[Federal Register: October 4, 2005 (Volume 70, Number 191)]
[Notices]
[Page 57908-57909]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04oc05-108]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52517; File No. SR-NASD-2005-059]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Approving Proposed Rule Change and Amendment No. 1
Thereto, and Notice of Filing and Order Granting Accelerated Approval
to Amendment No. 2 to the Proposed Rule Change, To Amend NASD Rule 7090
To Modify the Annual Listing and Administrative Fees
September 27, 2005.
I. Introduction
On May 10, 2005, 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 amend NASD Rule 7090 (``Mutual Fund Quotation
Service'') to modify the annual listing and administrative fees. On
June 8, 2005, Nasdaq filed Amendment No. 1 to the proposed rule change.
The proposed rule change, as modified by Amendment No. 1, was published
for comment in the Federal Register on June 21, 2005.\3\ The Commission
received one comment on the proposal.\4\ On September 14, 2005, Nasdaq
filed Amendment No. 2, which incorporated its response to the
comment.\5\ This order approves the proposed rule change, as modified
by Amendment No. 1, and provides notice of filing and grants
accelerated approval of Amendment No. 2.
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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. 51836 (June 13,
2005), 70 FR 35753 (June 21, 2005) (the ``Release'').
\4\ See letter from Peter G. Salmon, Director--Operations &
Technology, Investment Company Institute, to Jonathan G. Katz,
Secretary, Commission, dated July 12, 2005 (``ICI Letter'').
\5\ See Amendment No. 2 Amendment No. 2 changed the proposed
implementation date from July 1, 2005 to the later date of either
January 1, 2006 or on the date all of the proposed enhancements to
the Mutual Fund Quotation Service (``MFQS'') have been implemented.
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II. Summary of Comments
The Commission received one comment letter on the proposed rule
change.\6\ The commenter stated that it supports the planned
enhancements to the MFQS.\7\ In addition, the commenter does not object
to the proposed fee increases, provided Nasdaq implements the planned
enhancements on the schedule outlined in the Release.\8\ The commenter
is concerned that changes in priorities and other factors or events
could delay the implementation of the planned enhancements to the
MFQS.\9\ However, the commenter urged that the proposed fee increases
only be assessed once the planned enhancements are implemented.\10\ The
commenter does not believe that its recommendation that the proposed
fee increases be assessed once the planned enhancements are implemented
would impede the completion of the planned enhancements.\11\
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\6\ See footnote 4, supra.
\7\ See ICI Letter at 1.
\8\ Id. at 2.
\9\ Id.
\10\ Id.
\11\ Id.
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III. Nasdaq Response to Comments
In response to the comment letter, Nasdaq amended the filing.\12\
In response to the commenter's request that the proposed fee increases
only be assessed once the planned enhancements are implemented, Nasdaq
amended the implementation date of the changes proposed in Amendment
No. 1. Specifically, Amendment No. 2 addresses the commenter's concern
by stating that the proposed rule change will be implemented on the
later date of either January 1, 2006 or on the date all of the proposed
enhancements to the MFQS system have been implemented.
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\12\ See footnote 5, supra.
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IV. Discussion and Commission Findings
After careful review of the proposal, the comment letter, and
Nazdaq's response, the Commission finds that the proposed rule change,
as amended, is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a self-regulatory
organization.\13\ In particular, the Commission believes that the
proposed rule change, as amended, is consistent with Section 15A(b)(5)
of the Act,\14\ which requires, among other things, that the rules of
the 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 NASD operates or controls.
The Commission notes that the Nasdaq proposal, as amended, will not be
implemented until the later of either
[[Page 57909]]
January 1, 2006 or on the date all of the proposed enhancements to the
MFQS system have been implemented. The Commission believes that this
change to the proposal sufficiently addresses the concerns expressed by
the commenter.
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\13\ In approving the proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. 15 U.S.C. 78s(f).
\14\ 15 U.S.C. 78o3(b)(5).
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The Commissioner finds good cause for approving proposed Amendment
No. 2 before the 30th day after the date of publication of notice of
filing thereof in the Federal Register. Nasdaq filed Amendment No. 2 in
response to comments it received after publication of the notice of
filing of the proposed rule change, to address the commenter's
concerns. Because Amendment No. 2 is responsive to the commenter's
concerns, the Commission finds good cause for accelerating approval of
Amendment No. 2.
V. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning Amendment No. 2, including whether Amendment No. 2
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-NASD-2005-059 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-NASD-2005-059. 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 such
filing also will be available for inspection and copying at the
principal office of the NASD. 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-NASD-2005-059 and should be submitted on or before
October 25, 2005.
VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\15\ that the proposed rule change (File No. SR-NASD 2005-059), as
modified by Amendment No. 1, thereto, be, and it hereby is, approved
and that Amendment No. 2 be, and hereby is, approved on an accelerated
basis.
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\15\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 05-19808 Filed 10-3-05; 8:45 am]
BILLING CODE 8010-01-M