Self-Regulatory Organizations; National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc.); Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NASD Rule 7002B To Establish Fees for the Transfer of Transaction Fees Through the NASD/Nasdaq Trade Reporting Facility, 50153-50155 [E7-17166]
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Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56314; File No. SR–NASD–
2007–051]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc. (n/k/a Financial Industry
Regulatory Authority, Inc.); Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
NASD Rule 7002B To Establish Fees
for the Transfer of Transaction Fees
Through the NASD/Nasdaq Trade
Reporting Facility
August 23, 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 20,
2007, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) 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
NASD.3 NASD has designated this
proposal as ‘‘establishing or changing a
due, fee, or other charge’’ under Section
19(b)(3)(A)(ii) of the Act 4 and Rule 19b–
4(f)(2) thereunder,5 which renders the
proposed rule change effective
immediately upon filing. 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
NASD is proposing to amend NASD
Rule 7002B to establish a fee for reports
that are submitted to the NASD/Nasdaq
Trade Reporting Facility (the ‘‘NASD/
Nasdaq TRF’’) to process transaction
fees charged by one member to another
member pursuant to NASD Rule
6130(h). In addition, NASD is proposing
technical, non-substantive amendments
to the NASD Rule 7000 Series to change
all references to the ‘‘Trade Reporting
Facility’’ to the ‘‘NASD/Nasdaq Trade
Reporting Facility.’’
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
brackets.
*
*
*
*
*
7000B. Charges For NASD/NASDAQ
Trade Reporting Facility Services
7001B. Securities Transaction Credit
NASD members that trade securities
listed on the NYSE (‘‘Tape A’’), Amex
(‘‘Tape B’’), or Nasdaq (‘‘Tape C’’) in
over-the-counter transactions reported
to the NASD/Nasdaq Trade Reporting
Facility may receive from the NASD/
Nasdaq Trade Reporting Facility
transaction credits based on the
transactions attributed to them. A
transaction is attributed to a member if
the member is identified as the
executing party in a trade report
submitted to the NASD/Nasdaq Trade
Reporting Facility that the NASD/
50153
Nasdaq Trade Reporting Facility
submits to the Consolidated Tape
Association or the Nasdaq Securities
Information Processor. An NASD
member may earn credits from any of
three pools maintained by the NASD/
Nasdaq Trade Reporting Facility. The
Tape A, Tape B, and Tape C pools
represent 50% of the revenue paid by
the Consolidated Tape Association or
the Nasdaq Securities Information
Processor with respect to the NASD/
Nasdaq Trade Reporting Facility for
each of Tape A, Tape B, and Tape C
transactions after deducting the amount,
if any, that the NASD/Nasdaq Trade
Reporting Facility pays to the
Consolidated Tape Association or the
Nasdaq Securities Information Processor
for capacity usage. An NASD member
may earn credits from the pools
according to the pro rata share of
revenue attributable to over-the-counter
transactions reported to the NASD/
Nasdaq Trade Reporting Facility by the
member in each of Tape A, Tape B, and
Tape C for each calendar quarter.
Credits will be paid on a quarterly basis.
7002B. NASD/Nasdaq Trade Reporting
Facility Reporting Fees
The following charges shall be paid
by participants for use of the NASD/
Nasdaq Trade Reporting Facility. In the
case of trades where the same market
participant is on both sides of a trade
report, applicable fees assessed on a
‘‘per side’’ basis will be assessed once,
rather than twice.
Transaction related charges:
Reporting of transactions in Nasdaq-listed securities not subject to
comparison through the NASD/Nasdaq Trade Reporting Facility.
Reporting of transactions in stocks reported to the Consolidated Tape
Association not subject to comparison through the NASD/Nasdaq
Trade Reporting Facility (‘‘CTA Covered Transactions’’).
Average daily volume of media transaction reports for CTA Covered
Transactions during the month that are submitted or introduced by
such participant to the NASD/Nasdaq Trade Reporting Facility, in
which the participant is identified as the reporting party.
0 to 5,000 .................................................................................................
More than 5,000 .......................................................................................
Reporting of all other transactions not subject to comparison through
the NASD/Nasdaq Trade Reporting Facility.
