Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Enhancements to the Nasdaq Regulation Reconnaissance Service, 74549-74551 [E8-28957]
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Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Notices
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
No written comments were either
solicited or received.
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)(A)(ii) of the Act 9 and paragraph
(f)(2) of Rule 19b–4 10 thereunder. At
any time within 60 days of the filing of
the 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.
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
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–Phlx–2008–80 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–Phlx–2008–80. 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 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–2008–80 and should
be submitted on or before December 29,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28960 Filed 12–5–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59023; File No. SR–
NASDAQ–2008–090]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding
Enhancements to the Nasdaq
Regulation Reconnaissance Service
November 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 November
24, 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. 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 the Substance
of the Proposed Rule Change
Nasdaq proposes to establish fees for
an enhancement to the Regulation
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 15
U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
16:32 Dec 05, 2008
74549
Reconnaissance Service, which would
provide firms with the ability to recreate
the Nasdaq/CQS order books and trade
data by way of a visual display. The text
of the proposed rule change is available
on Nasdaq’s Web site, at Nasdaq’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,
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 a fee for
a new enhancement to the Nasdaq
Regulation Reconnaissance Service
(‘‘Reg Recon’’). Reg Recon is currently
available as an add-on to the Nasdaq
Workstation and Weblink ACT 2.0.
Nasdaq is proposing to provide access to
the Market Replay function to Reg
Recon subscribers for an additional fee.
Market Replay is a software program
developed by Nasdaq, which uses
publicly-available information to
recreate and display the Nasdaq/CQS
order books and trade data for any point
in time.3
Nasdaq currently provides Market
Replay for free on a publicly-accessible
Web site as a demonstration of the
product. Nasdaq hopes that vendors will
ultimately purchase Market Replay to
provide access to the functionality to
their customers, either using the
software ‘‘as is’’ or integrating the
software into their proprietary displays.
Nasdaq is proposing to provide Reg
Recon subscribers an option to enhance
their service with an integrated version
of Market Replay.
Market Replay allows users to
reconstruct the market for any Nasdaq/
CQS security, and view trades and
quotes at the millisecond level. In
particular, Market Replay allows users
to access the historical market for a
particular security by entering a symbol,
date, and timeframe. Subscribers may
1 15
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Frm 00098
Fmt 4703
Sfmt 4703
3 Market
E:\FR\FM\08DEN1.SGM
Replay data is delayed 15 minutes.
08DEN1
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Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
view quotes and/or trades in a security
for the day and timeframe requested.
By way of a scrolling chart, Market
Replay displays the National Best Bid
and Offer together with the consolidated
trades for the chosen security in
simulated real time. Users are able to
zoom in on the chart and manipulate
the chart speed and direction. Users
may also filter the data presented on the
chart by market center.4 Market Replay
can also provide users with a list of
trades that occurred during a userdefined timeframe, and can calculate
price and volume statistics for that
timeframe (i.e., minimum/maximum
price, total shares, and Volume
Weighted Average Price).
Similarly, Market Replay can provide
a minimum and maximum National
Best Bid and Offer for a selected
timeframe, as well as the minimum and
maximum bid and offer for each
exchange trading stock during the
timeframe.
In addition to providing a useful
analytical tool, Nasdaq believes that
firms would find Market Replay helpful
in responding to customer inquiries
regarding the price received in a
particular trade. In particular, firms can
send to customers a Nasdaq-validated
screen shot of the moment their
particular trade occurred, confirming
the quality of the execution.
Nasdaq proposes to offer Reg Recon
subscribers access to the Market Replay
function to [sic] for a fee of $500 per
MPID, per month, plus a fee of $50 per
user, per month. The proposed fees will
cover the expense of purchasing the
publicly-available data, as well as cover
the costs associated with purchasing the
Market Replay software from Nasdaq
Data Products as any vendor must do.
The proposed fees will also 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.
Nasdaq notes that the Reg Recon
service generally, and the Market Replay
upgrade are entirely optional services.
