Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto To Remove From the Nasdaq Rules Fee Provisions Relating to Nasdaq's Mutual Fund Quotation Service, 40410-40411 [E8-15818]
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Federal Register / Vol. 73, No. 135 / Monday, July 14, 2008 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58102; File No. SR–
NASDAQ–2008–019]
1. Purpose
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of a Proposed Rule Change and
Amendment No. 1 Thereto To Remove
From the Nasdaq Rules Fee Provisions
Relating to Nasdaq’s Mutual Fund
Quotation Service
July 3, 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 March 12,
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. On July 3, 2008, Nasdaq filed
Amendment No. 1 to the proposed rule
change. The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq is proposing to remove from
the Nasdaq rules fee provisions relating
to Nasdaq’s Mutual Fund Quotation
Service (‘‘MFQS’’). Nasdaq’s rule book
contains rules pertaining to ‘‘facilities’’
of the exchange, and MFQS is not a
‘‘facility’’ within the meaning of the Act.
The text of the proposed rule change is
available at https://www.complinet.com/
nasdaq, the principal offices of Nasdaq,
and the Commission’s Public Reference
Room.
pwalker on PROD1PC71 with NOTICES
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
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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17:08 Jul 11, 2008
Jkt 214001
Developed by the National
Association of Securities Dealers
(‘‘NASD’’) in the 1980s, MFQS receives
daily price-related information from
participating money market funds,
mutual funds and unit investment trusts
(‘‘UITs’’). Nasdaq disseminates the
MFQS-collected information (as well as
certain related publicly-available
information) to the public on a daily
basis through its Mutual Funds
Dissemination Service (‘‘MFDS’’).
Neither MFQS nor MFDS includes
either ‘‘last sale’’ reports or other ‘‘real
time’’ information. Both members and
non-members of Nasdaq are able to
participate in MFQS and to receive the
information.
Services similar to MFQS/MFDS can
be provided by other entities, including
entities that are not national securities
exchanges. The ease with which money
market, mutual fund and UIT
information can be collected and
transmitted over the Internet makes the
environment in which MFQS and MFDS
operate potentially highly competitive.
Nasdaq included MFQS in its rule
book when Nasdaq was registered as a
national securities exchange in 2006.3
Current Nasdaq Rules 7033 (a) through
(d) contain charges paid by funds and
UITs for participating in MFQS. Rules
7033(e) and 7019(b) contain charges
paid by subscribers for the MFQS
information provided to them via the
MFDS.4
Nasdaq believes that by operating
MFQS and MFDS, it facilitates the
distribution of information regarding
non-exchange activity. As such, Nasdaq
does not believe that either MFQS or
MFDS is a facility of a national
securities exchange within the meaning
of the Act or that the applicable charges
are rules that need to be filed with the
3 As Nasdaq prepared to begin operating as an
independent national securities exchange in 2006,
it replicated sections of the NASD rule manual and
proposed that they be included in the new Nasdaq
rule manual in the same form. See Securities
Exchange Act Release No. 53128 (January 13, 2006),
71 FR 3550 (January 23, 2006).
4 The language of the current Rule 7033(e), which
had been approved for inclusion in the NASD rule
manual prior to Nasdaq’s separation, was
inadvertently omitted from the form of the Nasdaq
rule manual approved by the Commission in 2006.
See supra. Since at that time no substantive changes
to these provisions were intended, the omitted
language was subsequently reinserted in the Nasdaq
rule manual with retroactive effect to the 2006
separation date. See Securities Exchange Act
Release No. 57347 (February 19, 2008), 73 FR 10080
(February 25, 2008) (SR–NASDAQ–2007–100).
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
Commission under Section 19(b)(1) of
the Act 5 and Rule 19b–4 thereunder.6
If, at a later date, Nasdaq proposed to
modify the operation of MFQS (or
MFDS) in a manner that would cause
this service to fit within the definition
of a facility of the exchange, or if
Nasdaq proposed to tie the fees for this
service to fees for or usage of exchange
services, Nasdaq would file a proposed
rule change with the Commission.7
2. Statutory Basis
Nasdaq believes that MFQS is not a
facility of a national securities exchange
within the meaning of the Act and the
terms of MFQS use are not rules that
must be filed with the Commission
under Section 19(b)(1) of the Act 8 and
Rule 19b–4 thereunder.9 Therefore,
removing the applicable provisions from
the Nasdaq rule book would be
consistent with the provisions of
Section 6(b) of the Act.10
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which Nasdaq consents, the
Commission will:
(A) by order approve such proposed
rule change; or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
5 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
7 See Securities Exchange Act Release No. 56237
(August 9, 2007), 72 FR 46118 (August 16, 2007)
(SR–NASDAQ–2007–043) (approving removal from
Nasdaq rule book of provisions governing operation
of the ACES system).
