19562 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 

5Securities Exchange Act Release No. 53534 

(March 21, 2006), 71 FR 15781 (March 29, 2006) 

[File No. SR–FICC–2005–18], as amended by 

Securities Exchange Act Release No. 55217 (January 

31, 2007), 72 FR 5774 (February 7, 2007) [File No. 

SR–FICC–2006–16]. 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78q–1(b)(3)(F). 

8 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

9 15 U.S.C. 78s(b)(2). 

10 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)(6). 

or new securities collateral information 

is received between 12:30 p.m. and 1 

p.m. on a good faith basis only. In 

situations where FICC has been notified 

of a substitution but the new securities 

collateral has not yet been reported to 

FICC, FICC will continue to employ the 

risk management measures that were 

instituted by FICC in prior rule filings.5

FICC believes that imposition of the 

final deadline will encourage members 

to submit their repo collateral 

substitution notification requests and 

required information on a timely basis 

and will alleviate the operational 

burdens associated with late receipt of 

this information. 

The proposed rule change is 

consistent with Section 17A of the Act,6

as amended, because it encourages 

members to submit repo collateral 

substitution requests and required 

information associated therewith on a 

timely basis. As such, it will support the 

prompt and accurate clearance and 

settlement of securities transactions. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

FICC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. FICC will notify 

the Commission of any written 

comments received by FICC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Section 17A(b)(3)(F) 7 of the Act 

requires that the rules of a clearing 

agency be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions. 

The Commission finds that FICC’s 

proposed rule change is consistent with 

FICC’s obligation under the Act because 

it encourages FICC’s members to submit 

repo collateral substitution requests and 

required information associated 

therewith on a timely basis.8

The Commission finds good cause for 

approving the proposed rule change 

prior to the thirtieth day after the date 

of publication of notice of filing in the 

Federal Register because doing so will 

allow FICC to implement the proposed 

rule change in April in accordance with 

its system change implementation 

schedule. 

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–FICC–2007–03 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–FICC–2007–03. 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 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filings also 

will be available for inspection and 

copying at the principal office of FICC 

and on FICC’s Web site at http:// 

www.ficc.com/commondocs/rule.filings/ 

rule.filing.07–03.pdf. 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–FICC–

2007–03 and should be submitted on or 

before May 9, 2007. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (File No. SR–

FICC–2007–03) be and hereby is 

approved. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7322 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55608; File No. SR–

NASDAQ–2007–032] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Lower Fees 

for Distributors of Certain Market Data 

From the Nasdaq Market Center 

April 10, 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 March 30, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by Nasdaq. The 

Exchange has filed the proposal as a 

‘‘non-controversial’’ rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it 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 is proposing to modify 

Nasdaq Rule 7019(b) to lower the 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19563 

5The proposed rule change does not alter the 

Monthly Internal Distributor Fee and the Monthly 

External Distributor Fee for TotalView. 

6See Securities Exchange Act Release No. 55443 

(March 12, 2007), 72 FR 13325 (March 21, 2007). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has requested that the 

Commission waive the 5-day pre-filing notice 

Continued 

distributor fees that are applicable to 

distributors of Nasdaq TotalView and 

OpenView data, Nasdaq’s full depth of 

book data feeds for Nasdaq securities 

and for NYSE and Amex securities.5

The text of the proposed rule change is 

available at Nasdaq, the Commission’s 

Public Reference Room, and 

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 

On February 12, 2007, Nasdaq 

completed the implementation of the 

new Nasdaq Market Center Execution 

System, commonly known as ‘‘Single 

Book.’’ The Single Book is the product 

of the integration of Nasdaq’s three 

separate execution platforms into a 

single platform trading all Nasdaq, 

NYSE, and Amex securities. 

A by-product of this integration and 

the new system is a re-alignment of 

Nasdaq’s data feeds. Under the previous 

systems, market data for Nasdaq 

securities was disseminated on one set 

of data feeds and market data for NYSE 

and Amex securities was disseminated 

on another. Because the Single Book 

processes Nasdaq, NYSE, and Amex 

securities on a single platform, the 

market data for all securities is 

disseminated on a single, unified set of 

data feeds. For example, full depth of 

book data for Nasdaq securities was 

previously disseminated via one feed 

and full depth data for NYSE and Amex 

securities was disseminated via another. 

Starting February 12, 2007, market 

participants’ best bids and offers for all 

securities are disseminated together via 

various unified data feeds. Full depth of 

book data for Nasdaq securities and for 

NYSE and Amex securities are now also 

disseminated via a unified full depth of 

book feed, made available in various 

formats. 

