Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2 Thereto To Remove From Rule 7019 the Fees for Receiving Index Values, 57725-57727 [E8-23363]
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<![CDATA[
57725
Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices
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 the 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–Phlx–2008–64 and should
be submitted on or before October 24,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23362 Filed 10–2–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58666; File No. SR–
NASDAQ–2008–018]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change and
Amendments No. 1 and 2 Thereto To
Remove From Rule 7019 the Fees for
Receiving Index Values
September 26, 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 by Nasdaq. On
September 5, 2008, Nasdaq filed
Amendment No. 1 to the proposed rule
change. On September 25, 2008, Nasdaq
filed Amendment No. 2 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 Rule 7019 fees for receiving
index values. Nasdaq’s rule book
contains rules pertaining to ‘‘facilities’’
of the exchange, and indexes are not
such ‘‘facilities’’ within the meaning of
the Act.
The text of the proposed rule change
to Rule 7019 is below. Proposed
deletions are in brackets.
*
*
*
*
*
7019. Market Data Distributor Fees
(a) No change.
(b) The charge to be paid by
Distributors of the following Nasdaq
Market Center real time data feeds shall
be:
Monthly direct access fee
Issue Specific Data:
Dynamic Intraday ................................................................................................
TotalView ............................................................................................................
OpenView ...........................................................................................................
[Market Summary Statistics]:
[Intraday] .............................................................................................................
[Real Time Index]
*
(c) and (d) No change.
*
*
*
*
mstockstill on PROD1PC66 with NOTICES
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.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
23:33 Oct 02, 2008
Monthly external
distributor fee
..............................
$2,000
$1,000
..............................
$1,000
$500
..............................
$2,500
$1,250
[$500]
[$50]
[$1,500]
Jkt 217001
1. Purpose
Nasdaq designs and licenses to
financial product issuers and sponsors
and to other interested parties a number
of Nasdaq-proprietary securities
indexes. Nasdaq also calculates the
values of Nasdaq and, on occasion, nonNasdaq indexes and disseminates such
values to subscribers. The Nasdaq
indexes include broad market indexes,
such as the Nasdaq-100 and the Nasdaq
Composite, sectoral indexes, such as
Nasdaq Biotechnology, Nasdaq
Insurance or Nasdaq Transportation,
international indexes, such as Nasdaq
Israel and Nasdaq China, and custom
co-branded indexes, such as Nasdaq
Clean Edge. Some of these indexes
include only those components that are
listed on Nasdaq, while others may also
include components listed on other
exchanges.
All market participants, both
members and non-members of Nasdaq,
are currently able to subscribe to
Nasdaq’s index dissemination service.
Subscribers currently also receive intraday asset values as well as certain oncea-day information for exchange traded
funds (‘‘ETFs’’).3 The intra-day asset
values for ETFs that Nasdaq
disseminates can be calculated by
Nasdaq itself (subject to negotiating an
appropriate agreement on commercial
3 Nasdaq is submitting to the Commission in
connection with this filing the list of indexes and
ETFs that are currently (as of the date of this filing)
included in the Nasdaq index dissemination
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
VerDate Aug<31>2005
Monthly internal
distributor fee
service. This list changes frequently, and an up-todate list is available at: https://
www.nasdaqtrader.com/content/productsservices/
dataproducts/realtimeindexes/indexsymbols.pdf.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
PO 00000
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E:\FR\FM\03OCN1.SGM
03OCN1
57726
Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
terms with the ETF sponsor) or by a
third party.
Nasdaq believes that the business of
creating and licensing indexes is highly
competitive. Some of Nasdaq’s
prominent competitors are Dow Jones,
Russell, Standard & Poor, as well as
many others. It is Nasdaq’s
understanding that license fees that
Nasdaq and its competitors charge for
the actual use of their respective
indexes in connection with the creation
or trading of financial products linked
to such indexes have never been subject
to Commission oversight. However,
Nasdaq’s former corporate parent, then
known as the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
historically included in its rule book
charges for distributing index values,4
and this practice carried over into the
Nasdaq rule book when Nasdaq was
registered as a national securities
exchange in 2006.5
Nasdaq believes that by calculating
and distributing index and ETF values,
it provides information regarding a nonexchange activity.6 As such, Nasdaq
believes that its index dissemination
service is not a facility of a national
securities exchange within the meaning
of the Act and that it is not required
under Section 19(b)(1) of the Act 7 and
Rule 19b–4 thereunder 8 to file rules
regarding the applicable charges.
