Document ID: SEC-2008-1429-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2008-10-15T04:00Z

[Federal Register: October 15, 2008 (Volume 73, Number 200)]
[Notices]               
[Page 61181-61183]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15oc08-151]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58752; File No. SR-NASDAQ-2008-080]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Fees for Access to the Clearly Erroneous Functionality of the 
Nasdaq Regulation Reconnaissance Service

October 8, 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 October 6, 2008, 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 by Nasdaq. Pursuant to Section 19(b)(3)(A)(ii) of 
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ Nasdaq has designated 
this proposal as establishing or changing a due, fee, or other charge, 
which renders the proposed rule change effective upon filing.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii)
    \4\ 17 C.F.R. 240.19b-4(f)(2).
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    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 establish fees for access to the Clearly 
Erroneous functionality provided by the Nasdaq Regulation 
Reconnaissance Service.
    The text of the proposed rule change is below. Proposed new 
language is in italics.\5\
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    \5\ Changes are marked to the rule text that appears in the 
electronic NASDAQ Manual found at http: //
nasdaqomx.cchwallstreet.com.
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* * * * *

7041. Nasdaq Regulation Reconnaissance Service

    (a) No change.
    (b) The Clearly Erroneous Viewer will be available to non-
Regulation Reconnaissance Service subscribers for a subscription fee of 
$100 per MPID, per month.
* * * * *

[[Page 61182]]

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 proposes to establish fees for limited access to the Clearly 
Erroneous Module of the Nasdaq Regulation Reconnaissance Service (``Reg 
Recon''). Reg Recon is currently available as an add-on to the Nasdaq 
Workstation and Weblink ACT 2.0. Reg Recon includes a Clearly Erroneous 
Module, which gives a subscribing firm real-time alerts when the firm 
has potentially erroneous trades.
    The Clearly Erroneous Module also offers Reg Recon subscribers an 
automated filing functionality, whereby a user can select their 
erroneous trades and electronically file them with Nasdaq's Market 
Watch Department in lieu of locating the form on the Nasdaq Web site 
and manually entering in all of the required information.
    Nasdaq proposes to offer access to the Clearly Erroneous Module 
through the Clearly Erroneous Viewer, which will provide users with the 
same functionality as the Clearly Erroneous Module without having to 
pay for the full suite of functionality provided by the Nasdaq 
Workstation and Weblink ACT 2.0. Regulation NMS monitoring is typically 
conducted by a small number of people within a firm's compliance group, 
and often requires look-ups in ACT and/or Time and Sales, both of which 
are offered by Nasdaq Workstation and Weblink ACT 2.0. Responsibility 
for a firm's clearly erroneous filings, however, is typically spread 
out across a much larger group of individuals at a firm. These 
individuals do not need the additional functionality that is provided 
by the Nasdaq Workstation or Weblink 2.0, yet to access the Clearly 
Erroneous Module firms must pay the full amount for the Nasdaq 
Workstation or Weblink ACT 2.0, currently $475 per user, per month and 
$375 per month, respectively.\6\ As such, Nasdaq is proposing to offer 
the Clearly Erroneous viewer for a subscription fee of $100 per user, 
per month. The proposed fee will cover the costs associated with 
establishing the service, responding to customer requests, configuring 
Nasdaq's systems, programming to user specifications, and administering 
the service, among other things.
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    \6\ Weblink users with up to an average of twenty transactions 
per day each month are charged a fee of $200 per month.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with Section 
6(b)(4) of the Act,\8\ 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, and it does not unfairly 
discriminate between customers, issuers, brokers or dealers. Use of the 
Clearly Erroneous Viewer is voluntary and the subscription fees will be 
imposed on all purchasers equally. The proposed fees will cover the 
costs associated with establishing the service, responding to customer 
requests, configuring Nasdaq's systems, programming to user 
specifications, and administering the service, among other things.
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    \7\ 15 U.S.C. 78f.
    \8\ 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, 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 rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\10\ 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2008-080 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2008-080. 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-2008-080 and should be submitted on or before 
November 5, 2008.

[[Page 61183]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-24375 Filed 10-14-08; 8:45 am]

BILLING CODE 8011-01-P