Firms may choose to purchase Reg
Recon or not, and those that choose to
purchase it may then choose to
purchase the Market Replay upgrade or
not. If a firm does not perceive that the
4 Currently, Market Replay supports the following
market centers: American Stock Exchange; CBOE
Stock Exchange; Chicago Stock Exchange; Financial
Industry Regulatory Authority; International
Securities Exchange; National Stock Exchange; New
York Stock Exchange; NYSE Arca; Philadelphia
Stock Exchange; and The NASDAQ Stock Market.
Nasdaq plans to add data for the BATS Exchange
and Boston Stock Exchange in the future.
VerDate Aug<31>2005
16:32 Dec 05, 2008
Jkt 217001
Reg Recon and Market Replay services
are sufficiently valuable, it will choose
not to purchase those services.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,5 in
general, and with Section 6(b)(5) of the
Act,6 in particular, in that the proposal
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The amendments
proposed herein will provide Reg Recon
subscribers with a useful analytical tool
with which to analyze and understand
the historical market for Nasdaq/CQS
securities and assist with researching
RegNMS trade-throughs.
Nasdaq also believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,7
in general, and with Section 6(b)(4) of
the Act,8 in particular, in that it
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 the Nasdaq operates or controls,
and it does not unfairly discriminate
between customers, issuers, brokers or
dealers. Use of the Market Replay
enhancement to Reg Recon is voluntary
and the subscription fees will be
imposed on all purchasers equally based
on 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.
5 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4).
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
At any time within 60 days of the
filing of the 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.
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–2008–090 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–2008–090. 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
6 15
PO 00000
Frm 00099
Fmt 4703
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17
Sfmt 4703
E:\FR\FM\08DEN1.SGM
08DEN1
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Notices
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 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
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2008–090 and should be
submitted on or before December 29,
2008.
For the Commission, by the Division of
Trading & Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28957 Filed 12–5–08; 8:45 am]
BILLING CODE 8011–01–P
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
The Exchange proposes to restore a
previously adopted revenue sharing
program for ETF quoting participants on
the Exchange. The text of the proposed
rule change is available at NYSE
Alternext, the Commission’s Public
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. 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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59019; File No. SR–
NYSEALTR–2008–04]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change by NYSE
Alternext US LLC To Implement a
Previously Adopted Revenue Sharing
Program for ETF Quoting Participants
on the Exchange
mstockstill on PROD1PC66 with NOTICES
November 26, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 14, 2008, NYSE Alternext US
LLC (the ‘‘Exchange’’ or ‘‘NYSE
Alternext’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
VerDate Aug<31>2005
16:32 Dec 05, 2008
Jkt 217001
The Exchange proposes to restore a
revenue sharing program (RSP) for ETF
quoting participants on the Exchange.
The RSP was first put in place by the
Exchange for ETF specialists and
registered traders effective July 1, 2007,
and was to last through December 31,
2007, unless otherwise extended.4 The
RSP was subsequently extended through
the end of September 2008.5 The RSP
was inadvertently allowed to lapse on
September 30, 2008, without the
Exchange filing to extend it, so the
purpose of the instant filing is to restore
the RSP on the terms described below
on a prospective basis, effective
immediately, through November 30,
2008, by which point the trading of
ETFs currently listed on the Exchange is
4 Securities Exchange Act Release No. 55983
(June 29, 2007), 72 FR 37059 (July 6, 2007) (SR–
Amex–2007–68). The RSP was subsequently
extended to Designated Amex Remote Traders, now
known as Designated NYSE Alternext Remote
Traders (DARTs). Securities Exchange Act Release
No. 57540 (March 20, 2008), 73 FR 16399 (March
27, 2008) (SR–Amex–2008–23).
5 Securities Exchange Act Release No. 57541
(March 20, 2008), 73 FR 16400 (March 27, 2008)
(SR–Amex–2008–25) (prospectively extending RSP
from March 18, 2008, through end of September
2008). See also Securities Exchange Act Release No.
