Federal Register / Vol. 73, No. 90 / Thursday, May 8, 2008 / Notices 26177 

6See Securities Exchange Act Release No. 57228 

(Jan. 29, 2008), 73 FR 7017 (Feb. 6, 2008) (Order 

approving SR–FINRA–2007–040). 

7 15 U.S.C. 78o–3(b)(6). 

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

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

interpretation addressed in the 

Regulatory Notice to determine whether 

the original scheduled effective date 

might cause certain unintended and 

potentially harmful consequences. 

FINRA then asked the Commission to 

delay the effective date of paragraph (c) 

of Rule 2821, approved in SR–NASD–

2004–183, until August 4, 2008. FINRA 

explained that all other parts of Rule 

2821 approved in SR–NASD–2004–183 

would become effective as scheduled on 

May 5, 2008. Finally, FINRA stated that 

if, based on this additional review, 

FINRA concluded that further 

rulemaking was warranted, FINRA 

would file a separate rule change with 

the Commission. On January 29, 2008, 

the Commission granted FINRA’s 

proposed rule change to delay 

implementation of certain FINRA rule 

changes approved in SR–NASD–2004–

183 until August 4, 2008.6

FINRA has now concluded its review 

and will soon propose substantive 

amendments to Rule 2821, as discussed 

above. FINRA is filing this proposed 

rule change to delay the effective dates 

of paragraphs (c) and (d) of Rule 2821 

until 180 days following the SEC’s 

approval or disapproval of the 

substantive amendment that FINRA 

plans to file in the near future. FINRA 

has filed this proposed rule change as a 

‘‘non-controversial’’ rule change that is 

effective upon filing. FINRA is 

proceeding in this manner to give firms 

notice that they will not need to comply 

with these provisions until a later date. 

Paragraphs (a), (b), and (e) of Rule 2821, 

as approved in SR–NASD–2004–183, 

will become effective as scheduled on 

May 5, 2008. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,7 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. The rule change will 

promote investor protection because it 

will allow firms to better prepare 

procedures and systems to implement 

paragraphs (c) and (d) of Rule 2821 and 

will allow the Commission to more fully 

consider the new substantive rule 

change that FINRA intends to file in the 

near future. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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 proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

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

4(f)(6) thereunder.9

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–FINRA–2008–015 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–FINRA–2008–015. 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, 100 F Street, NW., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of FINRA. 

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–FINRA–2008–015 and 

should be submitted on or before May 

29, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harman, 

Deputy Secretary. 

[FR Doc. E8–10253 Filed 5–7–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57753; File No. SR–

NASDAQ–2008–036] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the Nasdaq Market 

Center 

May 1, 2008. 

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 24, 

2008, The NASDAQ Stock Market LLC 

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

Exchange Commission (‘‘Commission’’) 

mstockstill on PROD1PC66 with NOTICES

26178 Federal Register / Vol. 73, No. 90 / Thursday, May 8, 2008 / Notices 

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

4 17 CFR 240.19b–4(f)(2). 

5The proposed rule change also corrects 

typographical errors in Rule 7018(a)(2). 

6Currently, members with an average daily 

volume of (i) more than 20 million shares of 

liquidity provided and (ii) more than 35 million 

shares of liquidity accessed and/or routed, pay 

$0.0028 per share executed for Nasdaq Trades, 

$0.0029 per share executed for Covered NYSE 

Trades, $0.0028 per share executed for Regional 

Trades executed at Nasdaq, and $0.0029 for routing 

Regional Trades. Members with an average daily 

volume of more than 35 million shares of liquidity 

provided and (ii) more than 55 million shares of 

liquidity accessed and/or routed; or with an average 

daily volume of (i) more than 25 million shares of 

liquidity provided, and (ii) more than 65 million 

shares of liquidity accessed and/or routed currently 

pay $0.0026 per share executed for Nasdaq Trades, 

$0.0028 per share executed for Covered NYSE 

Trades, $0.0026 for Regional Trades executed at 

Nasdaq, and $0.0028 per share executed for routing 

Regional Trades. Other members currently pay 

$0.003 per share executed. 

7Currently, a member that accesses an average of 

55 million shares of liquidity or more through the 

Nasdaq Market Center in a month pays $0.00265 for 

Nasdaq Trades and Regional Trades executed in the 

Nasdaq Market Center and $0.00285 for NYSE 

Covered Trades executed in the Nasdaq Market 

Center unless the member qualifies for a better rate. 

8Currently, members at these volume levels 

receive $0.0025 for displayed Nasdaq Trades and 

Regional Trades, $0.024 for non-displayed Nasdaq 

Trades and Regional Trades, $0.0027 for displayed 

Covered NYSE Trades, and $0.0026 for nondisplayed Covered NYSE Trades. 

9Currently, members at these volume levels 

receive $0.0023 for displayed Covered NYSE 

Trades, $0.0022 for non-displayed Covered NYSE 

Trades, $0.0022 for displayed Nasdaq Trades and 

Regional Trades, and $0.0021 for non-displayed 

Nasdaq Trades and Regional Trades. 

10Currently, members at these volume levels 

receive $0.002 for displayed trades in all securities 

and $0.0019 for non-displayed trades in all 

securities. 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4). 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared substantially by 

Nasdaq. Pursuant to Section 

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

4(f)(2) 4 thereunder, Nasdaq has 

designated this proposal as establishing 

or changing a member due, fee, or other 

charge, which renders the proposed rule 

change effective immediately upon 

filing. 