8 15 U.S.C. 78s(b)(1).
9 17 CFR 240.19b–4.
10 15 U.S.C. 78f(b).
6 17
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Federal Register / Vol. 73, No. 135 / Monday, July 14, 2008 / Notices
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:
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2008–019 on the
subject line.
Paper Comments
pwalker on PROD1PC71 with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15818 Filed 7–11–08; 8:45 am]
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2008–019. 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 Nasdaq. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–NASDAQ–2008–019 and
should be submitted on or before
August 4, 2008.
[Release No. 34–58112; File No. SR–NSX–
2008–11]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change as Modified
by Amendment Nos. 1, 2, and 3
Thereto Relating to the Termination of
the Intermarket Trading System Plan
and to a Technical Change to Rule 8.15
July 7, 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 June 19,
2008, the National Stock Exchange
(‘‘NSX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
On June 27, 2008, the Exchange filed
Amendment Nos. 1 and 2 to the
proposal. On July 2, 2008, the Exchange
filed Amendment No. 3 to the proposal.
The Exchange filed the proposal
pursuant to Section 19(b)(3)(A) of the
Act and Rule 19b–4(f)(6) thereunder,
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Due to the termination of the
Intermarket Trading System (‘‘ITS’’)
Plan, the Exchange is proposing to
eliminate all references to the ITS Plan
in its Rules and Fee Schedules, and to
otherwise make technical and
conforming changes related to the
termination of ITS, as well as a minor
technical change to Rule 8.15
(‘‘Imposition of Fines for Minor
Violation(s) of Rules’’).
The text of the proposed rule change
is available on the Exchange’s Web site
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
17:08 Jul 11, 2008
Jkt 214001
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
40411
at https://www.nsx.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Chapter XIV (‘‘Intermarket Trading
System Plan’’) of the NSX Rules
provides the rules relating to the ITS
Plan under which the Exchange
conducted intermarket trading in
exchange-listed equity securities with
those market centers that were linked
under the ITS Plan.3 In connection with
the implementation of Regulation
NMS,4 the ITS Plan was officially
eliminated.5 Because elimination of ITS
has rendered Chapter XIV obsolete, the
Exchange now proposes to eliminate
Chapter XIV, the Fee Schedule for ITS
Transactions, and all other references to
Chapter XIV and the ITS Plan in the
NSX Rules.
In addition, the Exchange proposes to
make a technical and conforming
change to Interpretation .01 to Rule
8.15, which has been renumbered due to
the deletion of ITS related provisions.
The Exchange also proposes that the
Rule cited in this Interpretation be
changed from Rule 11.9(c) to Rule
11.8(a)(1). This change is required as
Rule 11.9(c), relating to the Exchange’s
legacy trading system, has been
functionally replaced by Rule 11.8(a)(1)
relating to the Exchange’s new trading
system, NSX BLADE.6
Finally, the Exchange proposes to
amend NSX Rule 11.3(a)(ii) to allow
3 See Securities Exchange Act Release No. 19456
(January 27, 1983), 48 FR 4938 (February 3,
1983)(File No. 4–208).
4 17 CFR 242.600 et al.
5 See Securities Exchange Act Release No. 55397
(March 5, 2007), 72 FR 11066 (March 12, 2007)(File
No. 4–208).
6 See Securities Exchange Act Release No. 54391
(August 31, 2006), 71 FR 52836 (September 7, 2006)
(SR–NSX–2006–08).
