Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Establish Fees for Nasdaq Market Pathfinders Service, 41143-41145 [E8-16346]
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Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
trades in FX Options; with regards to
the fee pilot terminations, the Exchange
believes there is no longer a need to
provide an incentive to trade in those
products or in the Exchange’s
Facilitation Mechanism; with regards to
the fee consolidation, the proposed rule
change will simplify the fee schedule.
The Exchange notes that the fee changes
are also equitably allocated in that they
equally apply to all members of the
Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose 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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 6 and Rule 19b–4(f)(2) 7
thereunder because it establishes or
changes a due, fee, or other charge
imposed on members by ISE. At any
time within 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 necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.8
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:
mstockstill on PROD1PC66 with NOTICES
6 15
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
8 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on July 9, 2008, the date
on which the ISE submitted Amendment No. 2. See
15 U.S.C. 78s(b)(3)(C).
7 17
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21:03 Jul 16, 2008
Jkt 214001
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–ISE–2008–54 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.
41143
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58145; File No. SR–
NASDAQ–2008–016]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Establish Fees for Nasdaq Market
Pathfinders Service
July 11, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 27,
2008, The NASDAQ Stock Market LLC
All submissions should refer to File
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Number SR–ISE–2008–54. This file
Securities and Exchange Commission
number should be included on the
subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule
change as described in Items I, II, and
Commission process and review your
III below, which Items have been
comments more efficiently, please use
prepared substantially by Nasdaq. The
only one method. The Commission will
Commission is publishing this notice to
post all comments on the Commission’s solicit comments on the proposed rule
Internet Web site (https://www.sec.gov/
change from interested persons.
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
change that are filed with the
Nasdaq is filing with the Commission
a proposed rule change to establish fees
Commission, and all written
to make Nasdaq Market Pathfinders
communications relating to the
service available via either a Web-based
proposed rule change between the
Commission and any person, other than data product or via a data feed that will
provide aggregated market activity of
those that may be withheld from the
certain market participants referred to as
public in accordance with the
‘‘Pathfinders.’’
provisions of 5 U.S.C. 552, will be
The text of the proposed rule change
available for inspection and copying in
is below. All text is new.
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
7044. Nasdaq Market Pathfinders
DC 20549, on official business days
Service
between the hours of 10 a.m. and 3 p.m.
(a) The Nasdaq Market Pathfinders
Copies of such filing also will be
Service will allow participating
available for inspection and copying at
subscribers to view a real time data
the principal office of the Exchange. All product that tracks the aggregated
comments received will be posted
market activity of certain market
without change; the Commission does
participants who are aggressively
not edit personal identifying
buying and/or selling.
information from submissions. You
(b) Standard Charge.
(1) 30-Day Free-Trial Offer. Nasdaq
should submit only information that
you wish to make publicly available. All shall offer all new and potential new
Nasdaq Market Pathfinders subscribers a
submissions should refer to File
Number SR–ISE–2008–54 and should be 30-day waiver of the user fees for the
service. This waiver may be provided
submitted on or before August 7, 2008.
only once to a specific new subscriber
For the Commission, by the Division of
or potential subscriber.
Trading and Markets, pursuant to delegated
(2) The following charges shall apply
authority.9
to Nasdaq Market Pathfinders
Florence E. Harmon,
subscribers and to new subscribers after
Acting Secretary.
the conclusion of the 30-day waiver
period:
[FR Doc. E8–16363 Filed 7–16–08; 8:45 am]
(A) Professional subscriber access to
BILLING CODE 8010–01–P
view and print the Web reports shall be
available for a fee of $50/month;
PO 00000
1 15
9 17
CFR 200.30–3(a)(12).
Frm 00118
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\17JYN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
17JYN1
41144
Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
(B) Non-professional subscriber access
to view and print the Web reports shall
be available for a fee of $10/month; and
(C) Access to the data feed shall be
available to any subscriber for a fee of
$2,500/month. Subsequent subscriber
licenses will cost the fees set forth in
(b)(1) and (2), above.
*
*
*
*
*
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.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to establish fees for
a new data service that tracks the
aggregated buying and selling patterns
of market participants, or ‘‘Pathfinders,’’
that are aggressively buying or selling
stocks traded on Nasdaq transaction
systems. Nasdaq has created the new
product to address what it perceives to
be a demand for a Nasdaq product that
provides a real time indication of how
aggressively thse market participants are
buying or selling a particular stock.
To determine Pathfinders, Nasdaq
identifies market participants that are
taking a position (bullishly lengthening
their position or bearishly shortening
their position) over an extended period
of time. The Nasdaq Market Pathfinders
product will capture the aggregate
sentiment of this well informed group
by indicating the number of Pathfinders
bullish versus bearish in a particular
stock and the ratio of shares bought
versus sold by Pathfinders.
