Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Increase the Nasdaq Trading Rights Fee, 25823-25824 [E7-8596]
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Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices
and executed in penny increments.
Such orders would no longer be
permitted to be executed at split prices.
[FR Doc. 07–2194 Filed 5–4–07; 8:45 am]
BILLING CODE 8010–01–C
III. Discussion
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55683; File No. SR–ISE–
2006–77]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Order Granting Approval to
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to Penny
Increments for Block Mechanism
Orders
April 30, 2007.
I. Introduction
On December 13, 2006, the
International Securities Exchange, LLC
(‘‘ISE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
allow orders to be entered into the Block
Mechanism in penny increments and to
receive executions in penny increments.
On March 19, 2007, the Exchange filed
Amendment No. 1 to the proposed rule
change. The proposed rule change was
published for comment in the Federal
Register on March 27, 2007.3 The
Commission received no comment
letters on the proposal. This order
approves the proposed rule change as
modified by Amendment No. 1.
II. Description of the Proposal
The Exchange currently offers a Block
Mechanism for the execution of singlesided, block-sized orders.4 The Block
Mechanism exposes orders of at least 50
contracts to all ISE members for three
seconds, giving members an opportunity
to respond with contra-side trading
interest for their own account or on
behalf of their customers.5 Currently,
orders may be entered and executed
using the Block Mechanism at the
standard 5 and 10 cent increments and
at ‘‘split prices’’ (2.5 cents for options
trading in 5 cent standard increments
and 5 cents for options trading in 10
cent standard increments). The
Exchange proposes to amend ISE Rule
716 to allow these orders to be entered
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 55493
(March 20, 2007), 72 FR 14315.
4 See ISE Rule 716(c).
5 Supplementary Material .03 to ISE Rule 716
prohibits members from entering Responses for the
account of an options market maker from another
options exchange. This is the only limitation
regarding who may enter Responses.
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After careful review of the proposal,
the Commission finds that the proposed
rule change, as modified by Amendment
No. 1, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.6 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(5) of the Act,7 which requires,
among other things, that the rules of an
exchange be designed to prevent
fraudulent and manipulative acts, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Specifically, the Commission believes
that the proposed rule change is
consistent with the Act because it will
provide greater flexibility in the pricing
of block-size orders and enhanced
opportunities for block-size orders to
receive price improvement.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–ISE–2006–
77), as modified by Amendment No. 1,
be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8597 Filed 5–4–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55678; File No. SR–
NASDAQ–2007–044]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Increase the
Nasdaq Trading Rights Fee
April 27, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(2).
9 17 CFR 200.30–3(a)(12).
PO 00000
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25823
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 25,
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 prepared substantially by
Nasdaq. Nasdaq filed the proposal
pursuant to Section 19(b)(3)(A)(ii) of the
Act 3 and Rule 19b–4(f)(2) 4 thereunder,
as establishing or changing a member
due, fee, or other charge, which renders
the proposed rule change 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 increase the
monthly trading rights fee paid by
Nasdaq members. Nasdaq will
implement this proposed rule change on
May 1, 2007. The text of the proposed
rule change is available at
Nasdaq, https://www.nasdaq.com, 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,
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 is increasing its monthly
trading rights fee, which is assessed on
all Nasdaq members, from $200 to $500
per month. The fee had initially been set
at a level to ease the transition of the
Nasdaq Market Center’s status as a
facility of the NASD to a facility of a
new self-regulatory organization
(‘‘SRO’’). Now that Nasdaq has an
established membership base, Nasdaq
believes that the fee increase is
1 15
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
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07MYN1
25824
Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices
warranted to ensure that its monthly
and annual membership fees fund a
greater portion of the cost of regulating
the Nasdaq market. Nasdaq believes that
even with the fee increase, the cost of
Nasdaq membership is generally lower
than the cost of membership in other
SROs.5 In this regard, it is particularly
notable that unlike other SROs, Nasdaq
does not charge annual registration fees
for each of a firm’s registered
representatives.
Nasdaq is also deleting language from
Rule 7001 that waived the application
fee for NASD members applying for
Nasdaq membership prior to August 1,
2006.
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 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 an increased monthly
trading rights fee is a reasonable and
equitable method of ensuring that its
monthly and annual membership fees
fund a greater portion of the cost of
regulating the Nasdaq market, and that
the overall cost of Nasdaq membership
is reasonable as compared with the cost
of membership in other SROs.
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, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received form
Members, Participants, or Others
pwalker on PROD1PC71 with NOTICES
Written comments were neither
solicited nor received.
