Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Fees for Members Using the Nasdaq Market Center, 8096-8098 [E8-2523]

Download as PDF 8096 Federal Register / Vol. 73, No. 29 / Tuesday, February 12, 2008 / Notices members deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction. This approval order is based on the Exchange’s representations. The Commission notes that, if the Shares should be delisted by the listing exchange, the Exchange would no longer have authority to trade the Shares pursuant to this order. The Commission also believes that the Exchange’s proposal to amend Nasdaq Rule 4420(m) is consistent with the Act. The Commission notes that the proposed modifications to Nasdaq Rule 4420(m) are substantially identical to a proposal from NYSE Arca, Inc. (‘‘NYSE Arca’’) that the Commission approved and found consistent with the Act,23 and is approving this aspect of Nasdaq’s proposal on the same basis. The Commission finds good cause for approving this proposal before the thirtieth day after the publication of notice thereof in the Federal Register. As noted above, the Commission previously found that the listing and trading of the Shares on Amex is consistent with the Act. In addition, the Commission notes that the proposed amendments to Nasdaq Rule 4420(m) are substantially identical to a proposed rule change submitted by NYSE Arca, which was previously approved by the Commission after an opportunity for notice and comment. The Commission presently is not aware of any regulatory issue that should cause it to revisit these findings or would preclude the trading of the Shares on the Exchange pursuant to UTP. Therefore, accelerating approval of this proposal should benefit investors by creating, without undue delay, additional competition in the market for the Shares. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,24 that the proposed rule change (SR–NASDAQ– 2008–008) be, and it hereby is, approved on an accelerated basis. mstockstill on PROD1PC66 with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.25 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–2468 Filed 2–11–08; 8:45 am] BILLING CODE 8011–01–P 23 See Securities Exchange Act Release No. 57149 (January 15, 2008) 73 FR 3790 (January 22, 2008) (SR–NYSEARCA–2007–122). 24 15 U.S.C. 78s(b)(2). 25 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:46 Feb 11, 2008 Jkt 214001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57274; File No. SRNASDAQ–2008–009] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Fees for Members Using the Nasdaq Market Center February 5, 2008. 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 February 1, 2008, 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 prepared substantially by Nasdaq. Nasdaq has designated this proposal as one establishing or changing a member due, fee, or other charge imposed by Nasdaq under section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. 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 Substance of the Proposed Rule Change Nasdaq proposes to modify pricing for Nasdaq members using the Nasdaq Market Center. Nasdaq implemented this proposed rule change on February 1, 2008. The text of the proposed rule change is available at https:// www.nasdaq.complinet.com, the principal offices of the Exchange, and the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, 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. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq is introducing changes to its order execution pricing schedule to lower fees for certain members that execute high volumes of transactions through the Nasdaq Market Center but that do not qualify for current favorable pricing because they provide lower volumes of liquidity. Specifically, any member that accesses an average of 55 million or more shares of liquidity through the Nasdaq Market Center in a month would pay a reduced fee for accessing that liquidity unless the member already qualifies for a more favorable pricing level. For shares of New York Stock Exchange (‘‘NYSE’’) listed companies, the fee will be $0.00285 per share executed in the Nasdaq Market Center,5 and for securities listed on Nasdaq and other exchanges, the reduced fee will be $0.00265 per share executed in the Nasdaq Market Center.6 Members qualifying for the reduced execution charge would continue to pay fees for routing to other exchanges at their current levels, which are identical to the current fees for accessing liquidity. Second, Nasdaq is simplifying its pricing schedule by eliminating a reduced fee for orders that are designated for routing directly to the American Stock Exchange (‘‘Amex’’) without attempting to execute in the Nasdaq Market Center prior to routing. As a result, for securities listed on exchanges other than NYSE, the fee is now $0.0035 per share for all orders 5 The fee represents a reduction from the current execution fees of $0.0029 per share paid by members with an average daily volume of (i) more than 20 million shares of liquidity provided and (ii) more than 35 million shares of liquidity accessed and/or routed; and $0.003 per share executed for members with lower volumes. Members with an average daily volume of (i) more than 35 million shares of liquidity provided and (ii) more than 55 million shares of liquidity accessed and/or routed; or with an average daily volume of (i) more than 25 million shares of liquidity provided, and (ii) more than 65 million shares of liquidity accessed and/or routed, will continue to pay a lower rate of $0.0028 per share executed. 