Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Members Using the Nasdaq Market Center, 41093-41094 [E7-14386]

Download as PDF Federal Register / Vol. 72, No. 143 / Thursday, July 26, 2007 / Notices This meeting will be webcast live at the Web address—www.nrc.gov. * * * * * *The schedule for Commission meetings is subject to change on short notice. To verify the status of meetings call (recording)—(301) 415–1292. Contact person for more information: Michelle Schroll, (301) 415–1662. * * * * * The NRC Commission Meeting Schedule can be found on the Internet at: www.nrc.gov/what-we-do/policymaking/schedule.html. * * * * * The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in these public meetings, or need this meeting notice or the transcript or other information from the public meetings in another format (e.g. braille, large print), please notify the NRC’s Disability Program Coordinator, Rohn Brown, at 301–415–2279, TDD: 301–415–2100, or by e-mail at REB3@nrc.gov. Determinations on requests for reasonable accommodation will be made on a case-by-case basis. * * * * * This notice is distributed by mail to several hundred subscribers; if you no longer wish to receive it, or would like to be added to the distribution, please contact the Office of the Secretary, Washington, DC 20555 (301–415–1969). In addition, distribution of this meeting notice over the Internet system is available. If you are interested in receiving this Commission meeting schedule electronically, please send an electronic message to dkw@nrc.gov. Dated: July 23, 2007. R. Michelle Schroll, Office of the Secretary. [FR Doc. 07–3676 Filed 7–24–07; 12:16 pm] BILLING CODE 7590–01–P rwilkins on PROD1PC63 with NOTICES [Release No. 34–56112; File No. SR– NASDAQ–2007–064] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Members Using the Nasdaq Market Center Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 VerDate Aug<31>2005 16:36 Jul 25, 2007 Jkt 211001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify pricing for Nasdaq members using the Nasdaq Market Center. Nasdaq will implement this rule change on July 2, 2007. The text of the proposed rule change is available at Nasdaq, 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, the Exchange 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. The Exchange 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 SECURITIES AND EXCHANGE COMMISSION July 20, 2007. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 2, 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 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 due, fee, or other charge applicable to a member, 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.Purpose On June 1, 2007,5 Nasdaq increased its fees for routing orders in securities other than exchange-traded funds to the New York Stock Exchange (‘‘NYSE’’) in instances where the order does not check the Nasdaq book prior to routing. 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). 5 See Securities Exchange Act Release No. 55979 (June 28, 2007), 72 FR 37065 (July 6, 2007) ((SR– NASDAQ–2007–055) (May 29, 2007)). PO 00000 1 15 2 17 Frm 00045 Fmt 4703 Sfmt 4703 41093 Nasdaq also changed its fee schedule to provide that orders that do not attempt to execute in Nasdaq prior to routing to other venues do not count in determining a member’s average daily volume of shares of liquidity accessed and/or routed for purposes of determining the pricing tier applicable to a particular member. Nasdaq is now further amending the fee schedule to increase the fees for orders that check the Nasdaq book but only to the extent of displayed liquidity, rather than for the full size of the order. Market participants using Nasdaq for routing orders have the ability to instruct as to the conditions under which routing should occur. One possibility is to route without checking the Nasdaq book; another is to route after checking the Nasdaq book only to extent of displayed liquidity; and another is to send the full order for execution against the book prior to routing, thereby allowing undisplayed reserved size to be accessed. For example, if displayed size at the inside was 1000 shares and 10,000 shares were in reserve at that price, an order for 10,000 shares could be fully executed in Nasdaq if the full order was sent, but would be routed if the order accessed only the displayed size. Both the changes made in the instant proposed rule change and the changes made in SR–NASDAQ–2007–055 are designed to enhance the quality of Nasdaq’s market by providing an incentive for members to enter orders that check the full size of the Nasdaq book prior to routing. An increase in the extent to which members check