Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Temporarily Waive Risk Management Workstation Fees, 43309-43310 [E7-15069]

Download as PDF Federal Register / Vol. 72, No. 149 / Friday, August 3, 2007 / Notices 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 the ISE. 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–ISE–2007–64 and should be submitted on or before August 24, 2007. CTCI fee .............................................................. WebLink ACT or Nasdaq Workstation Post Trade.. ACT Workstation. .............................................. mstockstill on PROD1PC66 with NOTICES (f)–(g) No Change. 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 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E7–15093 Filed 8–2–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56153; File No. SR– NASDAQ–2007–057] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Temporarily Waive Risk Management Workstation Fees July 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 June 6, 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. Pursuant to section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 4(f)(2) thereunder,4 Nasdaq has designated this proposal as establishing or changing a due, fee, or other charge, which renders the proposed rule change effective immediately upon filing. The Commission is publishing this notice to solicit comments on the 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 proposing to offer free access to its enhanced Risk Management 3 15 1 15 4 17 18:17 Aug 02, 2007 Jkt 211001 proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to offer free access to its enhanced Risk Management workstation functionality to clearing firms that elect to use Nasdaq’s away market execution drop copy service for a trial period extending through third quarter 2007. Nasdaq will implement this rule change immediately. The text of the proposed rule change is below. Proposed new language is in italics.5 7015. Access Services. The following charges are assessed by Nasdaq for connectivity to the Nasdaq Market Center (NMC), the NASD/ NASDAQ Trade Reporting Facility, and the NASD’s OTCBB Service. The fees established under Rule 7015 for nonNasdaq members using Nasdaq services for connectivity to the NMC, the NASD/ NASDAQ Trade Reporting Facility, or the NASD’s OTCBB Service shall be the fees established for members under this Rule 7015, as in effect on the date of Nasdaq’s registration as a national securities exchange and as amended by SR–NASDAQ–2006–024 and SR– NASDAQ–2006–025, and as applied to non-members by SR–NASDAQ–2006– 026. (a)–(d) No Change (e) Specialized Services Related to NASD/NASDAQ Trade Reporting Facility $575/month. $375/month (full functionality) or $200/month (up to an average of twenty transactions per day each month) (For the purposes of this service only, a transaction is defined as an original trade entry, either on trade date or as-of transactions per month.) For a trial period ending September 30, 2007, the above fee shall not be imposed on any number of workstations equal to, or less than, the number of away market centers from which a clearing firm elects to have Nasdaq’s Risk Management System receive execution drop copies, $525/logon/month 12 17 VerDate Aug<31>2005 43309 PO 00000 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). Frm 00088 Fmt 4703 Sfmt 4703 workstation functionality to clearing firms that elect to use Nasdaq’s away market execution drop copy service for a trial period extending through the third quarter of 2007. Nasdaq Risk Management is a credit risk management tool that allows clearing firms to view in real time the dollars engaged by their correspondents (executing brokers) by side and security in U.S. equity transactions. Historically, this product was able to capture only 5 Changes are marked to the rule text that appears in the electronic Nasdaq Manual found at http:// nasdaq.complinet.com. E:\FR\FM\03AUN1.SGM 03AUN1 43310 Federal Register / Vol. 72, No. 149 / Friday, August 3, 2007 / Notices Nasdaq Market Center trading activity. Recently, however, Nasdaq enhanced the Risk Management product to allow drop copies of execution reports on trades taking place in other market centers to be delivered to a clearing firm’s Nasdaq Risk Management workstation. Nasdaq has decided to provide access to this enhanced Risk Management workstation functionality free of charge to clearing firms for each away market center from which the clearing firm elects to have Nasdaq’s Risk Management system receive execution drop copies for a trial period ending September 30, 2007 to provide an incentive for clearing firms to take advantage of this new Risk Management functionality, and to enhance the exposure of the new Risk Management functionality to the marketplace. At the end of the promotional trial period, clearing firms will have the option to discontinue their use of this new Risk Management functionality or begin paying for it at the normal $375 permonth per-workstation rate. 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 they provide 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. In particular, Nasdaq believes that its proposal to waive this fee for a trial period provides appropriate incentives to encourage clearing firms’ use of Nasdaq’s enhanced Risk Management workstation functionality and drop copy service on an equitable basis. B. Self-Regulatory Organization’s Statement on Burden on Competition mstockstill on PROD1PC66 with NOTICES 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 from Members, Participants, or Others Written comments were neither solicited nor received. 6 15 7 15 U.S.C. 78f. U.S.C. 78f(b)(4). VerDate Aug<31>2005 18:17 Aug 02, 2007 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act 8 and subparagraph (f)(2) of Rule 19b–4 thereunder because it establishes or changes a due, fee, or other charge imposed by Nasdaq on its members.9 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, as amended, 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–2007–057 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–2007–057. 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 8 15 9 17 Jkt 211001 PO 00000 U.S.C. 78s(b)(3)(a)(ii). CFR 240.19b–4(f)(2). Frm 00089 Fmt 4703 Sfmt 4703 the Commission’s Public Reference Section, 100 F Street, NE., Washington, DC 20549–1090, 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 offices of the Exchange. 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–2007–057 and should be submitted on or before August 24,2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E7–15069 Filed 8–2–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56169; File No. SR–NYSE– 2007–69] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Information Memorandum That Reflects the Changes to Disciplinary Proceedings at NYSE Regulation, Inc. as a Result of the Regulatory Consolidation With the National Association of Securities Dealers, Inc. July 30, 2007. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 26, 2007, the New York Stock Exchange LLC (‘‘NYSE’’ 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 the NYSE. The NYSE has designated the proposed rule change as constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule of the self-regulatory organization under section 19(b)(3)(A)(i) of the Act 3 and Rule 19b–4(f)(1) thereunder,4 which renders the proposal 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). 4 17 CFR 240.19b–4(f)(1). 1 15 E:\FR\FM\03AUN1.SGM 03AUN1

