Document ID: SEC-2007-0644-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-05-07T04:00Z

[Federal Register: May 7, 2007 (Volume 72, Number 87)]
[Notices]               
[Page 25823-25824]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07my07-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55678; File No. SR-NASDAQ-2007-044]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Increase the Nasdaq Trading Rights Fee

April 27, 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 April 25, 2007, 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 substantially by Nasdaq. Nasdaq filed the proposal 
pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
\4\ thereunder, as establishing or changing a member due, fee, or other 
charge, which renders the proposed rule change effective upon filing 
with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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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 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to increase the monthly trading rights fee paid by 
Nasdaq members. Nasdaq will implement this proposed rule change on May 
1, 2007. The text of the proposed rule change is available at Nasdaq, 
http://www.nasdaq.com, 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 increasing its monthly trading rights fee, which is 
assessed on all Nasdaq members, from $200 to $500 per month. The fee 
had initially been set at a level to ease the transition of the Nasdaq 
Market Center's status as a facility of the NASD to a facility of a new 
self-regulatory organization (``SRO''). Now that Nasdaq has an 
established membership base, Nasdaq believes that the fee increase is

[[Page 25824]]

warranted to ensure that its monthly and annual membership fees fund a 
greater portion of the cost of regulating the Nasdaq market. Nasdaq 
believes that even with the fee increase, the cost of Nasdaq membership 
is generally lower than the cost of membership in other SROs.\5\ In 
this regard, it is particularly notable that unlike other SROs, Nasdaq 
does not charge annual registration fees for each of a firm's 
registered representatives.
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    \5\ See, e.g., New York Stock Exchange Price List 2007 at http://www.nyse.com/pdfs/2007pricelist.pdf
 (itemizing numerous 

registration, regulation, and trading rights fees); NASD By-Laws 
Schedule A, Section 1 at http://nasd.complinet.com/ nasd/display/

display.html?rbid=1189&element--id=1159000126; Chicago Stock 
Exchange Fees and Assessments at http://wallstreet.cch.com/CHXtools/PlatformViewer.asp?SelectedNode=chp_1_1&manual=/CHX/Admin/chx-feesandassessments/
.

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    Nasdaq is also deleting language from Rule 7001 that waived the 
application fee for NASD members applying for Nasdaq membership prior 
to August 1, 2006.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 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 Nasdaq operates or controls. Nasdaq believes that an increased 
monthly trading rights fee is a reasonable and equitable method of 
ensuring that its monthly and annual membership fees fund a greater 
portion of the cost of regulating the Nasdaq market, and that the 
overall cost of Nasdaq membership is reasonable as compared with the 
cost of membership in other SROs.
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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, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received form 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 \8\ 
and Rule 19b-4(f)(2) thereunder,\9\ 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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-2007-044 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-2007-044. 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 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-
044 and should be submitted on or before May 29, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-8596 Filed 5-4-07; 8:45 am]

BILLING CODE 8010-01-P