57794 (May 7, 2008), 73 FR 27582 (May 13, 2008)
(SR–Amex–2008–34) (retroactively extending RSP
from January 1, 2008, through March 17, 2008).
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
74551
expected to terminate in favor of having
willing issuers list and trade such
products on NYSE Alternext’s sister
exchange NYSE Arca, Inc. (the ‘‘ETF
Transfer’’).6 The Exchange is making a
separate filing to request retroactive
application of the RSP for the period
October 1, 2008, through November 13,
2008.
RSP payments will be made from the
Exchange’s general revenues and will
not be limited to a particular revenue
source. In order to continue to provide
ETF quoting participants (ETF
specialists, registered traders, and
DARTs) with a source of payments to
provide incentives to quote aggressively
in Exchange-traded shares up until the
ETF Transfer, the Exchange proposes to
distribute revenue to quoting
participants as outlined below:
• ETF specialists may receive an aggregate
RSP payment (calculated monthly) of as
much as $0.0024 per share (or 24 cents per
100 shares) whenever the specialist either
buys or sells his specialty ETF on the
Exchange and is a provider of liquidity in
that transaction (e.g., whose quote is traded
against or who offsets an order imbalance as
part of an opening or closing transaction).
The RSP payment is comprised of $0.0004
per share (or 4 cents per 100 shares) for all
shares executed on the Exchange in their
specialty ETF (irrespective of whether the
specialist is the provider of liquidity), plus
another $0.0020 (or 20 cents per 100 shares)
if the specialist is the provider of liquidity in
the transaction. If the specialist is not the
liquidity provider, then the RSP payment is
limited to $0.0004 per share executed on the
Exchange in their specialty ETF.
• Registered traders in ETFs will receive
an RSP payment of $0.0010 per share (or 10
cents per 100 shares) whenever the registered
trader either buys or sells an ETF on the
Exchange and is a provider of liquidity in
that transaction.
• DARTS will receive an RSP payment of
$0.0015 per share (or 15 cents per 100 shares)
whenever the DART either buys or sells an
ETF on the Exchange and is a provider of
liquidity in that transaction.
No ETF quoting participant will
receive an RSP payment when they are
contra-parties to the same transaction.
Further, RSP payments will only be
made on transactions in securities
trading at less than $1.00 in amounts
proportionate to the amount on which
the Exchange collects revenue. Finally,
as customer transaction charges are
capped at $100 per transaction, meaning
that transaction charges are assessed on
only the first 43,478 shares executed,
ETF quoting participants will only
6 Securities Exchange Act Release No. 58364
(August 14, 2008), 73 FR 49508 (August 21, 2008)
(SR–Amex–2008–65) (describing process by which
issuers of ETFs and structured products on the
Exchange would voluntarily delist and transfer
such listings to NYSE Arca).
E:\FR\FM\08DEN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 236 (Monday, December 8, 2008)]
[Notices]
[Pages 74549-74551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28957]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59023; File No. SR-NASDAQ-2008-090]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Enhancements to the Nasdaq Regulation Reconnaissance Service
November 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 November 24, 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. 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 the
Substance of the Proposed Rule Change
Nasdaq proposes to establish fees for an enhancement to the
Regulation Reconnaissance Service, which would provide firms with the
ability to recreate the Nasdaq/CQS order books and trade data by way of
a visual display. The text of the proposed rule change is available on
Nasdaq's Web site, at Nasdaq'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, 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 a fee for a new enhancement to the
Nasdaq Regulation Reconnaissance Service (``Reg Recon''). Reg Recon is
currently available as an add-on to the Nasdaq Workstation and Weblink
ACT 2.0. Nasdaq is proposing to provide access to the Market Replay
function to Reg Recon subscribers for an additional fee. Market Replay
is a software program developed by Nasdaq, which uses publicly-
available information to recreate and display the Nasdaq/CQS order
books and trade data for any point in time.\3\
---------------------------------------------------------------------------
\3\ Market Replay data is delayed 15 minutes.