Clearing report to transfer a transaction fee charged by one member to
another member pursuant to Rule 6130(h).
Comparison ..............................................................................................
rfrederick on PROD1PC67 with NOTICES
Late Report—T+N ....................................................................................
Query ........................................................................................................
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 On July 26, 2007, the Commission approved a
proposed rule change filed by NASD to amend
2 17
VerDate Aug<31>2005
14:38 Aug 29, 2007
Jkt 211001
No charge.
Fee per side for reports of CTA Covered Transactions to which such
participant is a party.
$0.029
$0.029 for a number of reports equal to 5,000 times the number of
trading days in the month.
$0.00 for all remaining reports.
$0.029/side.
$0.03/side.
$0.0144/side per 100 shares (minimum 400 shares; maximum 7,500
shares).
$0.288/side.
$0.50/query.
NASD’s Certificate of Incorporation to reflect its
name change to Financial Industry Regulatory
Authority Inc., or FINRA, in connection with the
consolidation of the member firm regulatory
functions of NASD and NYSE Regulation, Inc. See
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
Securities Exchange Act Release No. 56146 (July 26,
2007) 72 FR 42190 (August 1, 2007).
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
E:\FR\FM\30AUN1.SGM
30AUN1
50154
Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Notices
Transaction related charges:
Corrective Transaction Charge ................................................................
rfrederick on PROD1PC67 with NOTICES
7003B. Aggregation of Activity of
Affiliated Members
(a) For purposes of applying any
provision of the Rule 7000B Series that
reflects a charge assessed, or credit
provided, by the NASD/Nasdaq Trade
Reporting Facility, a member may
request that the NASD/Nasdaq Trade
Reporting Facility aggregate its activity
with the activity of its affiliates. A
member requesting aggregation of
affiliate activity shall be required to
certify to NASD the affiliate status of
entities whose activity it seeks to
aggregate prior to receiving approval for
aggregation, and shall be required to
inform NASD immediately of any event
that causes an entity to cease to be an
affiliate. In addition, NASD reserves the
right to request information to verify the
affiliate status of an entity.
(b) For purposes of applying any
provision of the Rule 7000B Series that
reflects a charge assessed, or credit
provided, by the NASD/Nasdaq Trade
Reporting Facility, references to an
entity (including references to a
‘‘member,’’ a ‘‘participant,’’ or a ‘‘Trade
Reporting Facility Participant’’) shall be
deemed to include the entity and its
affiliates that have been approved for
aggregation.
(c) No Change.
7004B. Late Fees
(a) All charges imposed by the NASD/
Nasdaq Trade Reporting Facility that
are past due 45 days or more will be
subject to a late fee computed by taking
the summation of one and one-half
percent (11⁄2%) of the amount past due
for the first month plus one and one-half
percent (11⁄2%) of the amount past due
for any month thereafter, compounded
by late fees assessed for previous
months.
(b) 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,
NASD 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. NASD has prepared
summaries, set forth in Sections A, B,
VerDate Aug<31>2005
14:38 Aug 29, 2007
Jkt 211001
$0.25/Cancel, Error, Inhibit, Kill, or ‘No’ portion of No/Was transaction,
paid by reporting side; $0.25/Break, Decline transaction, paid by
each party.
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
NASD recently filed a proposed rule
change for immediate effectiveness to
allow NASD members to use the NASD/
Nasdaq TRF to process transaction fees
charged by one member to another
member on trades in NMS stocks, as
defined in Rule 600(b)(47) of Regulation
NMS under the Act, effected otherwise
than on an exchange.6 NASD Rule
6130(h) provides that members may
agree in advance to such transfers
through the submission of a clearing
report. Such report, inclusive of the
transaction fee, will be submitted to the
National Securities Clearing Corporation
for processing. To facilitate the transfer
of the transaction fee, the report
submitted to the NASD/Nasdaq TRF
shall provide, in addition to all other
information required to be submitted by
any other rule, a total per share or
contract price amount, inclusive of the
transaction fee. NASD Rule 6130(h)
relates solely to transaction fees charged
by one NASD member to another NASD
member. Members cannot use the
NASD/Nasdaq TRF to facilitate the
transfer of fees for transactions with a
customer (i.e., clients that are not
brokers or dealers) or a non-member.
