Federal Register / Vol. 72, No. 84 / Wednesday, May 2, 2007 / Notices 24347 

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

2 17 CFR 240.19b–4. 

3 See Amex Rule 590. 

4 See Securities Exchange Act Release No. 55500 

(March 21, 2007), 72 FR 14314. 

5 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78f(b)(1) and 78f(b)(6). 

8 15 U.S.C. 78f(b)(7) and 78f(d)(1). 

9 17 CFR 240.19d–1(c)(2). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 240.19d–1(c)(2). 

12 See 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(44). 

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

2 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55671; File No. SR–Amex– 

2007–22] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Approving Proposed Rule Change, as 

Modified by Amendment No. 1 Thereto, 

To Amend Its Minor Rule Violation Fine 

Systems 

April 26, 2007. 

On February 21, 2007, the American 

Stock Exchange LLC (‘‘Amex’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

incorporate violations of Amex Rule 

131A—AEMI and Commentary .03 to 

Amex Rule 958—ANTE into Part 1 of its 

Minor Rule Violation Fine Systems 

(‘‘Plan’’).3 On March 20, 2007, the 

Exchange filed Amendment No. 1 to the 

proposed rule change. The proposed 

rule change, as amended, was published 

for comment in the Federal Register on 

March 27, 2007.4 The Commission 

received no comments regarding the 

proposal. The Commission is approving 

the proposed rule change, as modified 

by Amendment No. 1. 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.5 In particular, the 

Commission believes that the proposal 

is consistent with Section 6(b)(5) of the 

Act,6 because a rule that is reasonably 

designed to encourage members to 

comply with Exchange rules should 

help the Exchange carry out its 

supervisory responsibilities and thereby 

help protect investors and the public 

interest. 

The Commission further believes that 

the proposal is consistent with Sections 

6(b)(1) and 6(b)(6) of the Act,7 which 

require that the rules of an exchange 

enforce compliance with, and provide 

appropriate discipline for, violations of 

Commission and Exchange rules. In 

addition, because the Plan provides 

procedural rights to a person fined for 

any violation of an Exchange rule that 

is determined to be minor in nature to 

contest the fine and permits disciplinary 

proceedings on the matter, the 

Commission believes that the Plan, as 

amended by this proposal, provides a 

fair procedure for the disciplining of 

members and persons associated with 

members, consistent with Sections 

6(b)(7) and 6(d)(1) of the Act.8

Finally, the Commission finds that the 

proposal is consistent with the public 

interest, the protection of investors, or 

otherwise in furtherance of the purposes 

of the Act, as required by Rule 19d– 

1(c)(2) under the Act,9 which governs 

minor rule violation plans. The 

Commission believes that the proposed 

change to the Plan will strengthen the 

Exchange’s ability to carry out its 

oversight and enforcement 

responsibilities as a self-regulatory 

organization in cases where full 

disciplinary proceedings are unsuitable 

in view of the minor nature of the 

particular violation. 

In approving this proposed rule 

change, the Commission in no way 

minimizes the importance of 

compliance with Amex rules and all 

other rules subject to the imposition of 

fines under the Exchange’s Plan. The 

Commission believes that the violation 

of any self-regulatory organization’s 

rules, as well as Commission rules, is a 

serious matter. However, the Plan 

provides a reasonable means of 

addressing rule violations that do not 

rise to the level of requiring formal 

disciplinary proceedings, while 

providing greater flexibility in handling 

certain violations. The Commission 

expects that Amex will continue to 

conduct surveillance with due diligence 

and make a determination based on its 

findings, on a case-by-case basis, 

whether a fine of more or less than the 

recommended amount is appropriate for 

a violation under the Plan or whether a 

violation requires formal disciplinary 

action. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 10 and Rule 

19d–1(c)(2) under the Act,11 that the 

proposed rule change (SR–Amex–2007– 

22), as modified by Amendment No. 1, 

be, and hereby is, approved and 

declared effective. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8312 Filed 5–1–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55668; File No. SR– 

NASDAQ–2007–030] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change 

Relating to the Extension of a Fee Pilot 

for National Quotation Data Service 

April 25, 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 29, 2007, 

The NASDAQ Stock Market LLC 

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

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared substantially by the 

Nasdaq. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons and is approving the proposal 

on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to re-establish 

retroactively from January 1, 2007 

through December 31, 2007, a pilot 

program under Nasdaq Rule 7017(b), 

which reduced from $50 to $10 the 

monthly fee that non-professional users 

pay to receive National Quotation Data 

Service (‘‘NQDS’’). 