In November 2006, Nasdaq filed SR–

NASDAQ–2006–048,6 a proposed rule 

change to lower the distributor fees 

applicable to the full depth feed 

emanating from the Single Book which 

has not yet been approved. Therefore, 

Nasdaq continues to assess its 

previously-approved fees to its current 

data feeds. This situation results in 

economic continuity in that market data 

recipients will continue to pay the same 

amount if they continue to receive the 

same market data elements. Thus, for 

example, a professional user that 

receives full depth of book for both 

Nasdaq and NYSE/Amex stocks in the 

past paid $70 for the Nasdaq data and 

$6 for the NYSE/Amex data, and will 

continue to pay that amount in the 

future. 

Nasdaq continues to assess the 

currently approved distributor fees for 

both TotalView and OpenView to 

recipients of the Single Book depth of 

book feeds. Currently, pursuant to Rule 

7019(b), TotalView and OpenView are 

each subject to separate monthly 

distributor fees of $2,500 per month 

plus either $1,000 per month for 

internal distributors or $2,500 per 

month for external distributors. In other 

words, an external distributor of both 

TotalView and OpenView would pay 

$10,000 per month. 

Prior to the Single Book, each 

distributor chose whether it would 

distribute TotalView, OpenView, or 

both. Beginning February 12, 2007, the 

full depth data feeds contained all of the 

data previously disseminated separately 

via both TotalView and OpenView. This 

motivated Nasdaq to propose in SR–

NASDAQ–2006–48 a unified fee 

schedule with a lower distributor fee for 

TotalView. In the absence of approval of 

that proposal, beginning April 1, 2007, 

the first fee-liable billing cycle following 

the full launch of the Single Book, this 

will result in higher distributor fees for 

many vendors because the TotalView 

and OpenView data elements are 

included in the unified full depth data 

feeds, and each set of data continues to 

be liable for its own separate distributor 

fee. 

In order to avoid this impact, Nasdaq 

is proposing to lower the current fees 

until such time as SR–NASDAQ–2006–

048 is decided. Due to the variables 

affecting the level of distributor fees 

paid by each vendor—whether it 

distributes TotalView, OpenView, or 

both and whether it distributes the data 

internally, externally, or both—it is 

impossible to replicate exactly the fee 

schedule proposed for the unified feed. 

Nasdaq has, however, spent significant 

time and energy assessing the vendor 

population and has attempted to lower 

the fees so as to minimize the aggregate 

impact on the overall vendor 

community. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,7 in 

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

Act,8 in particular, in that lowering the 

distribution fees for Nasdaq full depth 

of book feeds for Nasdaq and NYSE and 

Amex securities will encourage broader 

dissemination of that data and thereby 

increase transparency in those 

securities. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b–

4(f)(6) thereunder.10

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.11 However, Rule 19b–


pwalker on PROD1PC71 with NOTICES
19564 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 

requirement. The Commission has determined to 

grant this request. 

12 Id. 

13For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

14 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)(6). 

4(f)(6)(iii) 12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver would permit 

Nasdaq to implement the proposed rule 

change on April 1, 2007, enabling many 

vendors to avoid paying higher 

distributor fees. For this reason, the 

Commission designates the proposed 

rule change to be operative upon filing 

with the Commission.13

At any time within 60 days of the 

filing of such 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–2007–032 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–2007–032. 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–2007–032 and 

should be submitted on or before May 

9, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7317 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55609; File No. SR–

NASDAQ–2007–033] 

Self-Regulatory Organizations; the 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Waive Fees 

for Distributors of Certain Market Data 

From the Nasdaq Market Center 

April 10, 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 March 30, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by Nasdaq. The 

Exchange has filed the proposal as a 

‘‘non-controversial’’ rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it 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 is proposing to modify 

Nasdaq Rule 7023(c) to waive the 

distributor fees applicable to Nasdaq 

OpenView for recipients of the new 

Nasdaq Level 2 data feed or the new 

OpenView Basic data feed for a sixmonth pilot. The text of the proposed 

rule change is available at Nasdaq, the 

Commission’s Public Reference Room, 

and 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 

On February 12, 2007, Nasdaq 

completed the implementation of the 

new Nasdaq Market Center Execution 

System, commonly known as ‘‘Single 

Book.’’ The Single Book is the product 

of the integration of Nasdaq’s three 

separate execution platforms into a 

single platform trading all Nasdaq, 

NYSE, and Amex securities. 

A by-product of this integration and 

the new system is a re-alignment of 

Nasdaq’s data feeds. Under the previous 

systems, market data for Nasdaq 

securities was disseminated on one set 

of data feeds and market data for NYSE 

and Amex securities was disseminated 

on another. Because the Single Book 

processes Nasdaq, NYSE, and Amex 

securities on a single platform, the 

market data for all securities is 

disseminated via more unified data 

feeds. For example, previously Nasdaq 

disseminated each market participant’s 

best bid and offer for Nasdaq securities 

on the Nasdaq Quotation Dissemination 

Service (‘‘NQDS’’) and for NYSE and 

Amex securities on the OpenView feed. 


pwalker on PROD1PC71 with NOTICES