Document ID: SEC-2007-0624-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-05-02T04:00Z

[Federal Register: May 2, 2007 (Volume 72, Number 84)]
[Notices]               
[Page 24347-24349]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02my07-110]                         

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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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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

[[Page 24348]]

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 non-
professional 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 non-
professionals 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.
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    \3\ Pursuant to Nasdaq Rule 7011(b), Nasdaq separately 
distributes Level 1 data to non-professionals 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).
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    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 non-professionals 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.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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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 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

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-NASDAQ-2007-030 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-2007-030. 
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.
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    \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).
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    The pilot lowers the monthly fee for non-professionals to receive 
NQDS from

[[Page 24349]]

$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\
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    \10\ 15 U.S.C. 78s(b)(2).
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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.
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    \11\ See 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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8310 Filed 5-1-07; 8:45 am]

BILLING CODE 8010-01-P