Document ID: SEC-2008-1519-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2008-11-06T05:00Z

[Federal Register: November 6, 2008 (Volume 73, Number 216)]
[Notices]               
[Page 66090-66091]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06no08-83]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58891; File No. SR-NASDAQ-2008-072)]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 
Approving a Proposed Rule Change To Establish a PORTAL Reference 
Database and Related Fees

October 30, 2008.

I. Introduction

    On September 16, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange''), filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to establish a PORTAL Reference 
Database and related fees. The proposed rule change was published for 
comment in the Federal Register on September 30, 2008.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 58622 (September 23, 
2008), 73 FR 56876 (September 30, 2008)(the ``Notice'').
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II. Description of the Proposal

    Nasdaq has created, and has proposed to make publicly available, 
for a fee, a consolidated fully-electronic reference database of 
information culled from PORTAL offering documents and applications 
submitted to Nasdaq since 1990.\4\ Nasdaq has represented that access 
to the database would available to all market participants. The 
database would allow users to determine a PORTAL issue's name and 
offering description, CUSIP, country of incorporation, security class, 
maturity class and date, currency denomination, applicable interest and 
credit rating, convertibility and call provisions, total number of 
shares offered, and date of PORTAL designation, in addition to other 
information. On an ongoing basis, data regarding securities that obtain 
PORTAL designation would be added to the database.
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    \4\ For more information related to the background of the PORTAL 
Market, see Securities Exchange Act Release No. 55669 (April 25, 
2007), 72 FR 23874 (May 1, 2007).
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    Nasdaq has proposed that users of the PORTAL Reference Database 
would pay both an annual fee and an access fee per year of data 
desired. Annual fees would range between $20,000 and $100,000 and would 
be based on the number of users and are per calendar year. Access

[[Page 66091]]

fees, which also range from $20,000 to $100,000, would be tiered based 
on the number of users authorized for access and the number of the 
years for which data is requested. The total cost of access to the full 
database would be capped based on the number of users at a particular 
firm.

III. Discussion and Commission Findings

    The Commission has carefully reviewed the proposed rule change and 
finds that it is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\5\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(4) of the Act,\6\ which requires 
that an exchange have an equitable allocation of reasonable dues, fees 
and other charges among its members and other persons using any 
facility or system which the exchange operates or controls.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(4).
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    Nasdaq represented that it incurred hardware and software costs, as 
well as personnel and other technology costs, to establish the PORTAL 
Reference Database. Establishing the database required the retrieval, 
review, conversion, and organization of large volumes of documents. 
Nasdaq stated that there will be ongoing costs to maintain and update 
the database, as well. The Commission notes that the pricing structure 
should allow users to align and control the costs of access with their 
data needs, and that the information will be available to any 
participant that pays the fees. The Commission believes that the PORTAL 
Reference Database will make historical information about issuances of 
restricted equity and debt more available, which should assist market 
participants to make better-informed investment decisions regarding 
such securities.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change, (SR-NASDAQ-2008-072), be, and 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-26445 Filed 11-5-08; 8:45 am]

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