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]

Download as PDF 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 30AUN1 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 (http://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 (http://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]]

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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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \7\ NASD did not propose any fees for this service as part of 
SR-NASD-2007-046.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3.
    \9\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

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 (http://
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 (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 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