Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19567 

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

9 17 CFR 240.19b–4(f)(6). 

10 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 

requirement. The Commission has determined to 

grant this request. 

11 Id. 

12For 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). 13 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). 

become effective pursuant to Section 

19(b)(3)(A) of the Act 8 and Rule 19b–

4(f)(6) thereunder.9

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.10 However, Rule 19b–

4(f)(6)(iii) 11 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, clarifying that 

the Enterprise License includes the 

ability to distribute market data for 

NYSE and Amex securities. For this 

reason, the Commission designates the 

proposed rule change to be operative 

upon filing with the Commission.12

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–2007–034 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–2007–034. 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–2007–034 and 

should be submitted on or before May 

9, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7319 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55611; File No. SR–

NASDAQ–2007–035] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Create a 

Pilot Non-Professional Fee for 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 

Act3 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 establish for a 

twelve-month pilot period a $1 per 

month fee for non-professional use of 

real-time quotation information from the 

Nasdaq Market Center trading of NYSE 

and Amex listed stocks. 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. 


pwalker on PROD1PC71 with NOTICES
19568 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

9 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 

requirement. The Commission has determined to 

grant this request. 

10 Id. 

11For 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). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

To encourage more competition in the 

trading and quoting of NYSE and Amex 

listed stocks, as well as to encourage 

subscribership to Nasdaq full-depth 

products, Nasdaq is proposing Rule 

7023(c)(2) to establish a $1 per month 

fee for non-professional subscribers to 

OpenView, which consists of real-time 

market participant quotation 

information regarding Nasdaq’s trading 

of NYSE and Amex listed stocks, 

currently priced at $6 per month for all 

subscribers—professional or nonprofessional. The aggregate best bid and 

offer is one data element within Nasdaq 

OpenView, and is available for 

distribution free of charge. Nasdaq 

believes that this will promote wider 

distribution of data and benefit 

investors wishing to use that data in 

making investment decisions. 

The establishment of non-professional 

fees is a well-established practice of the 

network processors that distribute realtime consolidated data for Nasdaq, 

NYSE, and Amex stocks. It has also 

been an approved practice of the Nasdaq 

with respect to proprietary products, 

including the Nasdaq Quotation 

Dissemination Service. As such, Nasdaq 

believes that non-professional fees have 

been determined to be consistent with 

the Act and also to be in the best 

interests of investors and the public. 

Nasdaq is proposing to establish the 

non-professional fee for OpenView as a 

twelve-month pilot to determine 

whether the proposed fee will in fact 

spur competition and increase 

transparency, as non-professional fees 

have done in the past. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,5 in 

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

Act,6 in particular, in that establishment 

of a $1 per month non-professional fee 

for OpenView 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 Act7 and Rule 19b–

4(f)(6) thereunder.8

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.9 However, Rule 19b–

4(f)(6)(iii)10 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 one-year pilot 

on April 1, 2007, lowering the charge for 

the receipt of OpenView by nonprofessionals from $6 per month to $1 

per month, which should expand the 

distribution of the information. For this 

reason, the Commission designates the 

proposed rule change to be operative 

upon filing with the Commission.11

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–2007–035 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–2007–035. 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–2007–035 and 

should be submitted on or before May 

9, 2007. 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19569 

12 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. 78f. 

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

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7320 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55620; File No. SR–

NASDAQ–2007–039] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Modify the Distributor Fee for Nasdaq 

Index Weighting Information 

April 12, 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 April 4, 

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. 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 distributor 

fees for Nasdaq Index Weighting 

Information. 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 had 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 

The purpose of the proposed rule 

change is to modify distributor fees for 

Nasdaq Index Weighting Information. 

Nasdaq disseminates Nasdaq Index 

Weighting data via the Nasdaq Index 

Dissemination Service (‘‘NIDS’’) data 

feed and via the Nasdaq Trader Web 

site. Nasdaq Index Weighting reports 

include component and weighting 

information for a number of Nasdaq 

indices on a daily basis. Market 

participants pay a fee to obtain a license 

to distribute the Index Weighting 

Information to end users. The fees are 

based on the number of end users 

(whether internal or external to the 

organization) and the frequency of the 

distribution. The fees permitting 

distribution with unlimited frequency 

range from $1000 for the right to 

distribute the data to 1–500 subscribers 

up to $5,000 for the right to distribute 

to 10,000+ subscribers. The fees 

permitting distribution of data once a 

month, quarter, or year range from $500 

for the right to distribute data to 1–500 

subscribers to $1,000 for the right to 

distribute to 10,000+ subscribers. 

The proposed rule change would 

decrease the distributor fee for the 

lowest pricing tier, 1–500 subscribers, 

from $1,000 to $300 in the case of 

unlimited frequency of distribution, and 

from $500 to $275 in the case of 

distribution once a month, quarter, or 

year. Although the fee schedules 

provide for multiple tiered pricing 

based on the number of end users, the 

lowest pricing tier is the most common 

option selected by existing customers. 

The proposed fee would apply to 

distributors receiving the data via any 

delivery platform, including via NIDS or 

the Nasdaq Trader Web site. Distributors 

receiving the data via more than one 

delivery platform would be charged 

only once. The remaining tiers of the fee 

schedules (i.e., fees for 501–999, 1,000–

4,999, 5,000–9,999, and 10,000+ 

subscribers) will not change under this 

proposal. 

Nasdaq believes that the fee decrease 

would make this data report more 

attractive to vendors who may already 

be receiving and distributing other 

Nasdaq data feeds, thereby promoting 

the broader dissemination of Index 

Weighting Information. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,3 in 

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

Act,4 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 the 

Nasdaq operates or controls, and it does 

not unfairly discriminate between 

customers, issuers, brokers, or dealers. 

The proposed rule change reflects 

demand patterns for Index Weighting 

Information and is designed to provide 

an equitable allocation of fees across the 

customer base of Nasdaq market data 

distributors. Nasdaq further believes 

that this rule change would encourage 

the broader distribution of the Index 

Weighting data, 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. 

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 Nasdaq 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: 


pwalker on PROD1PC71 with NOTICES