6 The fee represents a reduction from the current execution fees of $0.0028 per share paid by members with an average daily volume of (i) more than 20 million shares of liquidity provided and (ii) more than 35 million shares of liquidity accessed and/or routed; and $0.003 per share executed for members with lower volumes. Members with an average daily volume of (i) more than 35 million shares of liquidity provided and (ii) more than 55 million shares of liquidity accessed and/or routed; or with an average daily volume of (i) more than 25 million shares of liquidity provided, and (ii) more than 65 million shares of liquidity accessed and/or routed, will continue to pay a lower rate of $0.0026 per share executed. E:\FR\FM\12FEN1.SGM 12FEN1 Federal Register / Vol. 73, No. 29 / Tuesday, February 12, 2008 / Notices designated for specialized routing, including Directed Intermarket Sweep Orders, orders that attempt to execute solely against displayed interest in Nasdaq, and orders that do not attempt to execute in Nasdaq at all. Third, Nasdaq is reducing one of the volume levels required to qualify for a reduced fee for routing orders to NYSE. Members with an average daily volume of more than 50 million shares of liquidity (currently 60 million shares) routed to NYSE without attempting to execute in Nasdaq (other than Directed Intermarket Sweep Orders) will qualify for a fee of $0.0009 for orders that do not attempt to execute in Nasdaq (compared with the fee of $0.001 for members with lower volumes).7 Finally, Nasdaq is modifying its fees for routing odd lot transactions to NYSE Arca. Currently, these fees apply only to orders that are entered in Nasdaq as odd lots and then executed at NYSE Arca. The modified fees will apply to any order executed at NYSE Arca as an odd lot, regardless of how it is entered in Nasdaq. For orders that attempt to execute in Nasdaq prior to routing, the fee will be $0.004 per share executed for Nasdaq-listed securities and $0.03 for other securities; for orders that do not attempt to execute in Nasdaq, the fee will be $0.005 per share executed for Nasdaq-listed securities and $0.04 for other securities. The change is designed to allow Nasdaq to recoup charges that NYSE Arca imposes on odd lots; the higher fee for orders that do not check Nasdaq before routing is designed to further discourage the entry of odd lot orders that have no opportunity for executing prior to routing. mstockstill on PROD1PC66 with NOTICES 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of section 6 of the Act,8 in general, and with section 6(b)(4) 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 Nasdaq operates or controls. The changes will result in a reduction in execution fees for members that execute high volumes of securities in Nasdaq but without also providing high volumes of liquidity, and will expand the availability of reduced routing rates for members using Nasdaq to route to the NYSE. The changes will also 7 Members also qualify for the reduced fee if they have an average daily volume of more than 35 million shares of liquidity provided. 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 17:46 Feb 11, 2008 Jkt 214001 rationalize fees for routing orders in securities listed on exchanges other than NYSE by eliminating a discount for certain orders routed to Amex. Finally, the proposed rule change will ensure that Nasdaq fully recovers costs incurred when routing odd lots to NYSE Arca and will provide financial disincentives for members to enter orders that are likely to result in the routing of odd lots. The impact of the changes upon the net fees paid by a particular market participant will depend upon a number of variables, including the types of securities that it trades through Nasdaq, its monthly volume, the order types it uses, and the prices of its quotes and orders, but on balance the change should result in a fee decrease or unchanged fees for most members. Nasdaq notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. Accordingly, to the extent that certain routing fees are increasing, Nasdaq believes that these fees remain competitive with those charged by other venues and therefore continue to be reasonable and equitably allocated to those members that opt to direct orders to Nasdaq rather than competing venues. 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 proposed rule change has been designated as a fee change pursuant to section 19(b)(3)(A)(ii) of the Act 10 and Rule 19b–4(f)(2) 11 thereunder, because it establishes or changes a due, fee, or other charge imposed on members by Nasdaq. Accordingly, the proposal is effective upon filing with the Commission. 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 10 15 11 17 PO 00000 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). Frm 00068 Fmt 4703 Sfmt 4703 8097 Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2008–009 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2008–009. 