E:\FR\FM\14JYN1.SGM
14JYN1
]]>Agencies
[Federal Register Volume 73, Number 135 (Monday, July 14, 2008)]
[Notices]
[Pages 40410-40411]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15818]
[[Page 40410]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58102; File No. SR-NASDAQ-2008-019]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto
To Remove From the Nasdaq Rules Fee Provisions Relating to Nasdaq's
Mutual Fund Quotation Service
July 3, 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 March 12, 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. On July 3, 2008, Nasdaq filed
Amendment No. 1 to the proposed rule change. The Commission is
publishing this notice to solicit comments on the proposed rule change,
as amended, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq is proposing to remove from the Nasdaq rules fee provisions
relating to Nasdaq's Mutual Fund Quotation Service (``MFQS''). Nasdaq's
rule book contains rules pertaining to ``facilities'' of the exchange,
and MFQS is not a ``facility'' within the meaning of the Act. The text
of the proposed rule change is available at https://www.complinet.com/
nasdaq, the principal offices of Nasdaq, 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
Developed by the National Association of Securities Dealers
(``NASD'') in the 1980s, MFQS receives daily price-related information
from participating money market funds, mutual funds and unit investment
trusts (``UITs''). Nasdaq disseminates the MFQS-collected information
(as well as certain related publicly-available information) to the
public on a daily basis through its Mutual Funds Dissemination Service
(``MFDS''). Neither MFQS nor MFDS includes either ``last sale'' reports
or other ``real time'' information. Both members and non-members of
Nasdaq are able to participate in MFQS and to receive the information.
Services similar to MFQS/MFDS can be provided by other entities,
including entities that are not national securities exchanges. The ease
with which money market, mutual fund and UIT information can be
collected and transmitted over the Internet makes the environment in
which MFQS and MFDS operate potentially highly competitive.
Nasdaq included MFQS in its rule book when Nasdaq was registered as
a national securities exchange in 2006.\3\ Current Nasdaq Rules 7033
(a) through (d) contain charges paid by funds and UITs for
participating in MFQS. Rules 7033(e) and 7019(b) contain charges paid
by subscribers for the MFQS information provided to them via the
MFDS.\4\
---------------------------------------------------------------------------
\3\ As Nasdaq prepared to begin operating as an independent
national securities exchange in 2006, it replicated sections of the
NASD rule manual and proposed that they be included in the new
Nasdaq rule manual in the same form. See Securities Exchange Act
Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006).
\4\ The language of the current Rule 7033(e), which had been
approved for inclusion in the NASD rule manual prior to Nasdaq's
separation, was inadvertently omitted from the form of the Nasdaq
rule manual approved by the Commission in 2006. See supra. Since at
that time no substantive changes to these provisions were intended,
the omitted language was subsequently reinserted in the Nasdaq rule
manual with retroactive effect to the 2006 separation date. See
Securities Exchange Act Release No. 57347 (February 19, 2008), 73 FR
10080 (February 25, 2008) (SR-NASDAQ-2007-100).
---------------------------------------------------------------------------
Nasdaq believes that by operating MFQS and MFDS, it facilitates the
distribution of information regarding non-exchange activity. As such,
Nasdaq does not believe that either MFQS or MFDS is a facility of a
national securities exchange within the meaning of the Act or that the
applicable charges are rules that need to be filed with the Commission
under Section 19(b)(1) of the Act \5\ and Rule 19b-4 thereunder.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(1).
\6\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
If, at a later date, Nasdaq proposed to modify the operation of
MFQS (or MFDS) in a manner that would cause this service to fit within
the definition of a facility of the exchange, or if Nasdaq proposed to
tie the fees for this service to fees for or usage of exchange
services, Nasdaq would file a proposed rule change with the
Commission.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 56237 (August 9,
2007), 72 FR 46118 (August 16, 2007) (SR-NASDAQ-2007-043) (approving
removal from Nasdaq rule book of provisions governing operation of
the ACES system).
---------------------------------------------------------------------------
2. Statutory Basis
Nasdaq believes that MFQS is not a facility of a national
securities exchange within the meaning of the Act and the terms of MFQS
use are not rules that must be filed with the Commission under Section
19(b)(1) of the Act \8\ and Rule 19b-4 thereunder.\9\ Therefore,
removing the applicable provisions from the Nasdaq rule book would be
consistent with the provisions of Section 6(b) of the Act.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(1).
\9\ 17 CFR 240.19b-4.
\10\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding, or (ii) as to
which Nasdaq consents, the Commission will:
(A) by order approve such proposed rule change; or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
[[Page 40411]]
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-2008-019 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2008-019. 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 Nasdaq. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make publicly available. All
submissions should refer to File Number SR-NASDAQ-2008-019 and should
be submitted on or before August 4, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15818 Filed 7-11-08; 8:45 am]
BILLING CODE 8010-01-P