4 See, e.g., Securities Exchange Act Release No.
34–45685 (Apr. 3, 2002) (approving SR–NASD–
2001–86, modifying the index distribution fee,
which was included in the NASD Manual).
5 See Securities Exchange Act Release No. 34–
53128 (Jan. 13, 2006) (approval of Nasdaq’s
application for registration as a national securities
exchange).
6 The information used in calculating the values
of the Nasdaq indexes is made publicly available,
and Nasdaq’s status as a self-regulatory organization
gives it no special advantage over any other entity
that may wish to calculate the values of these
indexes. Generally, the ‘‘inputs’’ required to make
the calculation include last sale prices and total
shares outstanding for the underlying securities,
and the weighting of each underlying security in
the index. The Nasdaq systems that calculate index
values receive the price data in the same manner
as other subscribers to the relevant data streams
(i.e., from the relevant ‘‘Tapes’’). The total shares
outstanding data are derived from the companies’
SEC public filings, from the notifications that
Nasdaq-listed issuers are required to submit to
Nasdaq in the event of 5% or greater changes in the
total shares outstanding, and on occasion from
information that issuers may voluntarily
communicate to Nasdaq. (In all cases, the current
total shares outstanding figures are posted on a
Nasdaq Web site, and any changes to the posted
figures are reflected on the Web site no later than
when such changes become effective for index
calculations.) Component weightings are normally
determined by index owners using their proprietary
algorithms. In the case of Nasdaq-owned indexes,
component weightings are determined daily by
Nasdaq (in its capacity as the index owner). Nasdaq
makes these weightings available to the public for
purchase.
7 15 U.S.C. 78s(b)(1).
8 17 CFR 240.19b–4.
VerDate Aug<31>2005
23:33 Oct 02, 2008
Jkt 217001
If, at a later date, Nasdaq proposed to
modify the manner in which it
disseminates index values causing this
service to fit within the definition of a
facility of the exchange, or if Nasdaq
proposed to tie the fees that distributors
pay for receiving index values to fees for
or usage of exchange services,9 Nasdaq
would file a proposed rule change with
the Commission.10
2. Statutory Basis
Nasdaq believes that its index
dissemination service is not a facility of
a national securities exchange within
the meaning of the Act and the terms of
this service are not rules that must be
filed with the Commission under
Section 19(b)(1) of the Act 11 and Rule
19b–4 thereunder.12 Therefore,
removing the applicable provisions from
the Nasdaq rule book would be
consistent with the provisions of
Section 6(b) of the Act.13
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 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.
9 Nasdaq does not currently tie the fees that
distributors pay for receiving index values to fees
for or usage of exchange services. Exchange services
include, for example, listing and trading.
10 See Securities Exchange Act Release No. 56237
(Aug. 9, 2007), 72 FR 46118 (Aug. 16, 2007)
(approving removal from exchange rule book of
provisions governing operation of the ACES
system).
11 15 U.S.C. 78s(b)(1).
12 17 CFR 240.19b–4.
13 15 U.S.C. 78f(b).
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2008–018 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–2008–018. 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–2008–018 and
should be submitted on or before
October 24, 2008.
E:\FR\FM\03OCN1.SGM
03OCN1
Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23363 Filed 10–2–08; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
Notice of Applications for Certificates
of Public Convenience and Necessity
and Foreign Air Carrier Permits Filed
Under Subpart B (Formerly Subpart Q)
During the Week Ending September 19,
2008
The following Applications for
Certificates of Public Convenience and
Necessity and Foreign Air Carrier
Permits were filed under Subpart B
(formerly Subpart Q) of the Department
of Transportation’s Procedural
Regulations (See 14 CFR 301.201 et
seq.). The due date for Answers,
Conforming Applications, or Motions to
Modify Scope are set forth below for
each application. Following the Answer
period DOT may process the application
by expedited procedures. Such
procedures may consist of the adoption
of a show-cause order, a tentative order,
or in appropriate cases a final order
without further proceedings.
Docket Number: DOT–OST–2008–
0286.
Date Filed: September 15, 2008.
Due Date for Answers, Conforming
Applications, or Motion to Modify
Scope: October 6, 2008.