NASD is proposing to establish the fee
to be charged by the NASD/Nasdaq TRF
for the use of this service.7 Pursuant to
NASD Rule 7002B, the fee will be $0.03
per side for each clearing report
submitted to the NASD/Nasdaq TRF to
transfer a transaction fee. This fee is in
addition to any other fee applicable to
the transaction.
In addition, NASD is proposing
technical, non-substantive amendments
to the NASD Rule 7000 Series to change
all references to the ‘‘Trade Reporting
Facility’’ to the ‘‘NASD/Nasdaq Trade
Reporting Facility.’’ These changes are
consistent with the NASD Rule 7000C
6 See Securities Exchange Act Release No. 56007
(July 3, 2007), 72 FR 37807 (July 11, 2007) (notice
of filing and immediate effectiveness of SR–NASD–
2007–046). SR–NASD–2007–046 became operative
on July 9, 2007.
7 NASD did not propose any fees for this service
as part of SR–NASD–2007–046.
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
Series (relating to the NASD/NSX Trade
Reporting Facility), 7000D Series
(relating to the NASD/BSE Trade
Reporting Facility), and 7000E Series
(relating to the NASD/NYSE Trade
Reporting Facility).
NASD has filed the proposed rule
change for immediate effectiveness. The
operative date of the proposed rule
change will be August 1, 2007.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A of the Act,8 in general,
and with Section 15A(b)(5) of the Act,9
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 NASD operates
or controls. NASD believes that the fees
are reasonably allocated among
members based on their usage of the
functionality to transfer explicit fees,
and are generally consistent with other
fees charged by the NASD/Nasdaq TRF
for value added services.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD 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 proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 10 and Rule
19b–4(f)(2) 11 thereunder, because it
involves a member due, fee, or other
charge. At any time within sixty (60)
days of the filing of such proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
8 15
U.S.C. 78o–3.
U.S.C. 78o–3(b)(5).
10 15 U.S.C. 78s(b)(3)(A)(ii).
11 17 CFR 240.19b–4(f)(2).
9 15
E:\FR\FM\30AUN1.SGM
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Federal Register / Vol. 72, No. 168 / Thursday, August 30, 2007 / Notices
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E7–17166 Filed 8–29–07; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
National Small Business Development
Center Advisory Board Public Meeting
Electronic Comments
Pursuant to the Federal Advisory
Committee Act, Appendix 2 of Title 5,
United States Code, Public Law 92–463,
notice is hereby given that the U.S.
Small Business Administration (SBA),
National Small Business Development
Center (SBDC) Advisory Board, will be
hosting a public federal meeting on
Monday, September 17, 2007, from 3
Paper Comments
p.m. to 4 p.m. The meeting will be held
at the Hyatt Regency Colorado
• Send paper comments in triplicate
Convention Center, 650 15th Street,
to Nancy M. Morris, Secretary,
Denver, CO 80202. The purpose of the
Securities and Exchange Commission,
meeting is to discuss advisory board
100 F Street, NE., Washington, DC
matters that may be presented by
20549–1090.
members and the staff of the U.S. Small
All submissions should refer to File
Business Administration (SBA).
Number SR–NASD–2007–051. This file
Anyone wishing to attend the
number should be included on the
National Small Business Development
subject line if e-mail is used. To help the
Center Advisory Board meeting must
Commission process and review your
contact Alanna Falcone, Program
comments more efficiently, please use
Analyst, U.S. Small Business
only one method. The Commission will
Administration, Office of Small
post all comments on the Commission’s
Business Development Centers, 409
Internet Web site (https://www.sec.gov/
Third Street, SW., Washington, DC
rules/sro.shtml). Copies of the
20416, telephone (202) 619–1612 or fax
submission, all subsequent
(202) 481–0134.
amendments, all written statements
with respect to the proposed rule
Matthew Teague,
change that are filed with the
Committee Management Officer.