The Nasdaq Market Pathfinders
information will be updated
periodically for every issue traded by
Nasdaq. At each update, Nasdaq will
identify Pathfinders over several time
periods such as: the past five minutes,
the past one hour, and the past two
hours. Net trading activity is calculated
for all market participants over such
time periods and those that have been
consistently lengthening or shortening
their position in a stock over that time
period are identified as Pathfinders.
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21:03 Jul 16, 2008
Jkt 214001
Pathfinders are kept anonymous and
the aggregation of their buy versus sell
shares is used to determine whether this
group is bullish or bearish on a
particular security. Pathfinder
information will be used in an aggregate
manner that does not directly or
indirectly identify a particular
Pathfinder as the source of the
information.
To calculate the Pathfinder statistics,
Nasdaq begins by determining which
market participants to designate as
Pathfinders. To do this Nasdaq
calculates the total shares bought and
sold by each market participant in each
security. Nasdaq then compares the
number bought and sold, for example
9,000 shares bought and 1,000 shares
sold (a buy-sell ratio of 9:1). A
Pathfinder is a market participant that
has an extreme buy-sell ratio, for
example having a buy-sell ratio of 9:1 or
1:9. Any market participant meeting that
standard will be considered to be a
Pathfinder.
In the second stage, Nasdaq will
calculate the aggregate buy-sell ratio for
all the Pathfinders as a group. There
must be a minimum of three Pathfinders
identified in a stock for a time period.
If fewer than three are identified, then
Nasdaq will not distribute Pathfinders
data because it could compromise the
identity and buying and selling behavior
of an individual market participant.
The aggregate buy-sell ratio for
Pathfinders is expressed in two ways.
The first is the ratio of the number of
Pathfinders predominantly buying
compared to Pathfinders predominantly
selling. The second is the ratio of shares
bought to shares sold by Pathfinders as
a group. For example, if only one
Pathfinder is buying and five are selling
then the buy-sell ratio is 1:5 in the count
of Pathfinders buying to selling. If the
one Pathfinder buying has bought
100,000 shares while the five selling
have sold only 10,000 shares total, then
the ratio is 10:1 in the volume of
Pathfinder buying to selling.
The Nasdaq Market Pathfinders
service will provide subscribers with
the ability to detect changes in market
sentiment in stocks traded on Nasdaq
transaction systems, and thereby to
gauge market sentiment based on those
buying and selling patterns. The
information will be disseminated in a
data feed that provides the current
Pathfinders’ situation for each stock
over multiple time periods. In some
stocks and time periods there will not
be any market participants that qualify
as Pathfinders. In those cases, the
Nasdaq Market Pathfinders product will
indicate a neutral situation.
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
There will be two main areas in
which this service will be deployed.
The first level of service will enable
users to access the product through the
web with a graphical user interface
linked to the data. A single subscriber
will be able to construct a variety of
custom queries and view and print this
data. The second level of service will
allow a subscriber to gain direct access
to the raw data via the Nasdaq Market
Pathfinders data feed.
Given the purely voluntary nature of
this service, Nasdaq anticipates that this
filing will not be contentious in that no
firm or individual will be forced to
purchase the product or pay a fee to
which they object. Further, the 30-day
free-trial period will allow the
subscriber community to assess the
business use and value of the new
service prior to making a decision
whether or not to purchase the product
for a longer period.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,3 in
general, and with Section 6(b)(4) of the
Act,4 in particular, in that the proposal
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, and
it does not unfairly discriminate
between customers, issuers, brokers or
dealers. Use of Pathfinders service is
voluntary and the subscription fees will
be imposed on all purchasers equally
based on the professional/nonprofessional status of issuers and/or the
level of service selected. The proposed
fees will cover the costs associated with
establishing the service, responding to
customer requests, configuring Nasdaq’s
systems, programming to user
specifications, and administering the
service, among other things.
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.
3 15
4 15
E:\FR\FM\17JYN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
17JYN1
Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices
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 the self-regulatory
organization 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.
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
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2008–016 and should be
submitted on or before August 7, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16346 Filed 7–16–08; 8:45 am]
BILLING CODE 8010–01–P
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
mstockstill on PROD1PC66 with NOTICES
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–NASDAQ–2008–016 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58137; File No. SR–NYSE–
2008–55]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Amending
Rule 17 To Address Issues Related to
Vendor Liability
July 10, 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 July 7,
Paper Comments
2008, New York Stock Exchange LLC
• Send paper comments in triplicate
(‘‘NYSE’’ or ‘‘Exchange’’) filed with the
to Secretary, Securities and Exchange
Commission, Station Place, 100 F Street, Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
NE., Washington, DC 20549–1090.
