13330 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

6 17 CFR 200.30–3(a)(12). 

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). 

5See File No. SR–NYSE–2007–18 (February 22, 

2007). 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

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 publicly available. All 

submissions should refer to File 

Number SR–NASDAQ–2006–064 and 

should be submitted on or before April 

11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5088 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55461; File No. SR–

NASDAQ–2007–017] 

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 

March 13, 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 February 

28, 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 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify the 

pricing for Nasdaq members using the 

Nasdaq Market Center. Nasdaq will 

implement this rule change on March 1, 

2007. The text of the proposed rule 

change is available at Nasdaq, the 

Commission’s Public Reference Room, 

and http://www.nasdaq.com. 

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 modifies the pricing 

schedule for trading securities through 

the Nasdaq Market Center. The changes 

reflect (i) The increase in volumes 

traded through the Nasdaq Market 

Center as a result of Nasdaq beginning 

to trade non-Nasdaq exchange-listed 

securities through the Nasdaq Market 

Center as of February 12, 2007, and (ii) 

responses to the competitive 

environment in which Nasdaq operates. 

Specifically, because much of the 

volume in non-Nasdaq securities that 

had formerly traded through the NASD 

ITS/CAES System has moved to the 

Nasdaq Market Center, the proposed 

rule change deletes language under 

which Nasdaq considered a member’s 

volume in ITS/CAES in determining its 

fees for using the Nasdaq Market Center. 

Similarly, Nasdaq is modifying its 

existing charge for reporting 

transactions executed through the 

Nasdaq Market Center to reflect the 

increase in the volume of the Nasdaq 

Market Center occasioned by its 

beginning to trade non-Nasdaq 

securities. Currently, the $0.029 per side 

fee applies to members with an average 

daily volume during a month of less 

than 10,000 transaction reports; the 

threshold is being raised to 15,000 

transaction reports. 

Nasdaq is also modifying its fees for 

routing to the New York Stock Exchange 

LLC (‘‘NYSE’’) to reflect an NYSE 

proposal to charge $0.0025 per share for 

routing orders to other markets.5 When 

Nasdaq routes an order to NYSE and is 

charged this fee by NYSE, Nasdaq 

proposes to pass the fee on to its 

members on a direct basis. Finally, in 

order to ensure that Nasdaq’s overall 

fees remain competitive, Nasdaq is 

lowering its lowest fee for removing 

liquidity and/or routing from $0.0027 

per share executed to $0.0026. The fee 

is charged to members with an average 

daily volume through the Nasdaq 

Market Center in all securities during 

the month of (i) More than 35 million 

shares of liquidity provided, and (ii) 

more than 55 million shares of liquidity 

accessed and/or routed; or members 

with an average daily volume through 

the Nasdaq Market Center in all 

securities during the month of (i) More 

than 25 million shares of liquidity 

provided, and (ii) more than 65 million 

shares of liquidity accessed and/or 

routed. Members with lower volumes 

pay $0.0028 or $0.003 per share 

executed, depending on their volume 

levels. 

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 Sections 6(b)(4) of the 

Act,7 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 any facility or 

system which Nasdaq operates or 

controls. Nasdaq believes that the fees 

reflect the fact that Nasdaq has begun to 

trade non-Nasdaq exchange-listed 

securities through the Nasdaq Market 

Center, and also reflect fee changes by 

Nasdaq’s competitors and the overall 

competitive environment in which 

Nasdaq operates. 

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. 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 13331 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

4The Commission has modified the text of the 

summaries prepared by NSCC. 

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 8 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 9 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. 

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–2007–017 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–2007–017. 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–2007–017 and 

should be submitted on or before April 

11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5089 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55478; File No. SR–NSCC–

2007–03] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule To Make Technical and Updating 

Changes to Its Reconfirmation and 

Pricing Service 

March 15, 2007. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

January 26, 2007, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which items 

have been prepared primarily by NSCC. 

NSCC filed the proposal pursuant to 

Section 19(b)(3)(A)(iii) of the Act 2 and 

Rule 19b–4(f)(4) 3 thereunder so that the 

proposal was effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the rule change from 

interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the rule change is to 

make technical and updating changes to 

its Reconfirmation and Pricing Service 

(‘‘RECAPS’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NSCC 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. NSCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

RECAPS is a mandated service for all 

full-service NSCC members that 

reconfirms and reprices members’ fails 

in RECAP-eligible securities that 

represent positions that are currently 

failing outside of NSCC’s Continuous 

Net Settlement (‘‘CNS’’) system. It thus 

provides a mechanism for reducing 

outstanding non-CNS member fails. The 

proposed revisions to the procedures 

reflect enhancements to the service, 

confirming processing changes with 

current processes, and deletion of 

obsolete reports. 

RECAPS is currently offered 

quarterly. The processing cycle begins 

on a Tuesday and ends with 

successfully matched trades settling the 

following Tuesday. On the first Tuesday 

of the processing cycle, members submit 

CUSIP files for fails designated for 

processing through the service. The data 

on these files is used to obtain current 

prices for the designated securities. On 

Friday, members submit eligible aged 

fails to NSCC until a designated cut-off 

time. On Saturday, NSCC distributes 

RECAPS contract sheets, RECAPS CNS 

and Non-CNS Compared Summaries, 

Balance Orders (for matched 

transactions in Balance Order 

securities), and RECAPS CNS Projection 

Reports and Advisory Listings. On 

Monday, members take action on all 

unmatched items. On Tuesday, the final 

day of the RECAPS cycle, all matched 

fails are scheduled to settle. 

The process enhancements eliminate 

the need for submission of CUSIP files 

on Tuesday since current price 

information can be obtained on Friday 

when members submit their fails for 

reconfirming and pricing. In addition, 


jlentini on PROD1PC65 with NOTICES