Commission, and all written
[FR Doc. 07–4261 Filed 8–29–07; 8:45 am]
communications relating to the
BILLING CODE 8025–01–M
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
DEPARTMENT OF STATE
public in accordance with the
[Public Notice 5922]
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
Culturally Significant Objects Imported
the Commission’s Public Reference
for Exhibition Determinations: ‘‘Art &
Room, 100 F Street, NE., Washington,
Emancipation in Jamaica: Isaac
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. Mendes Belisario and His Worlds’’
Copies of such filing also will be
SUMMARY: Notice is hereby given of the
available for inspection and copying at
following determinations: Pursuant to
the principal office of FINRA. All
the authority vested in me by the Act of
comments received will be posted
October 19, 1965 (79 Stat. 985; 22 U.S.C.
without change; the Commission does
2459), Executive Order 12047 of March
not edit personal identifying
27, 1978, the Foreign Affairs Reform and
information from submissions. You
Restructuring Act of 1998 (112 Stat.
should submit only information that
2681, et seq.; 22 U.S.C. 6501 note, et
you wish to make available publicly. All seq.), Delegation of Authority No. 234 of
submissions should refer to File
October 1, 1999, Delegation of Authority
Number SR–NASD–2007–051 and
No. 236 of October 19, 1999, as
should be submitted on or before
September 20, 2007.
12 17 CFR 200.30–3(a)(12).
rfrederick on PROD1PC67 with NOTICES
• 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–NASD–2007–051 on the
subject line.
VerDate Aug<31>2005
14:38 Aug 29, 2007
Jkt 211001
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
50155
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
included in the exhibition ‘‘Art &
Emancipation in Jamaica: Isaac Mendes
Belisario and His Worlds,’’ imported
from abroad for temporary exhibition
within the United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners or custodians. I also
determine that the exhibition or display
of the exhibit objects at the Yale Center
for British Art, New Haven,
Connecticut, from on or about
September 27, 2007, until on or about
December 30, 2007, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. Public Notice of these
Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Paul W.
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–453–8052). The
address is U.S. Department of State, SA–
44, 301 4th Street, SW., Room 700,
Washington, DC 20547–0001.
Dated: August 27, 2007.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. E7–17312 Filed 8–29–07; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Noise Exposure Map Notice;
Alexandria International Airport,
Alexandria, LA
Federal Aviation
Administration, DOT.
ACTION: Notice.
AGENCY:
SUMMARY: The Federal Aviation
Administration (FAA) announces its
findings on the noise compatibility
program submitted by England
Economic and Industrial Developmental
District under the provisions of 49
U.S.C. (the Aviation Safety and Noise
Abatement Act, hereinafter referred to
as ‘‘the Act’’) and 14 CFR part 150.
These findings are made in recognition
of the description of Federal and
nonfederal responsibilities in Senate
Report No. 96–52 (1980). On January 26,
2006, the FAA determined that the
noise exposure maps submitted by
England Economic and Industrial
Development District under part 150
E:\FR\FM\30AUN1.SGM
30AUN1
]]>Agencies
[Federal Register Volume 72, Number 168 (Thursday, August 30, 2007)]
[Notices]
[Pages 50153-50155]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17166]
[[Page 50153]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56314; File No. SR-NASD-2007-051]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc.);
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend NASD Rule 7002B To Establish Fees for the Transfer of Transaction
Fees Through the NASD/Nasdaq Trade Reporting Facility
August 23, 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 20, 2007, the National Association of Securities Dealers, Inc.
(``NASD'') 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 NASD.\3\
NASD has designated this proposal as ``establishing or changing a due,
fee, or other charge'' under Section 19(b)(3)(A)(ii) of the Act \4\ and
Rule 19b-4(f)(2) thereunder,\5\ which renders the proposed rule change
effective immediately upon filing. 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\ On July 26, 2007, the Commission approved a proposed rule
change filed by NASD to amend NASD's Certificate of Incorporation to
reflect its name change to Financial Industry Regulatory Authority
Inc., or FINRA, in connection with the consolidation of the member
firm regulatory functions of NASD and NYSE Regulation, Inc. See
Securities Exchange Act Release No. 56146 (July 26, 2007) 72 FR
42190 (August 1, 2007).
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASD is proposing to amend NASD Rule 7002B to establish a fee for
reports that are submitted to the NASD/Nasdaq Trade Reporting Facility
(the ``NASD/Nasdaq TRF'') to process transaction fees charged by one
member to another member pursuant to NASD Rule 6130(h). In addition,
NASD is proposing technical, non-substantive amendments to the NASD
Rule 7000 Series to change all references to the ``Trade Reporting
Facility'' to the ``NASD/Nasdaq Trade Reporting Facility.''
