Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving Proposed Rule Change as Modified by Amendment No. 1 Thereto To Remove From the Nasdaq Rules Fee Provisions Relating to Nasdaq's Mutual Fund Quotation Service, 50382 [E8-19784]

Download as PDF 50382 Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58392; File No. SR– NASDAQ–2008–019] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving Proposed Rule Change as Modified by Amendment No. 1 Thereto To Remove From the Nasdaq Rules Fee Provisions Relating to Nasdaq’s Mutual Fund Quotation Service August 20, 2008. On March 12, 2008, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to remove from the Nasdaq rulebook references to the fees charged by Nasdaq in connection with its Mutual Fund Quotation Service (‘‘MFQS’’). On July 3, 2008, Nasdaq filed Amendment No. 1 to the proposed rule change. The proposed rule change, as amended, was published for comment in the Federal Register on July 14, 2008.3 The Commission received no comments regarding the proposal. This order approves the proposed rule change, as modified by Amendment No. 1. Through the MFQS, Nasdaq collects price data for mutual funds, money market funds, and unit investment trusts.4 This price data includes information such as net asset value, offer/market price, and capital gains distributions.5 Price data may be submitted to Nasdaq by either the fund itself, or by a third-party service facilitator, such as a pricing agent.6 This pricing data is then transmitted to print media and/or market data vendors, depending on the level of service for which the fund qualifies.7 The data interface for the MFQS is separate from the Nasdaq trading system interface.8 Nasdaq Rule 7033 (a) through (d) sets forth the fees that Nasdaq charges money market funds, mutual funds, and unit investment trusts for participating in the MFQS. Nasdaq Rules 7019(b) and 7033(e) set forth the distribution and U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 58102 (July 3, 2008), 73 FR 40410. 4 See MFQS User Guide at www.nasdaqtrader.com. 5 Id. 6 Id. 7 Id. 8 See e-mail from Alex Kogan, Associate General Counsel, Nasdaq, to Andrew Madar, AttorneyAdvisor, Commission, dated August 15, 2008. access fees that Nasdaq charges for MFQS information, which is transmitted via the Mutual Funds Dissemination Service (‘‘MFDS’’). Nasdaq proposes to delete Rule 7033 in its entirety from its rulebook, and the portion of Rule 7019(b) that relates to MFQS fees. The Commission has carefully reviewed the proposed rule change and finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.9 The Commission believes that it is reasonable for Nasdaq to delete the portion of Rule 7019(b) that relates to MFQS fees, and Rule 7033 in its entirety as, based on representations made by Nasdaq, neither the MFQS nor the MFDS appear to be facilities of a national securities exchange within the meaning of the Act. Removing these provisions is thus consistent with the requirements of Section 6(b) of the Act,10 as the fees charged by Nasdaq in connection with the MFQS do not fall within the scope of the rules that must be filed with the Commission pursuant to Section 19(b)(1) of the Act 11 and Rule 19b–4 thereunder.12 If, however, Nasdaq were to propose to tie pricing for the MFQS or the MFDS to an exchange activity, or otherwise modify the MFQS or MFDS such that they fall within the definition of facility of an exchange in the Act,13 Nasdaq would have to file a proposed rule change with the Commission. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–NASDAQ– 2008–019), as modified by Amendment No. 1, be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Acting Secretary. [FR Doc. E8–19784 Filed 8–25–08; 8:45 am] BILLING CODE 8010–01–P 1 15 sroberts on PROD1PC76 with NOTICES 2 17 VerDate Aug<31>2005 00:53 Aug 26, 2008 Jkt 214001 9 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78s(b)(1). 12 17 CFR 240.19b–4. 13 See 15 U.S.C. 78c(a)(2). 14 17 CFR 200.30–3(a)(12). PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58395; File No. SR– NYSEArca–2008–85] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NYSE Arca, Inc. Relating to Listing and Trading of PowerShares Active U.S. Real Estate Fund August 20, 2008. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on August 11, 2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. 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 NYSE Arca, through its wholly-owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’ or the ‘‘Corporation’’), proposes to list and trade the following under NYSE Arca Equities Rule 8.600 (‘‘Managed Fund Shares’’): the PowerShares Active U.S. Real Estate Fund. The text of the proposed rule change is available on the Exchange’s Web site at http:// www.nyse.com, at the Exchange’s principal office 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. 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 C:\FR\FM\26AUN1.SGM 26AUN1