The text of the proposed rule change 

is available at http:// 

nasdaq.complinet.com, Nasdaq’s 

principal office, and 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, 

Nasdaq included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

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24348 Federal Register / Vol. 72, No. 84 / Wednesday, May 2, 2007 / Notices 

3 Pursuant to Nasdaq Rule 7011(b), Nasdaq 

separately distributes Level 1 data to nonprofessionals for a monthly fee of $1.00. 4 See Securities Exchange Act Release No. 43190 

(August 22, 2000), 65 FR 52460 (August 29, 2000). 5 See Securities Exchange Act Release Nos. 44788 

(September 13, 2001), 66 FR 48303 (September 19, 

2001); 46446 (August 30, 2002), 67 FR 57260 

(September 9, 2002); 48386 (August 21, 2003), 68 

FR 51618 (August 27, 2003); 50318 (September 3, 

2004), 69 FR 54821 (September 10, 2004); and 

53531 (March 21, 2006); 71 FR 15506 (March 28, 

2006). 

6 15 U.S.C. 78f. 

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

8 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

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

rule change. The text of these statements 

may be examined at the places specified 

in Item III 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 re-establish 

retroactively from January 1, 2007 

through December 31, 2007, the fee 

reduction pilot program under Nasdaq 

Rule 7017(b) that reduced from $50 to 

$10 the monthly fee that nonprofessional users pay to receive NQDS. 

NQDS delivers market maker 

quotations, Nasdaq Level 1 3 service 

(including calculation and display of 

the inside market), and last sale 

information that is dynamically updated 

on a real-time basis. NQDS data is used 

not only by firms, associated persons, 

and other market professionals, but also 

by non-professionals who receive the 

service through authorized vendors, 

including, for example, on-line 

brokerage firms. Prior to August 31, 

2000, NQDS data was available through 

authorized vendors at a monthly rate of 

$50 for professionals and nonprofessionals users alike. In August 

2000, the NASD, through Nasdaq, filed 

a rule change to reduce from $50 to $10 

the monthly fee that non-professional 

users pay to receive NQDS data. The 

Commission approved the pilot on 

August 22, 2000, and the fee reduction 

commenced on August 31, 2000 on a 

one-year pilot basis.4 On September 5, 

2001, August 29, 2002, August 15, 2003, 

August 20, 2004, and January 24, 2006, 

the NASD, through Nasdaq, filed 

proposed rule changes to extend the 

pilot for additional one-year periods.5

Nasdaq adopted the existing pilot 

program when it began operating as a 

national securities exchange in 2006, 

and is now proposing to extend the pilot 

of its own accord. 

Nasdaq has consistently supported 

broad, effective dissemination of market 

information to public investors. Thus, 

Nasdaq is proposing to re-establish the 

fee-reduction pilot retroactively from 

January 1, 2007 through December 31, 

2007. Nasdaq notes that the existing 

pilot reduced by 80% the fees that nonprofessionals paid for NQDS data prior 

to August 31, 2000. Continuing the 

reduction of NQDS for non-professional 

users demonstrates Nasdaq’s continued 

commitment to individual investors and 

responds to the dramatic increase in the 

demand for real-time market data by 

non-professional market participants. In 

addition, Nasdaq member firms often 

supply real-time market data to their 

customers through automated means. 

Thus, Nasdaq member firms’ customers 

would benefit from the continued fee 

reduction. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section of the Act,6 in 

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

Act,7 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. Nasdaq 

also believes that the fee reduction 

enhances the public’s access to market 

data that is relevant to investors when 

they make financial decisions and 

encourages increased public 

participation in the securities markets. 

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. 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 

<bullet≤ Use the Commission’s 

Internet comment form (http:// 

www.sec.gov/rules/sro.shtml); or 

<bullet≤ Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2007–030 on the 

subject line. 

Paper Comments 

<bullet≤ 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–2007–030. 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 the 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–2007–030 and 

should be submitted on or before May 

23, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder, 

applicable to a national securities 

exchange.8 In particular, the 

Commission believes that the proposal 

is consistent with Section 6(b)(4) of the 

Act,9 which requires that the rules of an 

exchange provide an equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. 

The pilot lowers the monthly fee for 

non-professionals to receive NQDS from 

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Federal Register / Vol. 72, No. 84 / Wednesday, May 2, 2007 / Notices 24349 

10 15 U.S.C. 78s(b)(2). 

11 See id. 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 Nasdaq notes, for example, that of 

approximately 4,200 material news notifications 

submitted to MarketWatch in January 2007, over 

70% were submitted by fax. 

