69502 Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See http://www.nasdaqtrader.com/ 

Trader.aspx?id=TestingFacility for a description of 

the Testing Facility. 4 15 U.S.C. 78f(b)(4). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63258; File No. SR– 

NASDAQ–2010–145] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Fees Assessed for Use of the Testing 

Facility 

November 5, 2010. 

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 

29, 2010, 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 

prepared by NASDAQ. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

NASDAQ proposes to amend the fees 

assessed for use of the Testing Facility. 

NASDAQ will implement the proposed 

rule change on November 1, 2010. 

The text of the proposed rule change 

is below. Proposed new language is 

italicized; proposed deletions are in 

brackets. 

7030. Other Services 

(a)–(c) No change. 

(d) Nasdaq Testing Facility 

(1) The following fees are assessed for 

access to the Nasdaq Testing Facility: 

(A) Subscribers that conduct tests of 

the[ir] [Nasdaq access protocols 

connection (which includes] computerto-computer interface (CTCI)[,] and the 

Financial Information Exchange (FIX) 

interface to ACT and ACES access 

protocols[, and Nasdaq Information 

Exchange (QIX) interface) or market data 

vendor feeds] through the Nasdaq 

Testing Facility (NTF) shall pay the 

following charges: 

$285/hour—For Active Connection 

testing [using current Nasdaq access 

protocols] during the normal 

operating hours of the NTF; 

No Charge—For Idle Connection testing 

[using current Nasdaq access 

protocols]; 

$333/hour—For Active Connection 

testing [using current Nasdaq access 

protocols] at all times other than the 

normal operating hours of the NTF. 

(B) Subscribers that conduct tests of 

all Nasdaq access protocol connections 

not included in paragraph (A) above or 

of market data vendor feeds through the 

Nasdaq Testing Facility shall pay $300 

per port, per month. 

(2) No change. 

(3) The foregoing [hourly] fees shall 

not apply to [market data vendor feed 

testing, or] testing occasioned by: 

(A) New or enhanced services and/or 

software provided by Nasdaq; 

(B) Modifications to software and/or 

services initiated by Nasdaq in response 

to a contingency; or 

(C) Testing by a subscriber of a 

Nasdaq service that the subscriber has 

not used previously, except if more than 

30 days have elapsed since the 

subscriber commenced the testing of 

such Nasdaq service. 

(4)–(6) 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 proposes to amend the fees 

assessed for use of the Testing Facility.3

The Testing Facility provides 

subscribers with a virtual NASDAQ 

System test environment that closely 

approximates the production 

environment, on which they may test 

their automated systems that integrate 

with NASDAQ. Subscribers may test 

upcoming NASDAQ releases and 

product enhancements, as well as test 

software prior to implementation. 

Currently, NASDAQ assesses a fee of 

$285 per hour for active connection 

testing using current NASDAQ access 

protocols during the normal operating 

hours, and $333 per hour for such 

testing after hours. 

NASDAQ does not currently assess a 

fee for idle test ports. Subscribers often 

have test ports assigned to them through 

which no testing is conducted for 

extended periods, yet NASDAQ must 

maintain and constantly monitor these 

idle testing ports for purposes of billing 

under the current rule. For all but CTCI 

and FIX connections to ACT and ACES, 

which are structurally different than 

other connections, such monitoring 

represents a cost to NASDAQ with no 

off-setting fee. Further, subscribers have 

no incentive to notify NASDAQ when 

they have completed testing and no 

longer require a test port. Accordingly, 

NASDAQ is proposing to eliminate the 

current hourly fee structure and assess 

a flat fee of $300 per test port, per 

month for all but CTCI and FIX 

connections to ACT and ACES. This fee 

will cover the cost of maintaining these 

test ports and provide an incentive to 

firms to cancel test ports when they 

have completed testing. 

NASDAQ notes that it will continue 

to allow new subscribers and existing 

subscribers to test new services and 

modifications initiated by NASDAQ, 

and to test new services not previously 

accessed for the first 30 days at no cost 

pursuant to Rule 7030(d)(3). This 30-day 

fee waiver includes testing for 

subscribers that are accessing NASDAQ 

through a service bureau for the first 

time. Subscribers must cancel the test 

port prior to the expiration of the 30-day 

free period in order to avoid future 

charges for test ports under the new 

rule. In addition, current subscribers 

will be able to cancel their idle ports at 

no cost at any point during the first 

month that the fee is effective. Further, 

NASDAQ is eliminating the word 

‘‘hourly’’ from Rule 7030(d)(3), since the 

fees for the Testing Facility include both 

hourly and monthly fees. Last, 

NASDAQ is eliminating from Rule 

7030(d)(3) language concerning market 

data feed testing, since it is superfluous 

given that the rule already references 

fees that include such testing. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act 4 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 the 

NASDAQ operates or controls, and it 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The amended fee schedule applies to all 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 69503 

5 15 U.S.C. 78s(b)(3)(a)(ii). 

6 17 CFR 240.19b–4(f)(2). 7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

subscribers equally based on the 

number of test ports subscribed. This 

proposed charge would apply to both 

members that obtain test ports for direct 

access and non-member service bureaus 

that act as a conduit for orders entered 

by NASDAQ members that are their 

customers. The proposed fees will cover 

the costs associated with separately 

offering the service, responding to 

customer requests, configuring 

NASDAQ’s systems, programming to 

user specifications, and administering 

the service, among other things, and 

may provide NASDAQ with a profit to 

the extent costs are covered. NASDAQ 

believes that the proposed fee structure 

strikes a balance between covering these 

costs, and providing incentives to 

subscribers to make efficient use of Test 

Facility ports. 

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 Regarding 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 rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 5 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.6 At any time within 60 days 

of the filing of the proposed rule change, 

the Commission summarily may 

temporarily suspend 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 rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2010–145 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2010–145. 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 

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 Web site viewing and 

printing 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 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 

publicly available. All submissions 

should refer to File Number SR– 

NASDAQ–2010–145 and should be 

submitted on or before December 3, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28466 Filed 11–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63256; File No. SR–FINRA– 

2010–055] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Amend 

FINRA Rule 6140 (Other Trading 

Practices) 

November 5, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on October 

29, 2010, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 

prepared by FINRA. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to amend FINRA 

Rule 6140 to eliminate the provisions 

regarding the handling of stop orders, 

delete definitions relating to stop stock 

transactions and to relocate the 

definition of ‘‘initial public offering.’’ 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA and at 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, 

FINRA 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. FINRA 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

FINRA Rule 6140(h) (the ‘‘Rule’’) 

addresses the handling of stop orders in 

mstockstill on DSKH9S0YB1PROD with NOTICES