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 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 publicly available. All submissions should refer to File Number SR–NASDAQ–2008–009 and should be submitted on or before March 4, 2008. E:\FR\FM\12FEN1.SGM 12FEN1 8098 Federal Register / Vol. 73, No. 29 / Tuesday, February 12, 2008 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–2523 Filed 2–11–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57272; File No. SR–NYSE– 2007–101] Self-Regulatory Organizations; New York Stock Exchange, LLC; Order Granting Approval of Proposed Rule Change Relating to Amendments to NYSE Rule 104.21 (‘‘Specialist Organizations—Additional Capital Requirements’’) February 5, 2008. I. Introduction On November 2, 2007, the New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or the ‘‘Commission’’), pursuant to section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 2 and Rule 19b–4 thereunder,3 a proposal to amend its Rule 104.21 regarding additional capital requirements for specialist organizations. The proposed rule change was published for comment in the Federal Register on December 28, 2007.4 The Commission received no comments regarding the proposal. This order approves the proposed rule changes. II. Description of the Proposal mstockstill on PROD1PC66 with NOTICES The proposed rule change would reduce the total base capital requirement that must be maintained as net liquid assets for all specialists from $1 billion to $250 million. NYSE believes this amount will adequately protect specialist organizations during periods of market stress. Further, each of the specialist organizations have sources of funding that can provide necessary liquidity during a period of market stress. It is no longer necessary for specialist organizations to maintain the currently required levels of liquid capital, as specialist positions and the likelihood of losses have been reduced dramatically due to changes in the structure of the market. 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78(a) et seq. 3 17 CFR 240.19b–4. 4 See Securities Exchange Act Release No. 57000 (Dec. 20, 2007), 72 FR 73947. 1 15 VerDate Aug<31>2005 17:46 Feb 11, 2008 Jkt 214001 III. Discussion After careful review and based on the Exchange’s representations, the Commission finds that the proposed rule changes are consistent with the Act and the rules and regulations applicable to a national securities exchange.5 In particular, the Commission finds that the proposed rule changes are consistent with section 6(b)(5) 6 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission believes it is consistent with the Act for the Exchange to amend NYSE Rule 104.21 as proposed, because the level of participation by specialist firms in trading on the Exchange has declined with the proliferation of electronic trading and the significant change in the Exchange’s trading system introduced by the Hybrid Market.7 The NYSE has noted that the increased efficiency with which others can access the Exchange’s market has increased liquidity and decreased the market’s reliance on the specialist to provide the contra side in a continuous auction. While the NYSE considers specialist participation to still be an important feature of its Hybrid Market, it has documented a lower participation by specialist organizations. This decreased participation means that specialists are assuming less risk. The Commission notes that FINRA, on behalf of NYSE, will continue to assess the specialists’ net liquid asset requirements in relation to the Hybrid Market and monitor their net liquid assets on a daily basis. NYSE and FINRA require notification for all 5 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(5). 7 See Release No. 34–53539 (March 22, 2006); 71 FR 16353 (March 31, 2006) File No. SR–NYSE– 2004–05) (approving amendments to NYSE Rules (approving the proposed rule change to establish the NYSE Hybrid Market). The rule change created a ‘‘Hybrid Market’’ by, among other things, increasing the availability of automatic executions in its existing automatic execution facility, NYSE Direct+, and providing a means for participation in the expanded automated market by its floor members. The change altered the way NYSE’s market operates by allowing more orders to be executed directly in Direct+, which in essence moves NYSE from a floor-based auction market with limited automation order interaction to a more automated market with limited floor-based auction market availability. PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 withdrawals of capital, and approval for any withdrawal being made on less than six months advance notice to the Exchange. IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,8 that the proposed rule change (SR–NYSE–2007– 101), as amended, be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–2470 Filed 2–11–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57270; File No. SR–OCC– 2007–20] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of a Proposed Rule Change Relating to the System for Theoretical Analysis and Numerical Simulations February 5, 2008. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on December 14, 2007, The Options Clearing Corporation (‘‘OCC’’) 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 prepared primarily by OCC. 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 Substance of the Proposed Rule Change The proposed rule change would permit the incorporation of certain forms of securities deposited as margin collateral into OCC’s System for Theoretical Analysis and Numerical Simulations (‘‘STANS’’) risk management methodology. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, OCC included statements concerning the purpose of and basis for the 8 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 9 17 E:\FR\FM\12FEN1.SGM 12FEN1

