[Federal Register: January 25, 2007 (Volume 72, Number 16)]
[Notices]
[Page 3452-3453]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ja07-87]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55137; File No. SR-NASDAQ-2006-068]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Pricing for Nasdaq Members Using the Nasdaq Market Center
January 19, 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 December 28, 2006, The NASDAQ Stock Market LLC (``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 substantially prepared by Nasdaq. Nasdaq has filed the
proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(2) thereunder,\4\ which renders the proposal 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 the pricing for its members using the
Nasdaq Market Center. Nasdaq proposes to implement the rule change on
January 2, 2007. The text of the proposed rule change is available at
Nasdaq, the Commission's Public Reference Room, and http://nasdaq.complinet.com/file_store/pdf/rulebooks/SR-NASDAQ-2006-068.pdf.
\5\
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\5\ Changes to the text of the proposed rule change are marked
to the rule text that appears in the electronic Nasdaq Manual found
at nasdaq.complinet.com/nasdaq/display/index.html, as further
proposed to be amended by Securities Exchange Act Release No. 55042
(Jan. 4, 2007), 72 FR 1569 (Jan. 12, 2007) (SR-NASDAQ-2006-055).
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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
This filing adopts a simplified pricing schedule for trading
Nasdaq-listed securities through the Nasdaq Market Center. As is
currently the case, the fee schedule reflects the volume of a member's
use of the Nasdaq Market Center and also the ITS/CAES and Inet systems
operated by Nasdaq and its affiliates as facilities of NASD, in
determining applicable fees.\6\ Order execution and routing fees will
be as follows:
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\6\ The consideration of volumes through ITS/CAES and Inet is a
function of the phased transition of Nasdaq from an operator of NASD
facilities to a separate national securities exchange. As such, NASD
fee schedules will be amended to remove all references to Nasdaq at
or shortly after the time when Nasdaq begins to trade non-Nasdaq
exchange-listed securities as an exchange. NASD is submitting a
comparable filing to establish fees for non-Nasdaq exchange-listed
securities, which likewise considers trading volumes through the
Nasdaq Market Center. See File No. SR-NASD-2006-137.
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$0.0027 per share executed for market participants that
(i) Add more than 30 million shares of liquidity per day during the
month and route or remove more than 50 million shares of liquidity per
day during the month, or (ii) add more than 20 million shares of
liquidity per day during the month and route or remove more than 60
million share of liquidity per day during the month;
$0.0028 per share executed for market participants that
add more than 20 million shares of liquidity per day during the month
and route or remove more than 35 million shares of liquidity during the
month;
$0.003 per share executed for other market participants;
$0.003 per share executed for routed orders that do not
attempt to execute in the Nasdaq Market Center prior to routing;
A liquidity provider credit of $0.0025 per share executed
for market participants adding more than 30 million shares of liquidity
per day during the month, and a credit of $0.002 for other market
participants; and
As is currently the case for Nasdaq-listed securities, a
fee of 0.1% of total transaction cost, and no liquidity provider
credit, for executions against quotes/orders in the Nasdaq Market
Center at less than $1.00 per share.
The proposed rule change also updates the text of Rule 7018 by
replacing references to the ``Nasdaq Facilities'' with the term
``Nasdaq Market Center'' to reflect Nasdaq system integration, and by
deleting certain obsolete references to Brut and Inet.
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
Sections 6(b)(4) of the Act,\8\ in particular, in that the proposal
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities. Nasdaq believes that the fees are reasonably allocated
among members based on their usage of the trading systems operated by
Nasdaq, and are generally consistent with fees charged by other market
centers for comparable services.
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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.
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 proposed rule change is subject 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 the 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
[[Page 3453]]
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-2006-068 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-2006-068.
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 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 the
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-2006-068 and should be submitted on or before
February 15, 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. E7-1105 Filed 1-24-07; 8:45 am]
BILLING CODE 8011-01-P