Description: Application of Vision
Airlines, Inc. (‘‘Vision’’) requesting an
amendment to its certificate of public
convenience and necessity authorizing
Vision to engage in air transportation of
persons, property and mail with large
aircraft.
Renee V. Wright,
Program Manager, Docket Operations,
Federal Register Liaison.
[FR Doc. E8–23408 Filed 10–2–08; 8:45 am]
BILLING CODE 4910–9X–P
Federal Aviation Act, as amended (49
U.S.C. 1382 and 1384) and procedures
governing proceedings to enforce these
provisions. Answers may be filed within
21 days after the filing of the
application.
Docket Number: DOT–OST–2008–
0287.
Date Filed: September 18, 2008.
Parties: Members of the International
Air Transport Association.
Subject: TC2 Within Middle East
Expedited Resolution 002ca (Memo
0188); Intended effective date: 1 January
2009.
Docket Number: DOT–OST–2008–
0288.
Date Filed: September 18, 2008.
Parties: Members of the International
Air Transport Association.
Subject: TC23/123 Africa–TC3 (except
South West Pacific) , Resolution 015v
(Memo 0389) , Intended effective date:
15 October 2008.
Docket Number: DOT–OST–2008–
0289.
Date Filed: September 18, 2008.
Parties: Members of the International
Air Transport Association.
Subject: TC23/123 Africa-South East
Asia Expedited, Resolution 002bw
(Memo 0390), Intended effective date:
15 October 2008.
Docket Number: DOT–OST–2008–
0290.
Date Filed: September 18, 2008.
Parties: Members of the International
Air Transport Association.
Subject: TC23/123 Middle East-TC3
(except South West Pacific), Resolution
015v (Memo 0391), Intended effective
date: 15 October 2008.
Docket Number: DOT–OST–2008–
0291.
Date Filed: September 18, 2008.
Parties: Members of the International
Air Transport Association.
Subject: TC23/123 Middle East-South
East Asia Expedited, Resolution 002hh
(Memo 0392), Intended effective date:
15 October 2008.
Renee V. Wright,
Program Manager, Docket Operation, Federal
Register Liaison.
[FR Doc. E8–23407 Filed 10–2–08; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF TRANSPORTATION
mstockstill on PROD1PC66 with NOTICES
Office of the Secretary
DEPARTMENT OF TRANSPORTATION
Aviation Proceedings, Agreements
Filed the Week Ending September 19,
2008
Surface Transportation Board
The following Agreements were filed
with the Department of Transportation
under the Sections 412 and 414 of the
14 17
23:33 Oct 02, 2008
CSX Transportation, Inc.—
Abandonment Exemption—in Marion
County, IN
CSX Transportation, Inc. (CSXT) has
filed a verified notice of exemption
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
[STB Docket No. AB–55 (Sub-No. 688X)]
Jkt 217001
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
57727
under 49 CFR part 1152 subpart F—
Exempt Abandonments to abandon a
1.01-mile line of railroad, known as the
Arlington Industrial Track, located on
its Northern Region, Great Lakes
Division, Indianapolis Belt Subdivision,
extending from milepost QIA 1.11
(English Ave.) to the end of the track at
milepost QIA 0.1 in Marion County, IN.
The line traverses United States Postal
Service Zip Code 46219 and includes no
stations.
CSXT has certified that: (1) No local
traffic has moved over the line for at
least 2 years; (2) any overhead traffic on
the line can be rerouted; (3) no formal
complaint filed by a user of rail service
on the line (or by a state or local
government entity acting on behalf of
such user) regarding cessation of service
over the line either is pending with the
Surface Transportation Board or with
any U.S. District Court or has been
decided in favor of complainant within
the 2-year period; and (4) the
requirements of 49 CFR 1105.7
(environmental report), 49 CFR 1105.8
(historic report), 49 CFR 1105.11
(transmittal letter), 49 CFR 1105.12
(newspaper publication), and 49 CFR
1152.50(d)(1) (notice to governmental
agencies) have been met.
As a condition to this exemption, any
employee adversely affected by the
abandonment shall be protected under
Oregon Short Line R. Co.—
Abandonment—Goshen, 360 I.C.C. 91
(1979). To address whether this
condition adequately protects affected
employees, a petition for partial
revocation under 49 U.S.C. 10502(d)
must be filed.
