[Federal Register: December 16, 2002 (Volume 67, Number 241)]
[Notices]
[Page 77121-77123]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16de02-91]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46977; File No. SR-NASD-2002-160]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc. To Remove Inoperative Rule Language Relating
to Fees for the Nasdaq Workstation I Service
December 9, 2002.
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 5, 2002, the National Association of Securities Dealers,
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Nasdaq has prepared. Nasdaq has designated this
proposal as one concerned solely with the administration of the self-
regulatory organization under section 19(b)(3)(A)(iii) of the Act \3\
and Rule 19b-4(f)(3) thereunder,\4\ which renders the rule immediately
effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to amend NASD Rules 7010(f) and 7020 to remove
inoperative rule language relating to fees for the discontinued Nasdaq
Workstation I service. Nasdaq will implement the proposed rule change
immediately upon filing.
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in [brackets].
A. Rule 7010. System Services
(a)-(e) No change.
(f) Nasdaq WorkstationTM Service:
(1) [The following charges shall apply to the receipt of Level 2 or
Level 3 Nasdaq Service via an authorized personal computer (PC):]
[Service Charge]....................... [$345/PC/month].
[Advance Communication Charge]......... [$135/PC/month for the first
unit, $85/PC/month for each
additional unit at the same
site].
[Maintenance (offered only on UNISYS [$55/PC/month].
and Tandem PCs)].
[Second Monitor/keyboard Attached to an [$195/month].
Authorized PC].
[[Page 77122]]
[(2)] The following charges shall apply to the receipt of Level 2
or Level 3 Nasdaq Service via equipment and communications linkages
prescribed for the Nasdaq Workstation II Service:
Service Charge......................... $1,875/month per service
delivery platform (``SDP'')
from December 1, 2000 through
February 28, 2001, $2,035/
month per SDP beginning March
1, 2001.
Display Charge......................... $525/month per presentation
device (``PD'').
Additional Circuit/SDP Charge.......... $3,075 per month from December
1, 2000 through February 28,
2001, and $3,235/month
beginning March 1, 2001*.
Maintenance............................ $55/SDP or PD logon/month.
A subscriber that accesses Nasdaq Workstation II Service via an
application programming interface (``API'') shall be assessed the
Service Charge for each of the subscriber's SDPs and shall be assessed
the Display Charge for each of the subscriber's API linkages, including
an NWII substitute or quote-update facility. API subscribers also shall
be subject to the Additional Circuit /SDP Charge.
(3) No change.
* A subscriber shall be subject to the Additional Circuit/SDP
Charge when the subscriber has not maximized capacity on its SDPs by
placing eight PDs and/or API servers on an SDP and obtains an
additional SDP(s); in such case, the subscriber shall be charged the
Additional Circuit/SDP Charge (in lieu of the service charge) for each
``underutilized'' SDP(s) (i.e., the difference between the number of
SDPs a subscriber has and the number of SDPs the subscriber would need
to support its PDs and/or API servers, assuming an eight-to-one ratio).
A subscriber also shall be subject to the Additional Circuit/SDP Charge
when the subscriber has not maximized capacity on its T1 circuits by
placing eighteen SDPs on a T1 circuit; in such case, the subscriber
shall be charged the Additional Circuit/SDP Charge (in lieu of the
service charge) for each ``underutilized'' SDP slot on the existing T1
circuit(s). Regardless of the SDP allocation across T1 circuits, a
subscriber will not be subject to the Additional Circuit/SDP Charge if
the subscriber does not exceed the minimum number of T1 circuits needed
to support its SDP, assuming an eighteen-to-one ratio.
(g)-(s) No change.
7020. [Equipment Related Charges] Reserved
[(a) The charge for using Nasdaq terminal equipment shall be $120
per month for the first terminal and $105 per month for each additional
terminal where all terminals are located on the same premises.]
[(b) The charge for using interrogation or display devices which
are not supplied by Nasdaq, but which utilize a Nasdaq supplied modem,
shall be $75 per month for the first comparable device and $55 per
month for each additional comparable device where all devices are
located on the same premises.]
[(c) The charge for using interrogation or display devices and
modems which are not supplied by Nasdaq shall be $50 per month for each
such device located on the same premises.]
[(d) Nasdaq subscribers utilizing UNISYS or Tandem personal
computers (PCs) authorized for emulation of the Harris standard
terminal may elect to receive maintenance through Nasdaq at the rate of
$55/PC/month.]
* * * * *
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 had 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
The purpose of this rule filing is to remove several provisions
from Nasdaq's schedule of charges for service and equipment that
reflect charges for the discontinued Nasdaq Workstation I service,
which was replaced by the Nasdaq Workstation II service (``NWII'')
during the mid-1990s.\5\ The services to which these charges relate are
no longer provided by Nasdaq, so the fees are being removed from the
rules. In addition, language relating to a $55 per month computer
hardware maintenance fee, which remains applicable to NWII, is being
relocated, with updated terminology being used to describe the fee.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 35189 (January 3,
1995), 60 FR 3014 (January 12, 1995) (SR-NASD-94-76).
---------------------------------------------------------------------------
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of section 15A of the Act,\6\ including section
15A(b)(5) of the Act,\7\ which requires that the rules of the NASD
provide for the equitable allocation of reasonable dues, fees and other
charges among members and issuers and other persons using any facility
of system which the NASD operates or controls. The proposed rule change
removes discontinued Nasdaq Workstation I services from Nasdaq's
schedule of charges, thereby clarifying rule language related to fees.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o-3.
\7\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq believes that 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
Nasdaq neither solicited nor received written comments with respect
to the proposed rule change.
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)(iii) of the Act \8\ and Rule 19b-4(f)(3) thereunder.\9\ At
any time within 60 days after the filing of this proposed rule change,
the Commission may summarily abrogate the rule change if it appears to
the Commission that such action is necessary or appropriate in the
public interest, for the protection
[[Page 77123]]
of investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.
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. Copies of such filing also will be
available for inspection and copying at the principal office of the
NASD. All submissions should refer to File No. SR-NASD-2002-160 and
should be submitted by January 6, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-31593 Filed 12-13-02; 8:45 am]
BILLING CODE 8010-01-P