12994 Federal Register / Vol. 60, No. 46 / Thursday, March 9, 1995 / Notices

2 17 CFR 200.30–3(a)(12) (1994).

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

2Securities Exchange Act Release No. 35284

(January 27, 1995), 60 FR 6582.

3The computer facilities that support the

provision of NWII are operated by the Nasdaq Stock

Market, Inc. (‘‘NSMI’’), a wholly-owned subsidiary

of the NASD.

4See Release No. 34–35189 (January 3, 1995), 60

FR 3014 (January 12, 1995).

5The NWII roll-out will occur in five phases with

the final phase scheduled for completion in mid1996. Each phase consists of installing NWII at all

subscriber sites in a defined geographic area. Thus,

while the roll-out proceeds, some subscribers will

continue to utilize NWI and will pay the existing

charges for that service.

6NWI and NWII both permit the delivery of either

Level 2 or Level 3 Nasdaq service. Subscription to

Level 3 is limited to NASD members that meet the

financial and operational requirements for market

making. Subscription to Level 2 Nasdaq service is

open to non-members as well as members because

it does not provide the functionality needed to enter

quotations as a market maker.

7 17 CFR 200.30–3(a)(12).

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

2The NASD originally submitted the proposed

rule change on November 21, 1994. On December

1, 1994 and January 12, 1995, the NASD filed

amendments to its filing.

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 at

the Commission’s Public Reference

Section, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the CBOE. All submissions

should refer to the file number in the

caption above and should be submitted

by March 30, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.2

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–5702 Filed 3–8–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35438; File No. SR–NASD–

95–01]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the National Association of Securities

Dealers, Inc. Relating to Subscriber

Fees For Non-NASD Members

Receiving the Nasdaq Workstation TM II

Functionality

March 2, 1995.

On January 9, 1995, the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’),

pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 a proposed rule change to

extend to non-NASD members (e.g.,

institutional investors) receiving the

second generation of Nasdaq

WorkstationTM functionality (‘‘NWII’’)

the same subscriber fees that members

must now pay. The Commission

published notice of the proposed rule

change in the Federal Register on

February 2, 1995.2 No comments were

received in response to the notice. For

the reason discussed below, the

Commission is approving the proposed

rule change.

I. The Terms of Substance of the

Proposed Rule Change

On December 14, 1994, the NASD

submitted a proposed rule change—File

No. SR–NASD–94–76—to the

Commission that established a new fee

schedule for NASD member firms

receiving the second generation of

NWII.3 The fee schedule contained in

File No. SR–NASD–94–76 became

effective upon receipt by the SEC in

accordance with Section 19(b)(3)(A)(ii)

of the Act and Rule 19b–4(a)

thereunder.4 As specified in File No.

SR–NASD–94–76, the new subscriber

fees for NWII will add to Sections A(9)

and E(5) of Part VIII of Schedule D to

the NASD By-Laws.

The NASD then filed the instant rule

change to extend to non-NASD members

(e.g., institutional investors) receiving

NWII functionality the same subscriber

fees that members must now pay: (a) a

service charge of $100/month per server;

(b) a display charge of $500/month per

presentation device; and (c) a charge of

$1,150/month for additional circuits.

This rule change does not, however,

entail any further modification to the fee

schedule language for NWII that was set

forth in File No. SR–NASD–94–76.

The sole purpose of this rule change

is to extend to non-NASD members

receiving the NWII, the same fees that

now apply to NASD members that

subscribe to the NWII. Currently, nonNASD members can access Level 2

Nasdaq Workstation service by

subscription to the original version of

the Nasdaq Workstation service

(‘‘NWI’’). The NASD, however, is in the

process of replacing NWI with NWII.5

As the NWII roll-out proceeds, it will

completely replace the existing NWI for

all classes of subscribers. The instant

rule change will ensure that the same

NWII charges are paid by all

subscribers, including those that are not

members of the NASD.

II. Commission Findings

The Commission believes that the rule

change is consistent with the

requirements of Section 15A(b)(5) of the

Act. Section 15A(b)(5) specifies that the

rules of a national securities association

shall provide for the equitable allocation

of reasonable dues, fees, and other

changes among members, issuers, and

other persons using any facility or

system that the Association operates or

controls. This rule provides that the

newly established fees for members

receiving the NWII functionality will

also be paid by non-member subscribers

receiving the NWII.6 This, in turn,

effectuates fairness in the recovery of

the applicable costs from the entire

subscriber base. As described in this

notice, NWII is being implemented in

phases with all current NWI subscribers

in a defined area being converted to

NWII. Also non-NASD members that are

converted to NWII will be liable for the

new fees; NWI subscribers (i.e.,

members and non-members) will

continue to pay the NWI service fees

until they are converted. The extension

of the new NWII fees schedule to nonmembers will result in the imposition of

uniform fees and an equitable allocation

of operating costs among all subscribers

receiving the NWII functionality.

It is therefore ordered, pursuant to

section 19(b)(2) of the Act, that the

proposed rule change SR–NASD–95–01

be, and hereby is, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–5701 Filed 3–8–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35435 File No. SR–NASD–

94–61]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

National Association of Securities

Dealers, Inc. Relating to the Filing

Requirements Under Article III, Section

44 of the NASD Rules of Fair Practice

Regarding Modified Guaranteed

Annuity Contracts and Modified

Guaranteed Life Insurance Contracts

March 2, 1995.

On January 12, 1995, the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’), pursuant to

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’) 1, filed

with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

a proposed rule change 2 that amends