---------------------------------------------------------------------------
Nasdaq currently provides Market Replay for free on a publicly-
accessible Web site as a demonstration of the product. Nasdaq hopes
that vendors will ultimately purchase Market Replay to provide access
to the functionality to their customers, either using the software ``as
is'' or integrating the software into their proprietary displays.
Nasdaq is proposing to provide Reg Recon subscribers an option to
enhance their service with an integrated version of Market Replay.
Market Replay allows users to reconstruct the market for any
Nasdaq/CQS security, and view trades and quotes at the millisecond
level. In particular, Market Replay allows users to access the
historical market for a particular security by entering a symbol, date,
and timeframe. Subscribers may
[[Page 74550]]
view quotes and/or trades in a security for the day and timeframe
requested.
By way of a scrolling chart, Market Replay displays the National
Best Bid and Offer together with the consolidated trades for the chosen
security in simulated real time. Users are able to zoom in on the chart
and manipulate the chart speed and direction. Users may also filter the
data presented on the chart by market center.\4\ Market Replay can also
provide users with a list of trades that occurred during a user-defined
timeframe, and can calculate price and volume statistics for that
timeframe (i.e., minimum/maximum price, total shares, and Volume
Weighted Average Price).
---------------------------------------------------------------------------
\4\ Currently, Market Replay supports the following market
centers: American Stock Exchange; CBOE Stock Exchange; Chicago Stock
Exchange; Financial Industry Regulatory Authority; International
Securities Exchange; National Stock Exchange; New York Stock
Exchange; NYSE Arca; Philadelphia Stock Exchange; and The NASDAQ
Stock Market. Nasdaq plans to add data for the BATS Exchange and
Boston Stock Exchange in the future.
---------------------------------------------------------------------------
Similarly, Market Replay can provide a minimum and maximum National
Best Bid and Offer for a selected timeframe, as well as the minimum and
maximum bid and offer for each exchange trading stock during the
timeframe.
In addition to providing a useful analytical tool, Nasdaq believes
that firms would find Market Replay helpful in responding to customer
inquiries regarding the price received in a particular trade. In
particular, firms can send to customers a Nasdaq-validated screen shot
of the moment their particular trade occurred, confirming the quality
of the execution.
Nasdaq proposes to offer Reg Recon subscribers access to the Market
Replay function to [sic] for a fee of $500 per MPID, per month, plus a
fee of $50 per user, per month. The proposed fees will cover the
expense of purchasing the publicly-available data, as well as cover the
costs associated with purchasing the Market Replay software from Nasdaq
Data Products as any vendor must do. The proposed fees will also 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.
Nasdaq notes that the Reg Recon service generally, and the Market
Replay upgrade are entirely optional services. Firms may choose to
purchase Reg Recon or not, and those that choose to purchase it may
then choose to purchase the Market Replay upgrade or not. If a firm
does not perceive that the Reg Recon and Market Replay services are
sufficiently valuable, it will choose not to purchase those services.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\5\ in general, and with Section
6(b)(5) of the Act,\6\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The amendments proposed
herein will provide Reg Recon subscribers with a useful analytical tool
with which to analyze and understand the historical market for Nasdaq/
CQS securities and assist with researching RegNMS trade-throughs.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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Nasdaq also believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\7\ in general, and with
Section 6(b)(4) of the Act,\8\ in particular, in that it 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 the Nasdaq operates or controls, and it does not unfairly
discriminate between customers, issuers, brokers or dealers. Use of the
Market Replay enhancement to Reg Recon is voluntary and the
subscription fees will be imposed on all purchasers equally based on
the level of service selected.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of the 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.
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-2008-090 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-2008-090. 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
[[Page 74551]]
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 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 available
publicly. All submissions should refer to File Number SR-NASDAQ-2008-
090 and should be submitted on or before December 29, 2008.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading & Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-28957 Filed 12-5-08; 8:45 am]
BILLING CODE 8011-01-P