the book will in turn encourage liquidity providers to post executable quotes in Nasdaq. Moreover, since there is generally far more undisplayed liquidity than displayed liquidity at the inside price, the proposed change will encourage members to execute their orders in Nasdaq to the fullest extent possible. For orders that check the book only to the extent of displayed interest, the fee will be $0.00035 per share executed when routed to the NYSE for execution and $0.0035 per share executed when routed elsewhere. At the same time, however, Nasdaq is lowering the fee for Directed Intermarket Sweep Orders sent to the NYSE, from $0.0035 to $0.00035 per share executed, in keeping with the overall prevailing level of fees for routing to NYSE. Finally, for the month of July 2007, Nasdaq is lowering: (i) The volume level required for receiving a liquidity provider credit of $0.0025 per share executed from 35 million average daily shares of liquidity provided to 30 E:\FR\FM\26JYN1.SGM 26JYN1 41094 Federal Register / Vol. 72, No. 143 / Thursday, July 26, 2007 / Notices million average daily shares of liquidity provided; (ii) the volume level required for paying a fee of $0.000275 per share executed when routing to the NYSE from 35 million average daily shares of liquidity provided to 30 million average daily shares of liquidity provided; and (iii) one of the criteria for paying an execution/routing fee of $0.0026 per share executed from 35 million average daily shares of liquidity provided to 30 million average daily shares of liquidity provided.6 The change reflects Nasdaq’s expectation that overall trading volumes will be low during the month of July due to the Fourth of July holiday and the vacation schedules of member employees. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,7 in general, and with Section 6(b)(4) of the Act,8 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 the fee change reflects an allocation of fees that recognizes the benefits to Nasdaq market quality of liquidity provision and orders that access all available liquidity in Nasdaq prior to routing. 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 rwilkins on PROD1PC63 with NOTICES The foregoing proposed rule change has become effective upon filing with the Commission pursuant to Section 6 Specifically, in July 2007, the $0.0026 fee will be available to members with an average daily volume through the Nasdaq Market Center in all securities during the month of: (i) More than 30 million shares of liquidity provided, and (ii) more than 55 million shares of liquidity accessed and/or routed; or: (i) More than 25 million shares of liquidity provided, and (ii) more than 65 million shares of liquidity accessed and/or routed. 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 16:36 Jul 25, 2007 Jkt 211001 19(b)(3)(A)(ii) of the Act 9 and Rule 19b– 4(f)(2) thereunder,10 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. 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2007–064 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–2007–064. 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 (http://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, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be PO 00000 9 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 10 17 Frm 00046 Fmt 4703 Sfmt 4703 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–2007–064 and should be submitted on or before August 16, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–14386 Filed 7–25–07; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF TRANSPORTATION Federal Highway Administration [Docket No. FHWA–2007–28755] Agency Information Collection Activities: Request for Comments for a New Information Collection Federal Highway Administration (FHWA), DOT. ACTION: Notice and request for comments. AGENCY: SUMMARY: The FHWA invites public comments about our intention to request the Office of Management and Budget’s (OMB) approval for a new information collection, which is summarized below under Supplementary Information. We are required to publish this notice in the Federal Register by the Paperwork Reduction Act of 1995. DATES: Please submit comments by September 24, 2007. ADDRESSES: You may submit comments identified by DOT DMS Docket Number FHWA-2007–28755 by any of the following methods: Web Site: http://dms.dot.gov. Follow the instructions for submitting comments on the DOT electronic docket site. Fax: 1–202–493–2251. Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. Hand Delivery: U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Docket: For access to the docket to read background documents or 11 17 E:\FR\FM\26JYN1.SGM CFR 200.30–3(a)(12). 26JYN1