Agencies

[Federal Register Volume 73, Number 29 (Tuesday, February 12, 2008)]
[Notices]
[Pages 8096-8098]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2523]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57274; File No. SR-NASDAQ-2008-009]


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

February 5, 2008.
    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 February 1, 2008, 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 prepared substantially by Nasdaq. Nasdaq has designated 
this proposal as one establishing or changing a member due, fee, or 
other charge imposed by Nasdaq under section 19(b)(3)(A)(ii) of the Act 
\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. 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\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to modify pricing for Nasdaq members using the 
Nasdaq Market Center. Nasdaq implemented this proposed rule change on 
February 1, 2008. The text of the proposed rule change is available at 
https://www.nasdaq.complinet.com, the principal offices of the Exchange, 
and the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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 introducing changes to its order execution pricing 
schedule to lower fees for certain members that execute high volumes of 
transactions through the Nasdaq Market Center but that do not qualify 
for current favorable pricing because they provide lower volumes of 
liquidity. Specifically, any member that accesses an average of 55 
million or more shares of liquidity through the Nasdaq Market Center in 
a month would pay a reduced fee for accessing that liquidity unless the 
member already qualifies for a more favorable pricing level. For shares 
of New York Stock Exchange (``NYSE'') listed companies, the fee will be 
$0.00285 per share executed in the Nasdaq Market Center,\5\ and for 
securities listed on Nasdaq and other exchanges, the reduced fee will 
be $0.00265 per share executed in the Nasdaq Market Center.\6\ Members 
qualifying for the reduced execution charge would continue to pay fees 
for routing to other exchanges at their current levels, which are 
identical to the current fees for accessing liquidity.
---------------------------------------------------------------------------

    \5\ The fee represents a reduction from the current execution 
fees of $0.0029 per share paid by members with an average daily 
volume of (i) more than 20 million shares of liquidity provided and 
(ii) more than 35 million shares of liquidity accessed and/or 
routed; and $0.003 per share executed for members with lower 
volumes. Members with an average daily volume of (i) more than 35 
million shares of liquidity provided and (ii) more than 55 million 
shares of liquidity accessed and/or routed; or with an average daily 
volume of (i) more than 25 million shares of liquidity provided, and 
(ii) more than 65 million shares of liquidity accessed and/or 
routed, will continue to pay a lower rate of $0.0028 per share 
executed.
    \6\ The fee represents a reduction from the current execution 
fees of $0.0028 per share paid by members with an average daily 
volume of (i) more than 20 million shares of liquidity provided and 
(ii) more than 35 million shares of liquidity accessed and/or 
routed; and $0.003 per share executed for members with lower 
volumes. Members with an average daily volume of (i) more than 35 
million shares of liquidity provided and (ii) more than 55 million 
shares of liquidity accessed and/or routed; or with an average daily 
volume of (i) more than 25 million shares of liquidity provided, and 
(ii) more than 65 million shares of liquidity accessed and/or 
routed, will continue to pay a lower rate of $0.0026 per share 
executed.
---------------------------------------------------------------------------

