[Federal Register: October 2, 2006 (Volume 71, Number 190)]
[Notices]
[Page 58027-58029]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc06-137]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54501; File No. SR-NASDAQ-2006-026]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change as Amended Regarding Pricing for Non-Members Using the New
Nasdaq Workstation and Weblink ACT
September 25, 2006.
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 August 1, 2006, 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
prepared by Nasdaq. Nasdaq amended the proposed rule change on
September 20, 2006.\3\ The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons, and simultaneously granting accelerated approval of
the proposed rule change, as amended.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Amendment No. 1.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
This proposed rule change relates to the pricing for non-Nasdaq
members using Nasdaq's New Nasdaq Workstation (``NNW'') and Weblink ACT
products. The proposal will apply to these non-members the same changes
[[Page 58028]]
that Nasdaq is instituting for Nasdaq members in SR-NASDAQ-2006-025.
Nasdaq seeks to implement this proposed rule change retroactively as of
August 1, 2006. The text of the proposed rule change is available at
the Commission's Public Reference Room, at Nasdaq, and at http://www.nasdaq.com.
\4\
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\4\ Changes to the proposed rule text are marked to the rule
text that appears in the electronic Nasdaq Manual found at
http://www.complinet.com/nasd.com, as further amended on an immediately
effective basis by SR-NASDAQ-2006-024 and SR-NASDAQ-2006-025.
Because the NNW and Weblink ACT are also used with respect to the
quotation, execution, and trade reporting systems operated by The
Nasdaq Stock Market, Inc. (``Nasdaq Inc.'') with respect to non-
Nasdaq securities, Nasdaq Inc. is also filing this proposed rule
change as a modification to NASD Rule 7010(f). See SR-NASD-2006-095.
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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. The
text of these statements may be examined at the places specified in
Item III 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
In SR-NASDAQ-2006-025, Nasdaq amended Rule 7015 to change Nasdaq
member fees associated with its Web-based NNW and Weblink ACT products.
Since the NNW's inception as a replacement for the Nasdaq Workstation
II (``NWII'') last year, the fee for the NNW has been $435 per user per
month, plus $90 per month for data feeds included with the NNW, for a
total cost of $525 per user per month. In SR-NASDAQ-2006-025, Nasdaq
reduced the fee to $475 per user per month, including the cost of the
data feeds provided with the NNW. The change is designed to enhance the
competitiveness of the NNW in contrast to front-end applications
provided by broker-dealers and service bureaus, and, as discussed
below, also reflects decreasing demand for the product.
Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is
a Web-based application used for submission of trade reports. As such,
as the Nasdaq Exchange begins to operate as a national securities
exchange, Weblink ACT provides basic front-end access to the Trade
Reporting Facility (``TRF'') operated by Nasdaq and the NASD,\5\ as
well as access to ACT functionality still offered by Nasdaq Inc. under
authority delegated by NASD.
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\5\ Nasdaq expects that, consistent with current practice, most
NASD members seeking access to the TRF would use a proprietary
front-end system developed by the broker-dealer or a product offered
by a service bureau. Weblink ACT is designed as a basic front-end
system for low volume users.
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Since the introduction of NNW and Weblink ACT, a number of former
NWII users have opted to move to Weblink ACT rather than NNW,
reflecting a desire to use these Web-based products exclusively for
trade reporting, rather than active trading. Accordingly, in SR-NASDAQ-
2006-025, Nasdaq increased the comparatively low fees for Weblink ACT
to ensure that, as between NNW and Weblink ACT, fees are allocated
appropriately to allow recovery of Nasdaq's costs. Specifically, the
current $150 fee for Weblink ACT users that report a daily average of
20 or fewer trades a month is being raised to $200, while the $300 fee
for higher volume users is being increased to $375.
Nasdaq is submitting this filing to apply the foregoing changes to
non-Nasdaq members using the NNW and Weblink ACT. These non-members are
comprised primarily of service bureaus, while in the case of Weblink
ACT, they would also include NASD members that are not members of
Nasdaq but that submit trade reports to the TRF.
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 Section
6(b)(4) of the Act,\7\ 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 proposed rule change applies to
non-members that use NNW and Weblink ACT a fee change that is being
implemented for Nasdaq members. Accordingly, the proposed rule change
promotes an equitable allocation of fees between members and non-
members using these services.
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\6\ 15 U.S.C. 78f.
\7\ 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 were neither solicited nor received.
III. 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-2006-026 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-2006-026. 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 offices 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-2006-026 and should be submitted on or before
October 23, 2006.
[[Page 58029]]
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to an exchange.\8\ Specifically, the Commission
believes that the proposed rule change is consistent with Section
6(b)(4) of the Act,\9\ which requires that the rules of an exchange
provide for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facilities or system which it operates or controls.
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\8\ In approving the proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. See 15 U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(4).
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The Commission notes that this proposal would permit the schedule
for non-Nasdaq members to mirror the schedule applicable to Nasdaq
members that became effective on August 1, 2006, pursuant to SR-NASDAQ-
2006-025.
The Commission finds good cause for approving the proposed rule
change prior to the 30th day after the date of publication of the
notice thereof in the Federal Register. The proposed fees for non-
Nasdaq members are identical to those in SR-NASDAQ-2006-025, which
implemented those fees for Nasdaq members and which became effective as
of August 1, 2006. The Commission notes that the instant proposed rule
change will promote consistency in Nasdaq's fee schedule by applying
simultaneously the same pricing schedule for Nasdaq members and non-
Nasdaq members alike. Therefore, the Commission finds that there is
good cause, consistent with Section 19(b)(2) of the Act, to approve the
proposed rule change, as amended, on an accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-NASDAQ-2006-026), as amended, be, and
hereby is, approved on an accelerated basis.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
[FR Doc. E6-16117 Filed 9-29-06; 8:45 am]
BILLING CODE 8010-01-P