS participant displaying a betterpriced protected quotation.7 Given that ISO requirements are contained in NYSE Rule 13 now that the Trading Phase Date has passed, the Exchange, through this filing, seeks to delete NYSE Rule 15B(T) from Exchange Rules in order to eliminate potential confusion regarding the procedures for member organizations when sending ISOs to the Exchange. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirement under Section 6(b)(5) of the Act 8 that an Exchange have rules that are designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and national market system, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 6 See Securities Exchange Act Release No. 55210 (January 31, 2007), 72 FR 5777 (February 7, 2007) (SR–NYSE–2007–08). 7 See telephone conversation between Craig Hammond, Managing Director, Office of General Counsel, NYSE, and Christopher W. Chow, Special Counsel, Division of Market Regulation Commission, on April 11, 2007. 8 15 U.S.C. 78f(b)(5). E:\FR\FM\18APN1.SGM 18APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 74 (Wednesday, April 18, 2007)]
[Notices]
[Pages 19569-19570]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7330]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55620; File No. SR-NASDAQ-2007-039]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing of Proposed Rule Change To Modify the Distributor Fee 
for Nasdaq Index Weighting Information

 April 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 April 4, 2007, 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. 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to modify distributor fees for Nasdaq Index 
Weighting Information. 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 had 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
    The purpose of the proposed rule change is to modify distributor 
fees for Nasdaq Index Weighting Information.
    Nasdaq disseminates Nasdaq Index Weighting data via the Nasdaq 
Index Dissemination Service (``NIDS'') data feed and via the Nasdaq 
Trader Web site. Nasdaq Index Weighting reports include component and 
weighting information for a number of Nasdaq indices on a daily basis. 
Market participants pay a fee to obtain a license to distribute the 
Index Weighting Information to end users. The fees are based on the 
number of end users (whether internal or external to the organization) 
and the frequency of the distribution. The fees permitting distribution 
with unlimited frequency range from $1000 for the right to distribute 
the data to 1-500 subscribers up to $5,000 for the right to distribute 
to 10,000+ subscribers. The fees permitting distribution of data once a 
month, quarter, or year range from $500 for the right to distribute 
data to 1-500 subscribers to $1,000 for the right to distribute to 
10,000+ subscribers.
    The proposed rule change would decrease the distributor fee for the 
lowest pricing tier, 1-500 subscribers, from $1,000 to $300 in the case 
of unlimited frequency of distribution, and from $500 to $275 in the 
case of distribution once a month, quarter, or year. Although the fee 
schedules provide for multiple tiered pricing based on the number of 
end users, the lowest pricing tier is the most common option selected 
by existing customers. The proposed fee would apply to distributors 
receiving the data via any delivery platform, including via NIDS or the 
Nasdaq Trader Web site. Distributors receiving the data via more than 
one delivery platform would be charged only once. The remaining tiers 
of the fee schedules (i.e., fees for 501-999, 1,000-4,999, 5,000-9,999, 
and 10,000+ subscribers) will not change under this proposal.
    Nasdaq believes that the fee decrease would make this data report 
more attractive to vendors who may already be receiving and 
distributing other Nasdaq data feeds, thereby promoting the broader 
dissemination of Index Weighting Information.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\3\ in general, and with Section 
6(b)(4) of the Act,\4\ 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 the Nasdaq operates or controls, and it does not unfairly 
discriminate between customers, issuers, brokers, or dealers. The 
proposed rule change reflects demand patterns for Index Weighting 
Information and is designed to provide an equitable allocation of fees 
across the customer base of Nasdaq market data distributors. Nasdaq 
further believes that this rule change would encourage the broader 
distribution of the Index Weighting data, thus improving transparency 
and thereby benefiting the investing public.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f.
    \4\ 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which Nasdaq consents, the Commission will:
    (A) by order approve such proposed rule change; or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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:

[[Page 19570]]

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-2007-039 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2007-039. 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 publicly available. All submissions should refer to 
File Number SR-NASDAQ-2007-039 and should be submitted on or before May 
9, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-7330 Filed 4-17-07; 8:45 am]
BILLING CODE 8010-01-P

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