4 According to Nasdaq, although the system was 

previously on a portion of the Nasdaq Online issuer 

Web site that offered limited access, it now resides 

on an area of Nasdaq Online that can be more easily 

and directly accessed by companies and their 

representatives. 

$50 to $10 a month. The Commission 

notes that the NQDS feature provides a 

mechanism to allow access to market 

data that is relevant to investors when 

they make financial decisions and that 

it does not unfairly discriminate 

between customers, issuers, brokers or 

dealers. 

Accordingly, the Commission finds 

good cause for approving this proposed 

rule change before the 30th day after the 

date of publication of notice of filing 

thereof in the Federal Register pursuant 

to Section 19(b)(2) of the Act.10

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–NASDAQ– 

2007–030), be, and it hereby is, 

approved on an accelerated basis, as a 

pilot, scheduled to expire on December 

31, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8310 Filed 5–1–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55672; File No. SR– 

NASDAQ–2007–029] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change and 

Amendment No. 1 Thereto To Require 

That Companies Submit Material News 

to Nasdaq Using Nasdaq’s Electronic 

Disclosure System, Except in 

Emergency Situations 

April 26, 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 27, 

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 substantially by 

Nasdaq. Nasdaq filed Amendment No. 1 

to the proposed rule change on April 25, 

2007. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to amend Nasdaq 

Rule 4120, ‘‘Trading Halts,’’ and IM– 

4120–1, ‘‘Disclosure of Material 

Information,’’ to require Nasdaq-listed 

companies to submit material news to 

Nasdaq using Nasdaq’s electronic 

disclosure submission system, except in 

emergency situations. To allow Nasdaq 

sufficient time to communicate with 

listed companies about the new 

requirement, Nasdaq will not 

implement the proposed rule change 

until approximately 90 days after the 

proposal is approved. Nasdaq’s 

communication with companies 

regarding this proposed change will 

provide notice of the implementation 

date. The text of the proposed rule 

change is available at Nasdaq, in the 

Commission’s Public Reference Room, 

and at 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 

Pursuant to Nasdaq Rules 4310(c)(16) 

and 4320(e)(14), a Nasdaq-listed 

company is required, except in unusual 

circumstances, to make prompt 

disclosure to the public through any 

Regulation FD compliant method (or 

combination of methods) of disclosure 

of any material information that would 

reasonably be expected to affect the 

value of its securities or influence 

investors’ decisions. These rules also 

require that the company provide prior 

notice of certain disclosures to Nasdaq’s 

MarketWatch Department 

(‘‘MarketWatch’’). 

Current methods to provide prior 

notification to MarketWatch include 

electronic submission using Nasdaq’s 

Electronic Disclosure submission 

service, fax, and phone. While the 

Electronic Disclosure submission 

service was introduced to companies in 

2004, the majority of companies still 

rely primarily on fax submission to 

MarketWatch.3 The material 

information from fax-delivered 

documents and telephonic notifications 

must be manually retyped into 

MarketWatch’s database systems. 

Nasdaq notes that this uses staff time 

with no added regulatory benefit, 

introduces error risk, and results in a 

less robust audit trail. To reduce this 

administrative burden, Nasdaq has 

recently taken steps to make the 

Electronic Disclosure submission 

system more accessible to listed 

companies 4 and is now proposing to 

require that companies submit material 

news to Nasdaq using the Electronic 

Disclosure submission system, except in 

emergency situations. 

Using the Electronic Disclosure 

submission system, company employees 

and representatives can transmit 

disclosures to Nasdaq using a secure, 

encrypted connection. Upon receipt, 

Nasdaq reviews these disclosures to 

determine if a trading halt is 

appropriate. If Nasdaq believes that a 

halt may be appropriate, Nasdaq will 

confirm all disclosures with a company 

source before taking any action. Nasdaq 

does not disseminate any information 

received over the Electronic Disclosure 

submission system. 

Companies would still be required to 

notify Nasdaq before disseminating 

material news, even if an emergency 

situation prevented them from accessing 

the Electronic Disclosure submission 

system. Nasdaq would accept 

notification by phone or fax in these 

situations. Examples of the types of 

situations where Nasdaq believes this 

could occur include: Lack of computer 

or internet access; a technical problem 

on either the issuer or Nasdaq system, 

or an incompatibility between those 

systems; and a material development 

such that no draft disclosure document 

exists, but immediate notification to 

MarketWatch is important based on the 

event. 

Nasdaq believes that companies 

should be familiar with electronic 

submission of documents, given that 

most reports to the Commission must be 

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