Agencies

[Federal Register Volume 73, Number 166 (Tuesday, August 26, 2008)]
[Notices]
[Page 50382]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19784]



[[Page 50382]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58392; File No. SR-NASDAQ-2008-019]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 
Approving Proposed Rule Change as Modified by Amendment No. 1 Thereto 
To Remove From the Nasdaq Rules Fee Provisions Relating to Nasdaq's 
Mutual Fund Quotation Service

August 20, 2008.
    On March 12, 2008, The NASDAQ Stock Market LLC (``Nasdaq'') filed 
with the Securities and Exchange Commission (``Commission''), pursuant 
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to remove from 
the Nasdaq rulebook references to the fees charged by Nasdaq in 
connection with its Mutual Fund Quotation Service (``MFQS''). On July 
3, 2008, Nasdaq filed Amendment No. 1 to the proposed rule change. The 
proposed rule change, as amended, was published for comment in the 
Federal Register on July 14, 2008.\3\ The Commission received no 
comments regarding the proposal. This order approves the proposed rule 
change, as modified by Amendment No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 58102 (July 3, 
2008), 73 FR 40410.
---------------------------------------------------------------------------

    Through the MFQS, Nasdaq collects price data for mutual funds, 
money market funds, and unit investment trusts.\4\ This price data 
includes information such as net asset value, offer/market price, and 
capital gains distributions.\5\ Price data may be submitted to Nasdaq 
by either the fund itself, or by a third-party service facilitator, 
such as a pricing agent.\6\ This pricing data is then transmitted to 
print media and/or market data vendors, depending on the level of 
service for which the fund qualifies.\7\ The data interface for the 
MFQS is separate from the Nasdaq trading system interface.\8\
---------------------------------------------------------------------------

    \4\ See MFQS User Guide at www.nasdaqtrader.com.
    \5\ Id.
    \6\ Id.
    \7\ Id.
    \8\ See e-mail from Alex Kogan, Associate General Counsel, 
Nasdaq, to Andrew Madar, Attorney-Advisor, Commission, dated August 
15, 2008.
---------------------------------------------------------------------------

    Nasdaq Rule 7033 (a) through (d) sets forth the fees that Nasdaq 
charges money market funds, mutual funds, and unit investment trusts 
for participating in the MFQS. Nasdaq Rules 7019(b) and 7033(e) set 
forth the distribution and access fees that Nasdaq charges for MFQS 
information, which is transmitted via the Mutual Funds Dissemination 
Service (``MFDS''). Nasdaq proposes to delete Rule 7033 in its entirety 
from its rulebook, and the portion of Rule 7019(b) that relates to MFQS 
fees.
    The Commission has carefully reviewed the proposed rule change and 
finds that the proposed rule change is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
national securities exchange.\9\ The Commission believes that it is 
reasonable for Nasdaq to delete the portion of Rule 7019(b) that 
relates to MFQS fees, and Rule 7033 in its entirety as, based on 
representations made by Nasdaq, neither the MFQS nor the MFDS appear to 
be facilities of a national securities exchange within the meaning of 
the Act. Removing these provisions is thus consistent with the 
requirements of Section 6(b) of the Act,\10\ as the fees charged by 
Nasdaq in connection with the MFQS do not fall within the scope of the 
rules that must be filed with the Commission pursuant to Section 
19(b)(1) of the Act \11\ and Rule 19b-4 thereunder.\12\
---------------------------------------------------------------------------

    \9\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78s(b)(1).
    \12\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    If, however, Nasdaq were to propose to tie pricing for the MFQS or 
the MFDS to an exchange activity, or otherwise modify the MFQS or MFDS 
such that they fall within the definition of facility of an exchange in 
the Act,\13\ Nasdaq would have to file a proposed rule change with the 
Commission.
---------------------------------------------------------------------------

    \13\ See 15 U.S.C. 78c(a)(2).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-NASDAQ-2008-019), as modified by 
Amendment No. 1, be, and it hereby is, approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19784 Filed 8-25-08; 8:45 am]
BILLING CODE 8010-01-P