Below is the text of the proposed rule change. Proposed new
language is in italics; proposed deletions are in brackets.
* * * * *
7000B. Charges For NASD/NASDAQ Trade Reporting Facility Services
7001B. Securities Transaction Credit
NASD members that trade securities listed on the NYSE (``Tape A''),
Amex (``Tape B''), or Nasdaq (``Tape C'') in over-the-counter
transactions reported to the NASD/Nasdaq Trade Reporting Facility may
receive from the NASD/Nasdaq Trade Reporting Facility transaction
credits based on the transactions attributed to them. A transaction is
attributed to a member if the member is identified as the executing
party in a trade report submitted to the NASD/Nasdaq Trade Reporting
Facility that the NASD/Nasdaq Trade Reporting Facility submits to the
Consolidated Tape Association or the Nasdaq Securities Information
Processor. An NASD member may earn credits from any of three pools
maintained by the NASD/Nasdaq Trade Reporting Facility. The Tape A,
Tape B, and Tape C pools represent 50% of the revenue paid by the
Consolidated Tape Association or the Nasdaq Securities Information
Processor with respect to the NASD/Nasdaq Trade Reporting Facility for
each of Tape A, Tape B, and Tape C transactions after deducting the
amount, if any, that the NASD/Nasdaq Trade Reporting Facility pays to
the Consolidated Tape Association or the Nasdaq Securities Information
Processor for capacity usage. An NASD member may earn credits from the
pools according to the pro rata share of revenue attributable to over-
the-counter transactions reported to the NASD/Nasdaq Trade Reporting
Facility by the member in each of Tape A, Tape B, and Tape C for each
calendar quarter. Credits will be paid on a quarterly basis.
7002B. NASD/Nasdaq Trade Reporting Facility Reporting Fees
The following charges shall be paid by participants for use of the
NASD/Nasdaq Trade Reporting Facility. In the case of trades where the
same market participant is on both sides of a trade report, applicable
fees assessed on a ``per side'' basis will be assessed once, rather
than twice.
------------------------------------------------------------------------
Transaction related charges:
------------------------------------------------------------------------
Reporting of transactions in Nasdaq- No charge.
listed securities not subject to
comparison through the NASD/Nasdaq
Trade Reporting Facility.
Reporting of transactions in stocks
reported to the Consolidated Tape
Association not subject to comparison
through the NASD/Nasdaq Trade
Reporting Facility (``CTA Covered
Transactions'').
Average daily volume of media Fee per side for reports of CTA
transaction reports for CTA Covered Covered Transactions to which
Transactions during the month that are such participant is a party.
submitted or introduced by such
participant to the NASD/Nasdaq Trade
Reporting Facility, in which the
participant is identified as the
reporting party.
0 to 5,000............................. $0.029
More than 5,000........................ $0.029 for a number of reports
equal to 5,000 times the
number of trading days in the
month.
$0.00 for all remaining
reports.
Reporting of all other transactions not $0.029/side.
subject to comparison through the NASD/
Nasdaq Trade Reporting Facility.
Clearing report to transfer a $0.03/side.
transaction fee charged by one member
to another member pursuant to Rule
6130(h).
Comparison............................. $0.0144/side per 100 shares
(minimum 400 shares; maximum
7,500 shares).
Late Report--T+N....................... $0.288/side.
Query.................................. $0.50/query.
[[Page 50154]]
Corrective Transaction Charge.......... $0.25/Cancel, Error, Inhibit,
Kill, or `No' portion of No/
Was transaction, paid by
reporting side; $0.25/Break,
Decline transaction, paid by
each party.
------------------------------------------------------------------------
7003B. Aggregation of Activity of Affiliated Members
(a) For purposes of applying any provision of the Rule 7000B Series
that reflects a charge assessed, or credit provided, by the NASD/Nasdaq
Trade Reporting Facility, a member may request that the NASD/Nasdaq
Trade Reporting Facility aggregate its activity with the activity of
its affiliates. A member requesting aggregation of affiliate activity
shall be required to certify to NASD the affiliate status of entities
whose activity it seeks to aggregate prior to receiving approval for
aggregation, and shall be required to inform NASD immediately of any
event that causes an entity to cease to be an affiliate. In addition,
NASD reserves the right to request information to verify the affiliate
status of an entity.