change as described in Items I and II
All submissions should refer to File
below, which Items have been prepared
Number SR–NASDAQ–2008–016. This
by the Exchange. The Exchange filed the
file number should be included on the
proposal as a ‘‘non-controversial’’
subject line if e-mail is used. To help the proposed rule change pursuant to
Commission process and review your
Section 19(b)(3)(A) 3 of the Act and Rule
comments more efficiently, please use
19b–4(f)(6) thereunder,4 which renders
only one method. The Commission will the proposal effective upon filing with
post all comments on the Commission’s the Commission. The Commission is
Internet Web site (https://www.sec.gov/
publishing this notice to solicit
rules/sro.shtml). Copies of the
comments on the proposed rule change
submission, all subsequent
from interested persons.
amendments, all written statements
I. Self-Regulatory Organization’s
with respect to the proposed rule
Statement of the Terms of Substance of
change that are filed with the
the Proposed Rule Change
Commission, and all written
communications relating to the
The Exchange proposes to amend
proposed rule change between the
NYSE 17 to address issues related to
Commission and any person, other than vendor liability. The text of the
those that may be withheld from the
proposed rule change is available at the
public in accordance with the
Exchange, the Commission’s Public
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
5 17 CFR 200.30–3(a)(12).
the Commission’s Public Reference
115 U.S.C. 78s(b)(1).
Room, on official business days between
217 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
the hours of 10 a.m. and 3 p.m. Copies
4 17 CFR 240.19b–4(f)(6).
of such filing also will be available for
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21:03 Jul 16, 2008
Jkt 214001
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
41145
Reference Room, and https://
www.nyse.com.
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. NYSE
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
The Exchange proposes to amend
NYSE Rule 17 to address issues related
to vendor liability.
Background
Currently, NYSE Rule 17(a) provides:
The Exchange shall not be liable for any
damages sustained by a member, allied
member or member organization growing out
of the use or enjoyment by such member,
allied member or member organization of the
facilities afforded by the Exchange, except as
provided in the rules.5
NYSE Rule 17 does not specifically
address liability for any loss sustained
by a member or member organization
arising from use of any systems, services
or facilities provided by a vendor to the
Exchange.
Due to the highly diversified nature of
the Exchange business and trading
operations, the Exchange retains the
services of various vendors in its regular
course of business. Through this
amendment, the Exchange proposes to
amend NYSE Rule 17 to permit the
Exchange to expressly provide in the
contract with any vendor that it and/or
its subcontractors of electronic systems,
services or facilities are not liable for
any loss sustained by a member or
member organization arising from use of
the vendor and/or subcontractor
systems, services or facilities. The
proposed amendment to NYSE Rule 17
would further require members and
member organizations to indemnify the
Exchange and its vendors and/or
subcontractors.
5 See NYSE Rule 18 (Compensation in Relation to
Exchange System Failure), which provides for
compensation by the Exchange to members and
member organizations for a loss sustained as a
result of an NYSE systems failure, as defined by the
Rule.
E:\FR\FM\17JYN1.SGM
17JYN1
]]>Agencies
[Federal Register Volume 73, Number 138 (Thursday, July 17, 2008)]
[Notices]
[Pages 41143-41145]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16346]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58145; File No. SR-NASDAQ-2008-016]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change To Establish Fees for Nasdaq
Market Pathfinders Service
July 11, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 27, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared substantially by Nasdaq.
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq is filing with the Commission a proposed rule change to
establish fees to make Nasdaq Market Pathfinders service available via
either a Web-based data product or via a data feed that will provide
aggregated market activity of certain market participants referred to
as ``Pathfinders.''
The text of the proposed rule change is below. All text is new.
7044. Nasdaq Market Pathfinders Service
(a) The Nasdaq Market Pathfinders Service will allow participating
subscribers to view a real time data product that tracks the aggregated
market activity of certain market participants who are aggressively
buying and/or selling.
(b) Standard Charge.
(1) 30-Day Free-Trial Offer. Nasdaq shall offer all new and
potential new Nasdaq Market Pathfinders subscribers a 30-day waiver of
the user fees for the service. This waiver may be provided only once to
a specific new subscriber or potential subscriber.
(2) The following charges shall apply to Nasdaq Market Pathfinders
subscribers and to new subscribers after the conclusion of the 30-day
waiver period:
(A) Professional subscriber access to view and print the Web
reports shall be available for a fee of $50/month;
[[Page 41144]]
(B) Non-professional subscriber access to view and print the Web
reports shall be available for a fee of $10/month; and
(C) Access to the data feed shall be available to any subscriber
for a fee of $2,500/month. Subsequent subscriber licenses will cost the
fees set forth in (b)(1) and (2), above.
