[Federal Register: May 12, 2004 (Volume 69, Number 92)]
[Notices]
[Page 26421-26422]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my04-87]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-49663; File No. SR-NASD-2004-036]
Self-Regulatory Organizations; Order Granting Approval of a
Proposed Rule Change by the National Association of Securities Dealers,
Inc. To Revise and Update the Fee Schedule for OTC Bulletin Board
Historical Trading Activity Reports
May 6, 2004.
I. Introduction
On March 1, 2004, 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''), 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 revise and update the fee schedule for the OTC
Bulletin Board (``OTCBB'') historical trading activity reports. The
proposal was published for comment in the Federal Register on April 1,
2004.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 49486 (March 26,
2004), 69 FR 17254.
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II. Description of Proposed Rule Change
The proposed rule change would revise the fee schedule for the
OTCBB historical trading activity reports that are available through
the OTCBB website (``OTCBB.com''). The proposal would establish that
the fees that Nasdaq would charge for the Issues Summary Statistics
reports and the Intra-Day Quote and Intra-Day Time and Sales Data
reports of OTCBB securities are identical to the fees assessed for
similar reports for Nasdaq securities that are available through the
website for Nasdaq traders (``NasdaqTrader.com''). In addition, the
proposed rule change would establish a new fee for an up-to-date
directory listing the contact information of all OTCBB issuers.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the Act and the rules and regulations thereunder applicable to a
national securities association.\4\ Specifically, the Commission finds
that the proposal is consistent with the requirements of Section
15A(b)(5) and (b)(6) of the Act.\5\ Section 15A(b)(5) requires that the
rules of a registered national securities association provide 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 association operates or controls. Section 15A(b)(6) requires,
among other things, that the rules of national securities association
not be designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\4\ In approving the proposal, the Commission has considered the
rule's impact on efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78o(b)(5) and (b)(6).
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The Commission notes that the pricing structure for the historical
trading activity reports available through OTCBB.com for OTCBB
securities is identical to the pricing structure for similar reports
available through NasdaqTrader.com for Nasdaq securities. The
Commission has previously determined that the fee structure for these
NasdaqTrader.com
[[Page 26422]]
reports is consistent with the Act.\6\ The Commission believes that a
similar fee structure applied to historical data for OTCBB securities
is also consistent with the Act. Finally, the Commission believes that
the fee that Nasdaq proposes to charge for the All OTCBB Issuer
Directory is consistent with the Act.
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\6\ See Securities Exchange Act Release No. 45102 (November 26,
2001), 67 FR 59830 (November 30, 2001) (Order approving SR-NASD-
2001-59).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-NASD-2004-036) be, and hereby
is, approved.
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\7\ 15 U.S.C. 78s(b)(2).
\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-10759 Filed 5-11-04; 8:45 am]
BILLING CODE 8010-01-P