[Federal Register: January 29, 2003 (Volume 68, Number 19)]
[Notices]
[Page 4524-4525]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ja03-106]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47236; File No. SR-NASD-2003-06]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc. to Delay the Implementation of Fee Changes for
the Nasdaq Testing Facility
January 23, 2003.
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 January 17, 2003, 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 items have been prepared by Nasdaq. Nasdaq filed
the proposal pursuant to section 19(b)(3)(A)(i) of the Act,\3\ and rule
19b-4(f)(1) \4\ thereunder, as one constituting a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, which renders the
proposal effective upon filing with the Commission. The
[[Page 4525]]
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)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq has delayed until January 1, 2003, the implementation of
certain fee changes for the Nasdaq Testing Facility (``NTF'')
established by SR-NASD-2002-72 \5\ and SR-NASD-2002-73.\6\ There is no
proposed rule language.
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 46065 (June 12, 2002),
67 FR 41556 (June 18, 2002)(SR-NASD-2002-72)(immediately effective
fees for members).
\6\ Securities Exchange Act Release No. 46234 (July 19, 2002),
67 FR 48693 (July 25, 2002)(SR-NASD-2002-73)(approval of fees for
non-members).
---------------------------------------------------------------------------
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 its proposal and discussed any
comments it received regarding the proposal. 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
The purpose of the proposed rule change is to notify the Commission
and other interested parties of the delay until January 1, 2003, of the
implementation of certain fee changes for the NTF. The fee changes were
established by SR-NASD-2002-72 and SR-NASD-2002-73. In those filings,
Nasdaq, among other things, amended rule 7050(d)(1) to apply the hourly
testing fees for use of the NTF to testing of Nasdaq Workstation II
(``NWII'') application programming interface (``API'') and market data
vendor feeds. The hourly testing fees had formerly applied only to
testing of computer-to-computer interfaces (``CTCI'').\7\ Under the
filings, the fee change was effective and to be implemented upon filing
for members and upon Commission approval for non-members. However,
Nasdaq delayed implementation of the testing fees for NWII API because
of delays in the availability of a system that could accurately record
the time spent by a particular NTF user in testing NWII API. This delay
has now been addressed, and Nasdaq implemented the fee for NWII API
testing as of January 1, 2003. Prior to that time, Nasdaq has made the
NTF available for testing of NWII API without charge, and Nasdaq has
notified users of the NTF as to the implementation of the testing fees.
All other aspects of SR-NASD-2002-72 and SR-NASD-2002-73 were
implemented as of the effective dates of those filings.
---------------------------------------------------------------------------
\7\ Prior to the amendments, the rule had also made reference to
testing of ``digital interface (DIS/CHPS),'' a technology that is
not currently in use by Nasdaq. These references were deleted.
---------------------------------------------------------------------------
Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of section 15A of the Act,\8\ in general, and with
section 15A(b)(5) of the Act,\9\ 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 NASD operates or controls.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78o-3.
\9\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement of 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
The foregoing proposal has become effective pursuant to section
19(b)(3)(A)(i) of the Act,\10\ and rule 19b-4(f)(1) \11\ thereunder, in
that it constitutes a stated policy, practice, or interpretation with
respect to the meaning, administration, or enforcement of an existing
rule. 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal 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 will also be available for
inspection and copying at the principal office of the NASD. All
submissions should refer to file number SR-NASD-2003-06 and should be
submitted by February 19, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-2016 Filed 1-28-03; 8:45 am]
BILLING CODE 8010-01-P