Provided no formal expression of
intent to file an offer of financial
assistance (OFA) has been received, this
exemption will be effective on
November 4, 2008, unless stayed
pending reconsideration.1 Petitions to
stay that do not involve environmental
issues,2 formal expressions of intent to
file an OFA under 49 CFR
1 Pursuant to 49 CFR 1152.50(d)(2), the railroad
must file a verified notice with the Board at least
50 days before the abandonment or discontinuance
is to be consummated. The applicant initially
indicated a proposed consummation date of
November 1, 2008, but because the verified notice
was filed on September 15, 2008, consummation
may not take place prior to November 4, 2008.
2 The Board will grant a stay if an informed
decision on environmental issues (whether raised
by a party or by the Board’s Section of
Environmental Analysis (SEA) in its independent
investigation) cannot be made before the
exemption’s effective date. See Exemption of Outof-Service Rail Lines, 5 I.C.C.2d 377 (1989). Any
request for a stay should be filed as soon as possible
so that the Board may take appropriate action before
the exemption’s effective date.
E:\FR\FM\03OCN1.SGM
03OCN1
]]>Agencies
[Federal Register Volume 73, Number 193 (Friday, October 3, 2008)]
[Notices]
[Pages 57725-57727]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23363]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58666; File No. SR-NASDAQ-2008-018]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2
Thereto To Remove From Rule 7019 the Fees for Receiving Index Values
September 26, 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 by Nasdaq. On September 5, 2008, Nasdaq filed
Amendment No. 1 to the proposed rule change. On September 25, 2008,
Nasdaq filed Amendment No. 2 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 Rule 7019 fees for
receiving index values. Nasdaq's rule book contains rules pertaining to
``facilities'' of the exchange, and indexes are not such ``facilities''
within the meaning of the Act.
The text of the proposed rule change to Rule 7019 is below.
Proposed deletions are in brackets.
* * * * *
7019. Market Data Distributor Fees
(a) No change.
(b) The charge to be paid by Distributors of the following Nasdaq
Market Center real time data feeds shall be:
----------------------------------------------------------------------------------------------------------------
Monthly direct Monthly internal Monthly external
access fee distributor fee distributor fee
----------------------------------------------------------------------------------------------------------------
Issue Specific Data:
Dynamic Intraday................................... ................. ................. .................
TotalView.......................................... $2,000 $1,000 $2,500
OpenView........................................... $1,000 $500 $1,250
[Market Summary Statistics]:
[Intraday]......................................... [$500] [$50] [$1,500]
[Real Time Index]
----------------------------------------------------------------------------------------------------------------
(c) and (d) No change.
* * * * *
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 designs and licenses to financial product issuers and
sponsors and to other interested parties a number of Nasdaq-proprietary
securities indexes. Nasdaq also calculates the values of Nasdaq and, on
occasion, non-Nasdaq indexes and disseminates such values to
subscribers. The Nasdaq indexes include broad market indexes, such as
the Nasdaq-100 and the Nasdaq Composite, sectoral indexes, such as
Nasdaq Biotechnology, Nasdaq Insurance or Nasdaq Transportation,
international indexes, such as Nasdaq Israel and Nasdaq China, and
custom co-branded indexes, such as Nasdaq Clean Edge. Some of these
indexes include only those components that are listed on Nasdaq, while
others may also include components listed on other exchanges.
All market participants, both members and non-members of Nasdaq,
are currently able to subscribe to Nasdaq's index dissemination
service. Subscribers currently also receive intra-day asset values as
well as certain once-a-day information for exchange traded funds
(``ETFs'').\3\ The intra-day asset values for ETFs that Nasdaq
disseminates can be calculated by Nasdaq itself (subject to negotiating
an appropriate agreement on commercial
[[Page 57726]]
terms with the ETF sponsor) or by a third party.
---------------------------------------------------------------------------
\3\ Nasdaq is submitting to the Commission in connection with
this filing the list of indexes and ETFs that are currently (as of
the date of this filing) included in the Nasdaq index dissemination
service. This list changes frequently, and an up-to-date list is
available at: https://www.nasdaqtrader.com/content/productsservices/
dataproducts/realtimeindexes/indexsymbols.pdf.