Agencies

[Federal Register Volume 72, Number 149 (Friday, August 3, 2007)]
[Notices]
[Pages 43309-43310]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15069]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56153; File No. SR-NASDAQ-2007-057]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Temporarily Waive Risk Management Workstation Fees

July 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 June 6, 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. Pursuant to section 
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 
Nasdaq has designated this proposal as establishing or changing a due, 
fee, or other charge, which renders the proposed rule change effective 
immediately upon filing.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 the 
Substance of the Proposed Rule Change

    Nasdaq proposes to offer free access to its enhanced Risk 
Management workstation functionality to clearing firms that elect to 
use Nasdaq's away market execution drop copy service for a trial period 
extending through third quarter 2007. Nasdaq will implement this rule 
change immediately.
    The text of the proposed rule change is below. Proposed new 
language is in italics.\5\
---------------------------------------------------------------------------

    \5\ Changes are marked to the rule text that appears in the 
electronic Nasdaq Manual found at http://nasdaq.complinet.com.
---------------------------------------------------------------------------

    7015. Access Services.
    The following charges are assessed by Nasdaq for connectivity to 
the Nasdaq Market Center (NMC), the NASD/NASDAQ Trade Reporting 
Facility, and the NASD's OTCBB Service. The fees established under Rule 
7015 for non-Nasdaq members using Nasdaq services for connectivity to 
the NMC, the NASD/NASDAQ Trade Reporting Facility, or the NASD's OTCBB 
Service shall be the fees established for members under this Rule 7015, 
as in effect on the date of Nasdaq's registration as a national 
securities exchange and as amended by SR-NASDAQ-2006-024 and SR-NASDAQ-
2006-025, and as applied to non-members by SR-NASDAQ-2006-026.
    (a)-(d) No Change
    (e) Specialized Services Related to NASD/NASDAQ Trade Reporting 
Facility

------------------------------------------------------------------------
 
------------------------------------------------------------------------
CTCI fee.....................  $575/month.
WebLink ACT or Nasdaq          $375/month (full functionality) or $200/
 Workstation Post Trade..       month (up to an average of twenty
                                transactions per day each month) (For
                                the purposes of this service only, a
                                transaction is defined as an original
                                trade entry, either on trade date or as-
                                of transactions per month.)
                               For a trial period ending September 30,
                                2007, the above fee shall not be imposed
                                on any number of workstations equal to,
                                or less than, the number of away market
                                centers from which a clearing firm
                                elects to have Nasdaq's Risk Management
                                System receive execution drop copies,
ACT Workstation..............  $525/logon/month
------------------------------------------------------------------------

    (f)-(g) No Change.

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 proposing to offer free access to its enhanced Risk 
Management workstation functionality to clearing firms that elect to 
use Nasdaq's away market execution drop copy service for a trial period 
extending through the third quarter of 2007. Nasdaq Risk Management is 
a credit risk management tool that allows clearing firms to view in 
real time the dollars engaged by their correspondents (executing 
brokers) by side and security in U.S. equity transactions. 
Historically, this product was able to capture only

[[Page 43310]]

Nasdaq Market Center trading activity. Recently, however, Nasdaq 
enhanced the Risk Management product to allow drop copies of execution 
reports on trades taking place in other market centers to be delivered 
to a clearing firm's Nasdaq Risk Management workstation.
    Nasdaq has decided to provide access to this enhanced Risk 
Management workstation functionality free of charge to clearing firms 
for each away market center from which the clearing firm elects to have 
Nasdaq's Risk Management system receive execution drop copies for a 
trial period ending September 30, 2007 to provide an incentive for 
clearing firms to take advantage of this new Risk Management 
functionality, and to enhance the exposure of the new Risk Management 
functionality to the marketplace. At the end of the promotional trial 
period, clearing firms will have the option to discontinue their use of 
this new Risk Management functionality or begin paying for it at the 
normal $375 per-month per-workstation rate.
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 they provide 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. In particular, Nasdaq believes that 
its proposal to waive this fee for a trial period provides appropriate 
incentives to encourage clearing firms' use of Nasdaq's enhanced Risk 
Management workstation functionality and drop copy service on an 
equitable basis.
---------------------------------------------------------------------------

    \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 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 rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
thereunder because it establishes or changes a due, fee, or other 
charge imposed by Nasdaq on its members.\9\ 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, as amended, 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-2007-057 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-2007-057. 
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 Section, 100 F Street, 
NE., Washington, DC 20549-1090, 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 offices of the 
Exchange. 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-2007-057 and 
should be submitted on or before August 24, 2007.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
 [FR Doc. E7-15069 Filed 8-2-07; 8:45 am]
BILLING CODE 8010-01-P