[Federal Register: December 3, 2007 (Volume 72, Number 231)]
[Notices]
[Page 67989-67990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03de07-124]
[[Page 67989]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56841; File No. SR-NASDAQ-2007-089]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Members Using the Nasdaq Market Center
November 27, 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 October 1, 2007, The NASDAQ Stock Market LLC (``Nasdaq'') 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 substantially prepared by the Exchange. The Exchange
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the
Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders it 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).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify pricing for Nasdaq members using the
Nasdaq Market Center. Nasdaq will implement this proposed rule change
on November 1, 2007. The text of the proposed rule change is available
at the Exchange's Web site, http://www.nasdaq.complinet.com, the Exchange and
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
Effective November 1, 2007, Nasdaq is implementing changes to its
fees for routing to the New York Stock Exchange (``NYSE'') that reflect
recently announced changes to order execution fees at that venue.
Specifically, NYSE has eliminated a transaction fee of $0.0004 per
share on ``at the opening'' and ``at the opening only'' orders in
equity securities (excluding exchange-traded funds).\5\ Similarly,
Nasdaq is eliminating the $0.0004 fee it charges to members when their
orders are routed to NYSE and execute in the NYSE opening process as
``at the opening'' or ``at the opening only'' orders.
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\5\ See Securities Exchange Act Release No. 56740 (November 5,
2007), 72 FR 63636 (November 9, 2007) (SR-NYSE-2007-100).
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In addition, effective October 1, 2007, NYSE implemented a fee of
$0.0004 per share for odd lot transactions (including the odd lot
portions of partial round lots).\6\ At that time, Nasdaq did not
implement a routing fee that specifically distinguished these
transactions from other transactions executed at NYSE. Nasdaq is now
implementing such a fee at the same $0.0004 per share level as the NYSE
execution fee, effective November 1, 2007.
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\6\ See Securities Exchange Act Release No. 56590 (October 1,
2007), 72 FR 57369 (October 9, 2007) (SR-NYSE-2007-88).
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2. Statutory Basis
Nasdaq 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 Nasdaq operates or controls. The change responds to fee changes
by NYSE to ensure that Nasdaq's fees for routing to NYSE are generally
consistent with charges that NYSE imposes on Nasdaq when it routes
orders to it.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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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, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is filed pursuant to Section
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
thereunder \10\ because it establishes or changes a due, fee, or other
charge applicable only to a member imposed by a self-regulatory
organization. Accordingly, the proposal is effective upon Commission
receipt of the filing. 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.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
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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 Number SR-NASDAQ-2007-089 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-2007-089. 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 (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments,
all written statements
[[Page 67990]]
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 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-2007-089 and should be submitted
on or before December 24, 2007.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-23316 Filed 11-30-07; 8:45 am]
BILLING CODE 8011-01-P