---------------------------------------------------------------------------
Nasdaq believes that the business of creating and licensing indexes
is highly competitive. Some of Nasdaq's prominent competitors are Dow
Jones, Russell, Standard & Poor, as well as many others. It is Nasdaq's
understanding that license fees that Nasdaq and its competitors charge
for the actual use of their respective indexes in connection with the
creation or trading of financial products linked to such indexes have
never been subject to Commission oversight. However, Nasdaq's former
corporate parent, then known as the National Association of Securities
Dealers, Inc. (``NASD''), historically included in its rule book
charges for distributing index values,\4\ and this practice carried
over into the Nasdaq rule book when Nasdaq was registered as a national
securities exchange in 2006.\5\
---------------------------------------------------------------------------
\4\ See, e.g., Securities Exchange Act Release No. 34-45685
(Apr. 3, 2002) (approving SR-NASD-2001-86, modifying the index
distribution fee, which was included in the NASD Manual).
\5\ See Securities Exchange Act Release No. 34-53128 (Jan. 13,
2006) (approval of Nasdaq's application for registration as a
national securities exchange).
---------------------------------------------------------------------------
Nasdaq believes that by calculating and distributing index and ETF
values, it provides information regarding a non-exchange activity.\6\
As such, Nasdaq believes that its index dissemination service is not a
facility of a national securities exchange within the meaning of the
Act and that it is not required under Section 19(b)(1) of the Act \7\
and Rule 19b-4 thereunder \8\ to file rules regarding the applicable
charges.
---------------------------------------------------------------------------
\6\ The information used in calculating the values of the Nasdaq
indexes is made publicly available, and Nasdaq's status as a self-
regulatory organization gives it no special advantage over any other
entity that may wish to calculate the values of these indexes.
Generally, the ``inputs'' required to make the calculation include
last sale prices and total shares outstanding for the underlying
securities, and the weighting of each underlying security in the
index. The Nasdaq systems that calculate index values receive the
price data in the same manner as other subscribers to the relevant
data streams (i.e., from the relevant ``Tapes''). The total shares
outstanding data are derived from the companies' SEC public filings,
from the notifications that Nasdaq-listed issuers are required to
submit to Nasdaq in the event of 5% or greater changes in the total
shares outstanding, and on occasion from information that issuers
may voluntarily communicate to Nasdaq. (In all cases, the current
total shares outstanding figures are posted on a Nasdaq Web site,
and any changes to the posted figures are reflected on the Web site
no later than when such changes become effective for index
calculations.) Component weightings are normally determined by index
owners using their proprietary algorithms. In the case of Nasdaq-
owned indexes, component weightings are determined daily by Nasdaq
(in its capacity as the index owner). Nasdaq makes these weightings
available to the public for purchase.
\7\ 15 U.S.C. 78s(b)(1).
\8\ 17 CFR 240.19b-4.
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If, at a later date, Nasdaq proposed to modify the manner in which
it disseminates index values causing this service to fit within the
definition of a facility of the exchange, or if Nasdaq proposed to tie
the fees that distributors pay for receiving index values to fees for
or usage of exchange services,\9\ Nasdaq would file a proposed rule
change with the Commission.\10\
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\9\ Nasdaq does not currently tie the fees that distributors pay
for receiving index values to fees for or usage of exchange
services. Exchange services include, for example, listing and
trading.
\10\ See Securities Exchange Act Release No. 56237 (Aug. 9,
2007), 72 FR 46118 (Aug. 16, 2007) (approving removal from exchange
rule book of provisions governing operation of the ACES system).
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2. Statutory Basis
Nasdaq believes that its index dissemination service is not a
facility of a national securities exchange within the meaning of the
Act and the terms of this service are not rules that must be filed with
the Commission under Section 19(b)(1) of the Act \11\ and Rule 19b-4
thereunder.\12\ Therefore, removing the applicable provisions from the
Nasdaq rule book would be consistent with the provisions of Section
6(b) of the Act.\13\
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\11\ 15 U.S.C. 78s(b)(1).
\12\ 17 CFR 240.19b-4.
\13\ 15 U.S.C. 78f(b).
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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.
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 Number SR-NASDAQ-2008-018 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-2008-018. 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-2008-018 and should
be submitted on or before October 24, 2008.
[[Page 57727]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23363 Filed 10-2-08; 8:45 am]
BILLING CODE 8011-01-P