Agencies

[Federal Register Volume 72, Number 143 (Thursday, July 26, 2007)]
[Notices]
[Pages 41093-41094]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14386]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56112; File No. SR-NASDAQ-2007-064]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Fees for Members Using the Nasdaq Market Center

July 20, 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 July 2, 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 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 due, fee, or other charge applicable to a member, 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.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to modify pricing for Nasdaq members using the 
Nasdaq Market Center. Nasdaq will implement this rule change on July 2, 
2007. The text of the proposed rule change is available at Nasdaq, 
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, the Exchange 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. The Exchange 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 June 1, 2007,\5\ Nasdaq increased its fees for routing orders in 
securities other than exchange-traded funds to the New York Stock 
Exchange (``NYSE'') in instances where the order does not check the 
Nasdaq book prior to routing. Nasdaq also changed its fee schedule to 
provide that orders that do not attempt to execute in Nasdaq prior to 
routing to other venues do not count in determining a member's average 
daily volume of shares of liquidity accessed and/or routed for purposes 
of determining the pricing tier applicable to a particular member. 
Nasdaq is now further amending the fee schedule to increase the fees 
for orders that check the Nasdaq book but only to the extent of 
displayed liquidity, rather than for the full size of the order.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 55979 (June 28, 
2007), 72 FR 37065 (July 6, 2007) ((SR-NASDAQ-2007-055) (May 29, 
2007)).
---------------------------------------------------------------------------

    Market participants using Nasdaq for routing orders have the 
ability to instruct as to the conditions under which routing should 
occur. One possibility is to route without checking the Nasdaq book; 
another is to route after checking the Nasdaq book only to extent of 
displayed liquidity; and another is to send the full order for 
execution against the book prior to routing, thereby allowing 
undisplayed reserved size to be accessed. For example, if displayed 
size at the inside was 1000 shares and 10,000 shares were in reserve at 
that price, an order for 10,000 shares could be fully executed in 
Nasdaq if the full order was sent, but would be routed if the order 
accessed only the displayed size.
    Both the changes made in the instant proposed rule change and the 
changes made in SR-NASDAQ-2007-055 are designed to enhance the quality 
of Nasdaq's market by providing an incentive for members to enter 
orders that check the full size of the Nasdaq book prior to routing. An 
increase in the extent to which members check the book will in turn 
encourage liquidity providers to post executable quotes in Nasdaq. 
Moreover, since there is generally far more undisplayed liquidity than 
displayed liquidity at the inside price, the proposed change will 
encourage members to execute their orders in Nasdaq to the fullest 
extent possible.
    For orders that check the book only to the extent of displayed 
interest, the fee will be $0.00035 per share executed when routed to 
the NYSE for execution and $0.0035 per share executed when routed 
elsewhere. At the same time, however, Nasdaq is lowering the fee for 
Directed Intermarket Sweep Orders sent to the NYSE, from $0.0035 to 
$0.00035 per share executed, in keeping with the overall prevailing 
level of fees for routing to NYSE.
    Finally, for the month of July 2007, Nasdaq is lowering: (i) The 
volume level required for receiving a liquidity provider credit of 
$0.0025 per share executed from 35 million average daily shares of 
liquidity provided to 30

[[Page 41094]]

million average daily shares of liquidity provided; (ii) the volume 
level required for paying a fee of $0.000275 per share executed when 
routing to the NYSE from 35 million average daily shares of liquidity 
provided to 30 million average daily shares of liquidity provided; and 
(iii) one of the criteria for paying an execution/routing fee of 
$0.0026 per share executed from 35 million average daily shares of 
liquidity provided to 30 million average daily shares of liquidity 
provided.\6\ The change reflects Nasdaq's expectation that overall 
trading volumes will be low during the month of July due to the Fourth 
of July holiday and the vacation schedules of member employees.
---------------------------------------------------------------------------

    \6\ Specifically, in July 2007, the $0.0026 fee will be 
available to members with an average daily volume through the Nasdaq 
Market Center in all securities during the month of: (i) More than 
30 million shares of liquidity provided, and (ii) more than 55 
million shares of liquidity accessed and/or routed; or: (i) More 
than 25 million shares of liquidity provided, and (ii) more than 65 
million shares of liquidity accessed and/or routed.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with Section 
6(b)(4) of the Act,\8\ 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 the fee change 
reflects an allocation of fees that recognizes the benefits to Nasdaq 
market quality of liquidity provision and orders that access all 
available liquidity in Nasdaq prior to routing.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 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

    The foregoing proposed rule change has become effective upon filing 
with the Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ 
and Rule 19b-4(f)(2) thereunder,\10\ 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2007-064 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-2007-064. 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 (http://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, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. 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-2007-064 and should 
be submitted on or before August 16, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-14386 Filed 7-25-07; 8:45 am]
BILLING CODE 8010-01-P