    Second, Nasdaq is simplifying its pricing schedule by eliminating a 
reduced fee for orders that are designated for routing directly to the 
American Stock Exchange (``Amex'') without attempting to execute in the 
Nasdaq Market Center prior to routing. As a result, for securities 
listed on exchanges other than NYSE, the fee is now $0.0035 per share 
for all orders

[[Page 8097]]

designated for specialized routing, including Directed Intermarket 
Sweep Orders, orders that attempt to execute solely against displayed 
interest in Nasdaq, and orders that do not attempt to execute in Nasdaq 
at all.
    Third, Nasdaq is reducing one of the volume levels required to 
qualify for a reduced fee for routing orders to NYSE. Members with an 
average daily volume of more than 50 million shares of liquidity 
(currently 60 million shares) routed to NYSE without attempting to 
execute in Nasdaq (other than Directed Intermarket Sweep Orders) will 
qualify for a fee of $0.0009 for orders that do not attempt to execute 
in Nasdaq (compared with the fee of $0.001 for members with lower 
volumes).\7\
---------------------------------------------------------------------------

    \7\ Members also qualify for the reduced fee if they have an 
average daily volume of more than 35 million shares of liquidity 
provided.
---------------------------------------------------------------------------

    Finally, Nasdaq is modifying its fees for routing odd lot 
transactions to NYSE Arca. Currently, these fees apply only to orders 
that are entered in Nasdaq as odd lots and then executed at NYSE Arca. 
The modified fees will apply to any order executed at NYSE Arca as an 
odd lot, regardless of how it is entered in Nasdaq. For orders that 
attempt to execute in Nasdaq prior to routing, the fee will be $0.004 
per share executed for Nasdaq-listed securities and $0.03 for other 
securities; for orders that do not attempt to execute in Nasdaq, the 
fee will be $0.005 per share executed for Nasdaq-listed securities and 
$0.04 for other securities. The change is designed to allow Nasdaq to 
recoup charges that NYSE Arca imposes on odd lots; the higher fee for 
orders that do not check Nasdaq before routing is designed to further 
discourage the entry of odd lot orders that have no opportunity for 
executing prior to routing.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 6 of the Act,\8\ in general, and with section 
6(b)(4) 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 Nasdaq operates or controls. The changes will result in a 
reduction in execution fees for members that execute high volumes of 
securities in Nasdaq but without also providing high volumes of 
liquidity, and will expand the availability of reduced routing rates 
for members using Nasdaq to route to the NYSE. The changes will also 
rationalize fees for routing orders in securities listed on exchanges 
other than NYSE by eliminating a discount for certain orders routed to 
Amex. Finally, the proposed rule change will ensure that Nasdaq fully 
recovers costs incurred when routing odd lots to NYSE Arca and will 
provide financial disincentives for members to enter orders that are 
likely to result in the routing of odd lots. The impact of the changes 
upon the net fees paid by a particular market participant will depend 
upon a number of variables, including the types of securities that it 
trades through Nasdaq, its monthly volume, the order types it uses, and 
the prices of its quotes and orders, but on balance the change should 
result in a fee decrease or unchanged fees for most members. Nasdaq 
notes that it operates in a highly competitive market in which market 
participants can readily direct order flow to competing venues if they 
deem fee levels at a particular venue to be excessive. Accordingly, to 
the extent that certain routing fees are increasing, Nasdaq believes 
that these fees remain competitive with those charged by other venues 
and therefore continue to be reasonable and equitably allocated to 
those members that opt to direct orders to Nasdaq rather than competing 
venues.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 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 proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \10\ and Rule 
19b-4(f)(2) \11\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed on members by Nasdaq. Accordingly, the 
proposal is effective upon filing with the Commission. 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2008-009 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2008-009. 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 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 publicly available. All 
submissions should refer to File Number SR-NASDAQ-2008-009 and should 
be submitted on or before March 4, 2008.


[[Page 8098]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-2523 Filed 2-11-08; 8:45 am]
BILLING CODE 8011-01-P
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