Federal Register / Vol. 72, No. 51 / Friday, March 16, 2007 / Notices 12647 

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

2 17 CFR 240.19b–4. 

3Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq found at 

http://www.complinet.com/nasdaq. 

4See Securities Exchange Act Release No. 46843 

(November 18, 2002), 67 FR 70471 (November 22, 

2002) (SR–NASD–2002–33). 

5See Securities Exchange Act Release No. 48581 

(October 1, 2003), 68 FR 57945 (October 7, 2003) 

(SR–NASD–2003–111). 

6See Securities Exchange Act Release No. 46534 

(September 23, 2002), 67 FR 61368 (September 30, 

2002) (SR–NASD–2002–86). 

7See Securities Exchange Act Release No. 51862 

(June 16, 2005), 70 FR 36426 (June 23, 2005) (SR–

NASD–2005–039). 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55445; File No. SR–

NASDAQ–2006–049] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Incorporate Full Depth of the Nasdaq 

Quoting of NYSE- and Amex-Listed 

Stocks into the TotalView Entitlement 

and Modify the User Fee Schedule for 

TotalView Data, and To Replace 

Nasdaq OpenView To Provide the 

Individual Nasdaq Market Participants’

Best Bids and Offers in NYSE- and 

Amex-Listed Stocks 

March 12, 2007. 

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 November 

16, 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 prepared 

substantially 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 Substance of 

the Proposed Rule Change 

Nasdaq proposes to incorporate full 

depth of the Nasdaq quoting of NYSEand Amex-listed stocks into the 

TotalView entitlement and modify the 

user fee schedule for TotalView data. 

Nasdaq also proposes to replace Nasdaq 

OpenView to provide the individual 

Nasdaq Market Participants’ best bids 

and offers in NYSE- and Amex-listed 

stocks. 

The text of the proposed rule change 

is available at Nasdaq, 

www.nasdaq.com, and the 

Commission’s Public Reference Room.3

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 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 currently has Commission 

approval to offer two data entitlements 

containing quote and order data—

commonly known as ‘‘depth of book’’

data—for Nasdaq-listed stocks and for 

NYSE/Amex-listed stocks trading on 

Nasdaq systems. The Commission 

approved both fees in 2002. First, 

Nasdaq received Commission approval 

to disseminate a ‘‘depth of book’’

product for Nasdaq stocks called 

TotalView.4 TotalView originally 

contained data representing all quotes 

and orders in Nasdaq stocks trading on 

Nasdaq’s SuperMontage system. The 

Commission approved an initial 

TotalView fee of $150 per user per 

month, and later approved Nasdaq’s 

proposal to reduce the fee to $70 per 

month for professional users and $14 

per month for non-professional users.5

Second, also in 2002, the Commission 

approved Nasdaq’s proposal to 

disseminate a full depth of book product 

for NYSE/Amex stocks. That product, 

called ‘‘OpenView,’’ contained all 

quotes and orders for NYSE/Amexlisted stocks in Nasdaq’s execution 

system.6 The Commission-approved fee 

for OpenView was $6 per user per 

month. Thus, market participants 

seeking to receive all Nasdaq market 

participant quote and order data for 

Nasdaq, NYSE, and Amex securities, 

paid two fees totaling $76 for 

professional users and $20 for nonprofessional users. 

Nasdaq has augmented the TotalView 

product many times while holding the 

Commission-approved fees constant. In 

2004 and 2005, Nasdaq added to 

TotalView all data from Nasdaq’s 

opening and closing crosses. In March 

of 2005, Nasdaq added to the TotalView 

entitlement a separate data feed 

disseminating depth of book data in an 

unprocessed, order-by-order format. 

Also in 2005, Nasdaq added a separate 

data feed containing depth of book data 

from its Brut Facility.7 By 2006, Nasdaq 

was disseminating via TotalView, depth 

of book data from the Nasdaq Market 

Center using multiple formats and 

multiple data feeds. 

Nasdaq proposes to integrate the 

entitlement for full depth from Nasdaq 

market participants quoting in Nasdaq 

stocks with the full depth from Nasdaq 

market participants quoting in NYSEand Amex-listed stocks, resulting in a 

single entitlement, to be called 

TotalView. This single entitlement 

would cost $75 per user per month for 

professional users and $14 per user per 

month for non-professional users, rather 

than the current total of $76 and $20 for 

TotalView and OpenView. In the case of 

non-professionals, there is no fee 

increase on account of this change, 

simply an increase in functionality. 

