[Federal Register Volume 66, Number 108 (Tuesday, June 5, 2001)]
[Notices]
[Pages 30254-30256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14030]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44363; File No. SR-NASD-2001-32]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the National 
Association of Securities Dealers, Inc. Relating to Level 1 Market Data 
Fees

May 29, 2001.
    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 May 4, 2001, the Nasdaq Stock Market, Inc. (``Nasdaq'') filed with 
the Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule changes as described in Items I and II

[[Page 30255]]

below, which Items have been prepared by Nasdaq.\3\ The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons. For the reasons discussed below, the 
Commission is granting accelerated approval of the proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The current proposal replaces File No. SR-NASD-2001-24, 
which Nasdaq filed on March 30, 2001, and withdrew on April 23, 
2001. See letter from Jeffrey S. Davis, Assistant General Counsel, 
Nasdaq, to Katherine England, Assistant Director, Division of Market 
Regulation (``Division''), Commission dated April 20, 2001.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Nasdaq filed a proposed rule change to amend NASD Rule 7010 of the 
National Association of Securities Dealers, Inc. (``NASD'' or 
``Association''). Under the proposal, Nasdaq will retroactively 
establish as permanent the fees currently assessed for Level 1 market 
data delivered to non-professional users on a monthly or per query 
basis.\4\ Nasdaq will make the proposed rule change effective 
immediately upon approval.
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    \4\ The pilot program expired on April 2, 2001. See Securities 
Exchange Act Release No. 42715 (April 24, 2000), 65 FR 52460 (May 1, 
2000). In the current proposal, Nasdaq requests that the permanent 
adoption of the current pilot fees be made retroactive to the 
expiration of the pilot.
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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 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 states that it has consistently supported the broadest, most 
effective dissemination of market information to public investors. 
Towards that end, in April of 1999, Nasdaq implemented a one-year pilot 
program that reduced by 50% the user fees for Level 1 market data 
delivered to non-professional users on a monthly basis (from $4 to $2), 
and also for Level 1 market data delivered to non-professional users on 
a per query basis (from $.01 to $.005).\5\
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    \5\ See Securities Exchange Act Release No. 41499 (June 9, 
1999), 64 FR 32910 (June 19, 1999).
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    In April of 2000, Nasdaq further reduced by 50% the user fees for 
Level 1 market data delivered to non-professional users on a monthly 
basis, but maintained the current fees for Level 1 market data 
delivered to non-professional users on a per query basis. Under the 
current pilot, the non-professional per user fee was reduced from $2 to 
$1 per month (equating to a 75% reduction in fees in two years), and 
the per query fee was maintained at $.005 per query.
    Nasdaq believes that reducing market data fees helps meet the 
demand for realtime market data by non-professional market 
participants. In addition, Nasdaq believes that reduced Nasdaq rates 
lessen the costs to NASD member firms of supplying real-time market 
data to their customers through automated means and encourages current 
delayed-data vendors to offer increased access to real-time Level 1 
data to their subscribers.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A(b)(5) \6\ of the Act in that the proposal 
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 association operates or controls.
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    \6\ 15 U.S.C. 78o-3(b)(5).
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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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Nasdaq has neither solicited nor received written comments on the 
proposed rule change.

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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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 will also be 
available for inspection and copying at the principal office of the 
NASD. All submissions should refer to File No. SR-NASD-2001-32 and 
should be submitted by June 26, 2001.

IV. Commission's Findings and Order Grating Accelerated Approval of 
the Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act \7\ and the rules and regulations 
thereunder applicable to a national securities association. 
Specifically, the proposed rule change is consistent with Section 
15A(b)(5) \8\ in that the proposal should provide 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 
Association operates or controls. In addition, the proposed rule change 
may further the national market system's goal in Section 
11A(a)(1)(C)(iii) of assuring the availability to investors of market 
information.\9\
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    \7\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f),
    \8\ 15 U.S.C. 78o-3(b)(5).
    \9\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    Technological developments over the last few years have allowed 
vendors to provide their customers with more efficient and cost 
effective methods of executing securities transactions. The Commission 
expects that reduced market data fees will further benefit the investor 
by reducing the costs of executing transactions. For the investor to 
make sound financial decisions, efficient and inexpensive access to 
real-time market data information is vital. Thus, the Commission 
believes that a retroactive application of a permanent reduction in the 
non-professional market data fees should enhance investor access, and 
may encourage increased investor participation in the securities 
markets.
    Pursuant to section 19(b)(2),\10\ the Commission finds good cause 
for approving the proposed rule change prior to the thirtieth day after 
the date

[[Page 30256]]

of publication of notice of the filing in the Federal Register. The 
Commission believes that granting accelerated approval of the proposal 
will allow Nasdaq to expenditiously implement the permanent reduction 
in market data fees, on a retroactive basis, without any unnecessary 
delay and should confer a benefit upon those firms that provide real-
time data to their customers and subscribers. The Commission also notes 
that it did not receive any comments on the pilot program. Accordingly, 
the Commission does not believe that the current filing raises any 
regulatory issues not raised by the previous filing.
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    \10\ 15 U.S.C. 78s(b)(2)
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    It is therefore ordered, pursuant to Section 19(b)(2) \11\ of the 
Act, that the proposed rule change, as amended, (SR-NASD-2001-32) is 
approved on an accelerated basis.
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    \11\ Id. 

    For the Commission, by the Division of market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-14030 Filed 6-4-01; 8:45 am]
BILLING CODE 8010-01-M