Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of Proposed Rule Change to Modify the Distributor Fee for Nasdaq Index Weighting Information, 29565 [E7-10207]
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Federal Register / Vol. 72, No. 102 / Tuesday, May 29, 2007 / Notices
requiring each small-staff OSJ to have an
on-site municipal securities principal
for supervision of the activities in that
office adds an undue burden to dealers
that, in many cases, is either impractical
or not cost effective. Banc of America
believes that if the proposed rule change
is approved, dealers may be forced to
close certain regional offices, since
adding staff would not be cost effective;
in turn, this could lead to a reduction
in financing services, and/or increased
borrowing costs, to issuers of municipal
securities.
The MSRB states in its response that
under current NASD requirements and
the MSRB’s proposed amendments,
dealers must designate one or more
appropriately registered principals in
each OSJ and each such principal must
be located on site in each OSJ. The
MSRB understands that in the equities
market, which is subject to NASD’s
supervisory requirements, there are
many one-person offices which, as OSJs,
are involved in structuring corporate
financing. The MSRB further
understands that such functions, when
performed at an OSJ, are significant
enough to warrant supervision by an onsite principal who is permanently
located in that office. The MSRB
concluded that in the case of the oneperson OSJ described by Banc of
America, the practical effect of the
proposed rule change on bank dealers
would be to require that one person to
be registered as a municipal securities
principal, just as NASD requires
securities firms to register as a principal
any one-person OSJ. The MSRB further
noted that the purpose of the proposed
rule change is to promote regulatory
consistency, and that the MSRB does
not believe that the situation described
by Banc of America justifies deviating
from this purpose. After considering
Banc of America’s comment letter and
the MSRB’s response, the Commission
finds that the proposed rule change
conforms Rule G–27 to the relevant
NASD rules on supervision and does
not believe that the proposed rule
change is inconsistent with the Act.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to the MSRB 7 and, in
particular, the requirements of Section
15B(b)(2)(C) of the Act 8 and the rules
and regulations thereunder. Section
15B(b)(2)(C) of the Act requires, among
7 In approving this rule the Commission notes
that it has considered the proposed rule’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
8 15 U.S.C. 78o–4(b)(2)(C).
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other things, that the MSRB’s rules be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in municipal
securities, to remove impediments to
and perfect the mechanism of a free and
open market in municipal securities,
and, in general, to protect investors and
the public interest.9 In particular, the
Commission finds that, by conforming
Rule G–27 to the relevant NASD rules
on supervision and thereby making such
requirements specifically applicable to
the municipal securities activities of
securities firms and bank dealers, the
proposed rule change will promote
regulatory consistency by facilitating
dealer compliance with such
requirements, as well as by facilitating
the inspection and enforcement thereof.
The proposal will be effective six
months after Commission approval, as
requested by the MSRB.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–MSRB–2006–
10) be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–10201 Filed 5–25–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55790; File No. SR–
NASDAQ–2007–039]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule
Change to Modify the Distributor Fee
for Nasdaq Index Weighting
Information
May 21, 2007.
On April 4, 2007, The NASDAQ Stock
Market LLC (‘‘Nasdaq’’) 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
decrease the distributor fee for the
lowest pricing tier for Nasdaq Index
9 Id.
10 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 17
PO 00000
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29565
Weighting Information. According to
Nasdaq, the lowest pricing tier is the
most common option selected by
existing customers. The proposed rule
change was published for comment in
the Federal Register on April 18, 2007.3
The Commission received no comments
on the proposed rule change.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange 4 and, in particular, the
requirements of Section 6(b)(4) of the
Act,5 which requires, among other
things, that Nasdaq’s rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other persons
using any facility or system which
Nasdaq operates or controls, and that it
not unfairly discriminate between
customers, issuers, brokers, or dealers.
Nasdaq proposes to decrease the
distributor fee for the tier that
encompasses one to 500 subscribers for
Nasdaq Index Weighting Information
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. The remaining tiers of the fee
schedules for Nasdaq Index Weighting
Information (i.e., fees for 501–999,
1,000–4,999, 5,000–9,999, and 10,000+
subscribers) will not change under this
proposal. The Commission believes that
decreasing the distributor fee for the
lowest pricing tier for Nasdaq Index
Weighting Information is beneficial to
the recipients of such data and should
encourage its broader distribution.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,6 that the
proposed rule change (SR–NASDAQ–
2007–039) be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–10207 Filed 5–25–07; 8:45 am]
BILLING CODE 8010–01–P
3 See Securities Exchange Act Release No. 55620
(April 12, 2007), 72 FR 19569.
4 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(4).
6 15 U.S.C. 78s(b)(2).
7 17 CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 72, Number 102 (Tuesday, May 29, 2007)]
[Notices]
[Page 29565]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-10207]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55790; File No. SR-NASDAQ-2007-039]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule Change to Modify the Distributor Fee
for Nasdaq Index Weighting Information
May 21, 2007.
On April 4, 2007, The NASDAQ Stock Market LLC (``Nasdaq'') 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 decrease
the distributor fee for the lowest pricing tier for Nasdaq Index
Weighting Information. According to Nasdaq, the lowest pricing tier is
the most common option selected by existing customers. The proposed
rule change was published for comment in the Federal Register on April
18, 2007.\3\ The Commission received no comments on the proposed rule
change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 55620 (April 12,
2007), 72 FR 19569.
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The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange \4\
and, in particular, the requirements of Section 6(b)(4) of the Act,\5\
which requires, among other things, that Nasdaq's rules provide for the
equitable allocation of reasonable dues, fees, and other charges among
its members and issuers and other persons using any facility or system
which Nasdaq operates or controls, and that it not unfairly
discriminate between customers, issuers, brokers, or dealers. Nasdaq
proposes to decrease the distributor fee for the tier that encompasses
one to 500 subscribers for Nasdaq Index Weighting Information 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. The remaining tiers of the fee schedules for Nasdaq Index
Weighting Information (i.e., fees for 501-999, 1,000-4,999, 5,000-
9,999, and 10,000+ subscribers) will not change under this proposal.
The Commission believes that decreasing the distributor fee for the
lowest pricing tier for Nasdaq Index Weighting Information is
beneficial to the recipients of such data and should encourage its
broader distribution.
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\4\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78f(b)(4).
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (SR-NASDAQ-2007-039) be, and
hereby is, approved.
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\6\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-10207 Filed 5-25-07; 8:45 am]
BILLING CODE 8010-01-P