Users that previously subscribed to the 

TotalView and OpenView entitlements 

separately will receive a $1 per user per 

month fee decrease. Only those users 

that had one of the companion 

entitlements without the other would 

pay more under this proposal. 

Nasdaq is also proposing to distribute 

the best bid and offer from each Nasdaq 

market participant quoting in NYSEand Amex-listed stocks in real time. As 

set forth in proposed Rule 7023(c), 

Nasdaq proposes a $5 per user per 

month price for this product. Nasdaq 

expects that most users currently 

receiving full depth from Nasdaq in 

NYSE- and Amex-listed stocks will 

continue to do so via the TotalView 

entitlement. However, for any 

subscriber currently receiving only data 

for NYSE- and Amex-listed stocks (i.e., 

OpenView data), and not wishing to 

receive also data for Nasdaq-listed 

stocks, this option allows a user to 

continue paying at the same rate 

schedule for user-fees that they have in 

the past. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,8 in 

general, and with Section 6(b)(4) of the 

Act,9 in particular, in that the proposed 

unified fee for depth data for Nasdaq, 

NYSE and Amex stocks will result in a 

fee decrease of $1 from the current 

Commission-approved fees for that data. 

Nasdaq will continue to make NYSE 

and Amex best bid and offer data 

available separately at a reduced rate 

from the current fee for depth of book 


sroberts on PROD1PC70 with NOTICES
12648 Federal Register / Vol. 72, No. 51 / Friday, March 16, 2007 / Notices 

10Securities Exchange Act Release No. 43863 

(January 19, 2001), 66 FR 8020 (January 26, 2001) 

(SR–NASD–99–53). 

11Securities Exchange Act Release No. 54155 

(July 14, 2006), 71 FR 41291, 41298 (July 20, 2006) 

(SR–NASDAQ–2006–001). 

12 Id. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

data. Nasdaq believes that this proposed 

rule change will encourage the broader 

redistribution of the Nasdaq depth of 

book information, thus improving 

transparency and thereby benefiting the 

investing public. 

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. 

As a general matter, the Commission has 

long held the view that ‘‘competition 

and innovation are essential to the 

health of the securities markets. Indeed, 

competition is one of the hallmarks of 

the national market system.’’ 10 The 

Commission has also stated ‘‘that the 

notion of competition is inextricably 

tied with the notion of economic 

efficiency, and the Act seeks to 

encourage market behavior that 

promotes such efficiency, lower costs, 

and better service in the interest of 

investors and the general public. 11

The Commission goes on to state its 

belief ‘‘that the appropriate analysis to 

determine a proposal’s competitive 

impact is to weigh the proposal’s overall 

benefits and costs to competition based 

on the particular facts involved, such as 

examining whether the proposal would 

promote economically efficient 

execution of securities and fair 

competition between and among 

exchange markets and other market 

centers, as well as fair competition 

between the participants of a particular 

market.12

The proposed rule change is designed 

to increase transparency and the 

efficiency of executions by enabling 

vendors to provide additional market 

data in a cost efficient manner. There is 

significant competition for the provision 

of market data to broker-dealers and 

other market data consumers, as well as 

competition for the orders that generate 

the data. Nasdaq fully expects its 

competitors to quickly respond to this 

proposal as they have responded to 

other Nasdaq data products in the past. 

Moreover, market forces have shaped 

the market data fees that Nasdaq has 

charged for this product in the past and 

will continue to shape those fees in the 

future. As noted above, the Commission 

originally approved a fee of $150 for 

TotalView. Nasdaq lowered that fee to 

$70 and $14 in response to the lack of 

demand by vendors and users. Vendors 

simply will only utilize the service 

unless and until they conclude that it is 

economically beneficial to them and to 

their users. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

A. By order approve such proposed 

rule change, or 

B. Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 

No. SR–NASDAQ–2006–049 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2006–049. 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 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–2006–049 and 

should be submitted on or before April 

6, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4811 Filed 3–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55444; File No. SR–

NASDAQ–2007–006] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Establish Daily Share Volume Service 

and Fees for the Service 

March 12, 2007. 

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 February 

7, 2007, 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 Substance of 

the Proposed Rule Change 

Nasdaq proposes to establish fees to 

make Nasdaq Daily Share Volume 


sroberts on PROD1PC70 with NOTICES