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 pricing for 

Nasdaq members using the Nasdaq 

Market Center. Nasdaq will implement 

this proposed rule change on May 1, 

2008. The text of the proposed rule 

change is available at http:// 

nasdaq.complinet.com, Nasdaq, 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 

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 is adopting a more unified 

pricing schedule for fees charged for 

order execution and routing of orders 

that check the Nasdaq Market Center 

book prior to routing.5 The new fees 

apply to (i) Execution and routing of 

orders for securities listed on Nasdaq 

(‘‘Nasdaq Trades’’); (ii) execution of 

securities listed on the New York Stock 

Exchange (‘‘NYSE’’), routing of NYSElisted securities to venues other than the 

NYSE, and routing of NYSE-listed 

exchange-traded funds to the NYSE 

(collectively, ‘‘Covered NYSE Trades’’); 

and (iii) execution and routing of orders 

for securities listed on exchanges other 

than Nasdaq and NYSE (‘‘Regional 

Trades’’). The changes are designed to 

promote Nasdaq as a liquid and 

transparent venue for executing all 

exchange-listed securities by, in general, 

increasing the credit provided to 

members providing displayed liquidity 

through Nasdaq and decreasing the 

credit provided to members providing 

non-displayed liquidity. Nasdaq is also 

increasing the fees to access and/or 

route liquidity using orders that check 

the Nasdaq book prior to routing. Fees 

for routing orders that do not check the 

Nasdaq book prior to routing will 

remain unchanged, as will the fees for 

routing orders other than exchangetraded funds to the NYSE. Similarly, 

fees for securities priced at less than $1, 

fees for routing odd-lots, and fees for 

routing orders that are charged a fee by 

exchange specialists are not changing. 

Under the revised pricing schedule, a 

member 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 will pay $0.0029 per share 

executed,6 and other members will pay 

$0.003. However, a member that would 

otherwise pay $0.003 to execute trades 

in the Nasdaq Market Center will 

instead pay $0.00295 if it accesses a 

daily average of more than 55 million 

shares of liquidity through the Nasdaq 

Market Center in the month.7

Members that provide an average 

daily volume through the Nasdaq 

Market Center in all securities during 

the month of more than 35 million 

shares of liquidity provided will receive 

a credit of $0.0028 per share for 

executions against displayed liquidity 

and $0.0015 per share for executions 

against non-displayed liquidity.8

Members with an average daily volume 

through the Nasdaq Market Center in all 

securities during the month of more 

than 20 million shares of liquidity 

provided (but that do not qualify for the 

higher credit described in the preceding 

sentence) will receive a credit of 

$0.0025 per share for executions against 

displayed liquidity and $0.001 per share 

for executions against non-displayed 

liquidity.9 Other members will receive a 

credit of $0.002 per share for executions 

against displayed liquidity and $0.001 

per share for executions against nondisplayed liquidity.10 Nasdaq is also 

eliminating a program under which 

certain ‘‘low-volume securities’’ listed 

on exchanges other than Nasdaq or 

NYSE qualified for an enhanced 

liquidity provider credit of $0.004 for 

displayed liquidity and $0.0039 for nondisplayed liquidity. When Nasdaq 

introduced this program, it also 

amended Rule 7013 to eliminate market 

data revenue sharing for these lowvolume securities. Accordingly, Nasdaq 

is against amending this rule to reinstate 

revenue sharing for transactions in these 

securities executed through the Nasdaq 

Market Center, at the same 50% level 

previously in effect. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,11 in 

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

Act,12 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 

Nasdaq operates or controls. The impact 

of the changes upon the net fees paid by 

a particular market participant will 

depend upon a number of variables, 

including its monthly volume, the order 

types it uses, and the prices of its quotes 

and orders (i.e., its propensity to add or 

remove liquidity). Nasdaq notes that it 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 73, No. 90 / Thursday, May 8, 2008 / Notices 26179 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 15 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). 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. 

Although the proposed rule change 

increases order execution and routing 

fees and decreases liquidity provider 

credits for non-displayed liquidity, it 

also increases credits for displayed 

liquidity. Nasdaq believes that its fees 

remain competitive with those charged 

by other venues and therefore continue 

to be reasonable and equitably allocated 

to those members that opt to direct 

orders to Nasdaq rather than competing 

venues. 

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. 

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 

The foregoing proposed rule change 

has become effective upon filing with 

the Commission pursuant to Section 

19(b)(3)(A)(ii) of the Act 13 and Rule 

19b–4(f)(2) thereunder,14 in that the 

proposed rule change establishes or 

changes a member due, fee, or other 

charge imposed by the self-regulatory 

organization. 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–2008–036 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–2008–036. 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 on official business days between 

the hours of 10 a.m. and 3 p.m. 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–2008–036 and should be 

submitted on or before May 29, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–10211 Filed 5–7–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57759; File No. SR–

NYSEArca–2008–44] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Rule 6.62 To Include an Opening Only 

Order 

May 1, 2008. 

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 April 23, 

2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 prepared 

substantially by NYSE Arca. NYSE Arca 

filed the proposed rule change as a 

‘‘non-controversial’’ proposed 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 

The Exchange proposes to amend 

NYSE Arca Rule 6.62 to include an 

additional order type, known as the 

Opening Only Order, to provide 

investors greater flexibility. The text of 

the proposed rule change is available at 

http://www.nyse.com, the principal 

office of NYSE Arca, 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, 

NYSE Arca 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. 

NYSE Arca has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

mstockstill on PROD1PC66 with NOTICES