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]

Download as PDF 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 VerDate Aug<31>2005 21:03 Jul 16, 2008 Jkt 214001 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–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 (http://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. VerDate Aug<31>2005 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 (http://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 (http://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 VerDate Aug<31>2005 21:03 Jul 16, 2008 Jkt 214001 PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 41145 Reference Room, and http:// 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]


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

    \3\ 15 U.S.C. 78f.
    \4\ 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.

[[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 (http://
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 (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room, 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\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16346 Filed 7-16-08; 8:45 am]
BILLING CODE 8010-01-P