[Federal Register: March 5, 2007 (Volume 72, Number 42)]
[Notices]
[Page 9805-9807]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05mr07-89]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55355; File No. SR-NASDAQ-2007-007]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Technical and Conforming Changes to Nasdaq's 7000 Series
Rules
February 26, 2007.
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 February 9, 2007, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been substantially prepared by Nasdaq. Nasdaq has designated this
proposal as non-controversial under Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed rule
change effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\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)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to reflect in the Rule 7000 Series of Nasdaq's
rules certain changes made to the Rule 7000 Series of the rules of the
National Association of Securities Dealers, Inc. (``NASD'') in recent
months with respect to systems operated by Nasdaq and its affiliates
under NASD rules, and to make other conforming changes to reflect
Nasdaq commencing operations as an exchange for trading non-Nasdaq
listed securities on February 12, 2007. Nasdaq proposed to implement
the proposed rule change on February 12, 2007.
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in brackets.
7013. Consolidated Quotation Service and Exchange-Listed Securities
Transaction Credit.
(a) No change.
(b) Nasdaq members that trade securities listed on the NYSE (``Tape
A'') and Amex (``Tape B'') through Nasdaq may receive from Nasdaq
transaction credits based on the number of transactions attributed to
them. A transaction is attributed to a member if the transaction is
executed through [CAES, ITS or Nasdaq's Brut Facility] the Nasdaq
Market Center, and the member acts as liquidity provider (i.e., the
member sells in response to a buy order or buys in response to a sell
order). A Nasdaq member may earn credits from one or both pools
maintained by Nasdaq, each pool representing 50% of the revenue paid by
the Consolidated Tape Association to Nasdaq for each of Tape A and Tape
B transactions after deducting the amount that Nasdaq pays to the
Consolidated Tape Association for capacity usage. A Nasdaq member may
earn credits from the pools according to the member's pro rata share of
transactions attributed to Nasdaq members in each of Tape A and Tape B
for each calendar quarter. Liquidity providers executing transactions
in Tape B securities through the Nasdaq Market Center will receive
credits with respect to such transactions on an estimated monthly
basis; all other credits under this rule will be paid on a quarterly
basis.
7014. [Computer Assisted Execution Service] Nasdaq Market Center for
Non-Nasdaq Securities.
The charges to be paid by members [receiving the Computer Assisted
Execution Service (CAES)] using the Nasdaq Market Center for trading
non-
[[Page 9806]]
Nasdaq exchange-listed securities through the Nasdaq Market Center
shall consist of a fixed service charge of $200 per member per month,
transaction charges as provided in Nasdaq Rule 7018 and equipment-
related charges as provided elsewhere in the Rule 7000 Series.
7015. Access Services.
(a)-(c) No change.
(d) New Nasdaq Workstation.
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Nasdaq Workstation Trader.............. $475 per user per month
(including data entitlement
package).
Nasdaq Workstation Post Trade.......... See Rule 7015[(d)](e).
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(e)-(g) 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 is modifying its 7000 Series Rules to reflect certain
changes made to the Rule 7000 Series of the rules of the NASD in recent
months with respect to systems operated by Nasdaq and its affiliates
under NASD rules, and to make other conforming changes to reflect
Nasdaq commencing operations as an exchange for trading non-Nasdaq
listed securities on February 12, 2007.
Specifically, Nasdaq is:
Amending Nasdaq Rule 7013 to reflect changes to NASD Rule
7010(c)(2) by SR-NASD-2006-067 \5\ and to update system names to
reflect Nasdaq's operation as an exchange.
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\5\ Securities Exchange Act Release No. 54015 (June 19, 2006),
71 FR 36369 (June 26, 2006) (SR-NASD-2006-067).
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Amending Nasdaq Rule 7014 to update system names to
reflect Nasdaq's operation as an exchange.
Amending Nasdaq Rule 7015 to correct a cross-reference in
the rule.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\6\ in general, and with
Sections 6(b)(4) and (5) of the Act,\7\ in particular, in that the
proposal 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 Nasdaq operates or controls, and 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.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4) and (5).
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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.
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 (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days from the date on which
it was filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and
subparagraph (f)(6)(iii) of Rule 19b-4 thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to waive the operative
delay if such action is consistent with the protection of investors and
the public interest. Nasdaq has requested that the Commission waive the
five-day notice requirement and 30-day operative delay and designate
the proposed rule change immediately operative.
The Commission is exercising its authority to waive the five-day
notice requirement and believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. The Commission notes that the rule changes proposed herein
are intended to conform to changes which have either recently been made
effective as changes to NASD rules or are merely technical in nature.
Thus, Nasdaq's proposal raises no new issues of regulatory concern.
Moreover, waiving the operative delay will allow Nasdaq to implement
the changes immediately in conjunction with Nasdaq beginning to operate
as a national securities exchange for trading non-Nasdaq securities.
Therefore, the Commission has determined to waive both the five-day
notice requirement and the 30-day delay and allow the proposed rule
change to become operative upon filing.\10\
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\10\ For purposes only of waiving the operative delay of this
proposal, the Commission notes that it has considered the proposed
rule's impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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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 (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File
[[Page 9807]]
No. SR-NASDAQ-2007-007 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2007-007. 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 Commissions Internet Web site (http://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. Copies of such
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-NASDAQ-2007-007 and should be submitted on or before
March 26, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3751 Filed 3-2-07; 8:45 am]
BILLING CODE 8010-01-P