5 See, e.g., New York Stock Exchange Price List
2007 at https://www.nyse.com/pdfs/2007pricelist.pdf
(itemizing numerous registration, regulation, and
trading rights fees); NASD By-Laws Schedule A,
Section 1 at https://nasd.complinet.com/n nasd/
display/display.html?rbid=1189&element_
id=1159000126; Chicago Stock Exchange Fees and
Assessments at https://wallstreet.cch.com/CHXtools/
PlatformViewer.asp?SelectedNode=chp_1_
1&manual=/CHX/Admin/chx-feesandassessments/.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
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18:36 May 04, 2007
Jkt 211001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing with
the Commission pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and Rule 19b–
4(f)(2) thereunder,9 in that the proposed
rule change establishes or changes a
member due, fee, or other charge
imposed by the self-regulatory
organization. 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.
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–2007–044 and
should be submitted on or before May
29, 2007.
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:
BILLING CODE 8010–01–P
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–2007–044 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–
2007–044. 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
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8596 Filed 5–4–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55687; File No. SR–NYSE–
2007–27]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Amendment No. 3 to
Proposed Rule Change and Order
Granting Accelerated Approval to
Proposed Rule Change, as Modified by
Amendments No. 1, 2, and 3 Thereto,
To Adopt Generic Listing Standards
for Index-Linked Securities
May 1, 2007.
I. Introduction
On March 9, 2007, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt generic listing standards for
equity index-linked securities (‘‘Equity
Index-Linked Securities’’), commoditylinked securities (‘‘Commodity-Linked
Securities’’), and currency-linked
securities (‘‘Currency-Linked
Securities’’ and, together with Equity
Index-Linked Securities and
Commodity-Linked Securities, ‘‘IndexLinked Securities’’). On April 4, 2007,
Exchange filed Amendment No. 1 to the
proposed rule change. On April 5, 2007,
the Exchange filed Amendment No. 2 to
the proposed rule change. The proposed
rule change, as amended, was published
for comment in the Federal Register on
10 17
8 15
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 72, Number 87 (Monday, May 7, 2007)]
[Notices]
[Pages 25823-25824]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8596]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55678; File No. SR-NASDAQ-2007-044]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Increase the Nasdaq Trading Rights Fee
April 27, 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 25, 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 prepared substantially by Nasdaq. Nasdaq filed the proposal
pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
\4\ thereunder, as establishing or changing a member due, fee, or other
charge, which renders the proposed rule change 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)(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 increase the monthly trading rights fee paid by
Nasdaq members. Nasdaq will implement this proposed rule change on May
1, 2007. The text of the proposed rule change is available at Nasdaq,
https://www.nasdaq.com, 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, 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 is increasing its monthly trading rights fee, which is
assessed on all Nasdaq members, from $200 to $500 per month. The fee
had initially been set at a level to ease the transition of the Nasdaq
Market Center's status as a facility of the NASD to a facility of a new
self-regulatory organization (``SRO''). Now that Nasdaq has an
established membership base, Nasdaq believes that the fee increase is
[[Page 25824]]
warranted to ensure that its monthly and annual membership fees fund a
greater portion of the cost of regulating the Nasdaq market. Nasdaq
believes that even with the fee increase, the cost of Nasdaq membership
is generally lower than the cost of membership in other SROs.\5\ In
this regard, it is particularly notable that unlike other SROs, Nasdaq
does not charge annual registration fees for each of a firm's
registered representatives.
---------------------------------------------------------------------------
\5\ See, e.g., New York Stock Exchange Price List 2007 at http:/
/www.nyse.com/pdfs/2007pricelist.pdf (itemizing numerous
registration, regulation, and trading rights fees); NASD By-Laws
Schedule A, Section 1 at https://nasd.complinet.com/nasd/display/
display.html?rbid=1189&element_id=1159000126; Chicago Stock
Exchange Fees and Assessments at https://wallstreet.cch.com/CHXtools/
PlatformViewer.asp?SelectedNode=chp_1_1&manual=/CHX/Admin/chx-
feesandassessments/.
---------------------------------------------------------------------------
Nasdaq is also deleting language from Rule 7001 that waived the
application fee for NASD members applying for Nasdaq membership prior
to August 1, 2006.
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 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 an increased
monthly trading rights fee is a reasonable and equitable method of
ensuring that its monthly and annual membership fees fund a greater
portion of the cost of regulating the Nasdaq market, and that the
overall cost of Nasdaq membership is reasonable as compared with the
cost of membership in other SROs.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 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, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received form 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 has become effective upon filing
with the Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \8\
and Rule 19b-4(f)(2) thereunder,\9\ in that the proposed rule change
establishes or changes a member due, fee, or other charge imposed by
the self-regulatory organization. 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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-2007-044 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-2007-044. 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-
044 and should be submitted on or before May 29, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8596 Filed 5-4-07; 8:45 am]
BILLING CODE 8010-01-P