* * * * *
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 proposes to establish fees for a new data service that
tracks the aggregated buying and selling patterns of market
participants, or ``Pathfinders,'' that are aggressively buying or
selling stocks traded on Nasdaq transaction systems. Nasdaq has created
the new product to address what it perceives to be a demand for a
Nasdaq product that provides a real time indication of how aggressively
thse market participants are buying or selling a particular stock.
To determine Pathfinders, Nasdaq identifies market participants
that are taking a position (bullishly lengthening their position or
bearishly shortening their position) over an extended period of time.
The Nasdaq Market Pathfinders product will capture the aggregate
sentiment of this well informed group by indicating the number of
Pathfinders bullish versus bearish in a particular stock and the ratio
of shares bought versus sold by Pathfinders.
The Nasdaq Market Pathfinders information will be updated
periodically for every issue traded by Nasdaq. At each update, Nasdaq
will identify Pathfinders over several time periods such as: the past
five minutes, the past one hour, and the past two hours. Net trading
activity is calculated for all market participants over such time
periods and those that have been consistently lengthening or shortening
their position in a stock over that time period are identified as
Pathfinders.
Pathfinders are kept anonymous and the aggregation of their buy
versus sell shares is used to determine whether this group is bullish
or bearish on a particular security. Pathfinder information will be
used in an aggregate manner that does not directly or indirectly
identify a particular Pathfinder as the source of the information.
To calculate the Pathfinder statistics, Nasdaq begins by
determining which market participants to designate as Pathfinders. To
do this Nasdaq calculates the total shares bought and sold by each
market participant in each security. Nasdaq then compares the number
bought and sold, for example 9,000 shares bought and 1,000 shares sold
(a buy-sell ratio of 9:1). A Pathfinder is a market participant that
has an extreme buy-sell ratio, for example having a buy-sell ratio of
9:1 or 1:9. Any market participant meeting that standard will be
considered to be a Pathfinder.
In the second stage, Nasdaq will calculate the aggregate buy-sell
ratio for all the Pathfinders as a group. There must be a minimum of
three Pathfinders identified in a stock for a time period. If fewer
than three are identified, then Nasdaq will not distribute Pathfinders
data because it could compromise the identity and buying and selling
behavior of an individual market participant.
The aggregate buy-sell ratio for Pathfinders is expressed in two
ways. The first is the ratio of the number of Pathfinders predominantly
buying compared to Pathfinders predominantly selling. The second is the
ratio of shares bought to shares sold by Pathfinders as a group. For
example, if only one Pathfinder is buying and five are selling then the
buy-sell ratio is 1:5 in the count of Pathfinders buying to selling. If
the one Pathfinder buying has bought 100,000 shares while the five
selling have sold only 10,000 shares total, then the ratio is 10:1 in
the volume of Pathfinder buying to selling.
The Nasdaq Market Pathfinders service will provide subscribers with
the ability to detect changes in market sentiment in stocks traded on
Nasdaq transaction systems, and thereby to gauge market sentiment based
on those buying and selling patterns. The information will be
disseminated in a data feed that provides the current Pathfinders'
situation for each stock over multiple time periods. In some stocks and
time periods there will not be any market participants that qualify as
Pathfinders. In those cases, the Nasdaq Market Pathfinders product will
indicate a neutral situation.
There will be two main areas in which this service will be
deployed. The first level of service will enable users to access the
product through the web with a graphical user interface linked to the
data. A single subscriber will be able to construct a variety of custom
queries and view and print this data. The second level of service will
allow a subscriber to gain direct access to the raw data via the Nasdaq
Market Pathfinders data feed.
Given the purely voluntary nature of this service, Nasdaq
anticipates that this filing will not be contentious in that no firm or
individual will be forced to purchase the product or pay a fee to which
they object. Further, the 30-day free-trial period will allow the
subscriber community to assess the business use and value of the new
service prior to making a decision whether or not to purchase the
product for a longer period.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\3\ in general, and with Section
6(b)(4) of the Act,\4\ in particular, in that the proposal 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, and it does not unfairly
discriminate between customers, issuers, brokers or dealers. Use of
Pathfinders service is voluntary and the subscription fees will be
imposed on all purchasers equally based on the professional/non-
professional status of issuers and/or the level of service selected.
The proposed fees will cover the costs associated with establishing the
service, responding to customer requests, configuring Nasdaq's systems,
programming to user specifications, and administering the service,
among other things.
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\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(4).
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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.
[[Page 41145]]
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 the self-regulatory organization 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.
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 No. SR-NASDAQ-2008-016 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, Station Place, 100 F Street, NE., Washington,
DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2008-016. 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, 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 available publicly. All submissions should refer to
File Number SR-NASDAQ-2008-016 and should be submitted on or before
August 7, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16346 Filed 7-16-08; 8:45 am]
BILLING CODE 8010-01-P