(b) For purposes of applying any provision of the Rule 7000B Series
that reflects a charge assessed, or credit provided, by the NASD/Nasdaq
Trade Reporting Facility, references to an entity (including references
to a ``member,'' a ``participant,'' or a ``Trade Reporting Facility
Participant'') shall be deemed to include the entity and its affiliates
that have been approved for aggregation.
(c) No Change.
7004B. Late Fees
(a) All charges imposed by the NASD/Nasdaq Trade Reporting Facility
that are past due 45 days or more will be subject to a late fee
computed by taking the summation of one and one-half percent (1\1/2\%)
of the amount past due for the first month plus one and one-half
percent (1\1/2\%) of the amount past due for any month thereafter,
compounded by late fees assessed for previous months.
(b) 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, NASD 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. NASD 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
NASD recently filed a proposed rule change for immediate
effectiveness to allow NASD members to use the NASD/Nasdaq TRF to
process transaction fees charged by one member to another member on
trades in NMS stocks, as defined in Rule 600(b)(47) of Regulation NMS
under the Act, effected otherwise than on an exchange.\6\ NASD Rule
6130(h) provides that members may agree in advance to such transfers
through the submission of a clearing report. Such report, inclusive of
the transaction fee, will be submitted to the National Securities
Clearing Corporation for processing. To facilitate the transfer of the
transaction fee, the report submitted to the NASD/Nasdaq TRF shall
provide, in addition to all other information required to be submitted
by any other rule, a total per share or contract price amount,
inclusive of the transaction fee. NASD Rule 6130(h) relates solely to
transaction fees charged by one NASD member to another NASD member.
Members cannot use the NASD/Nasdaq TRF to facilitate the transfer of
fees for transactions with a customer (i.e., clients that are not
brokers or dealers) or a non-member.
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\6\ See Securities Exchange Act Release No. 56007 (July 3,
2007), 72 FR 37807 (July 11, 2007) (notice of filing and immediate
effectiveness of SR-NASD-2007-046). SR-NASD-2007-046 became
operative on July 9, 2007.
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NASD is proposing to establish the fee to be charged by the NASD/
Nasdaq TRF for the use of this service.\7\ Pursuant to NASD Rule 7002B,
the fee will be $0.03 per side for each clearing report submitted to
the NASD/Nasdaq TRF to transfer a transaction fee. This fee is in
addition to any other fee applicable to the transaction.
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\7\ NASD did not propose any fees for this service as part of
SR-NASD-2007-046.
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In addition, NASD is proposing technical, non-substantive
amendments to the NASD Rule 7000 Series to change all references to the
``Trade Reporting Facility'' to the ``NASD/Nasdaq Trade Reporting
Facility.'' These changes are consistent with the NASD Rule 7000C
Series (relating to the NASD/NSX Trade Reporting Facility), 7000D
Series (relating to the NASD/BSE Trade Reporting Facility), and 7000E
Series (relating to the NASD/NYSE Trade Reporting Facility).
NASD has filed the proposed rule change for immediate
effectiveness. The operative date of the proposed rule change will be
August 1, 2007.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A of the Act,\8\ in general, and with Section
15A(b)(5) of the Act,\9\ 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 NASD operates or controls. NASD believes that the fees are
reasonably allocated among members based on their usage of the
functionality to transfer explicit fees, and are generally consistent
with other fees charged by the NASD/Nasdaq TRF for value added
services.
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\8\ 15 U.S.C. 78o-3.
\9\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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 proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \10\ and Rule 19b-4(f)(2) \11\ thereunder,
because it involves a member due, fee, or other charge. At any time
within sixty (60) days of the filing of such proposed rule change, the
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is
[[Page 50155]]
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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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2007-051 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-NASD-2007-051. 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, 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 FINRA. 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-NASD-2007-051 and should be
submitted on or before September 20, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-17166 Filed 8-29-07; 8:45 am]
BILLING CODE 8010-01-P
