Document ID: SEC-2007-0123-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-01-26T05:00Z

[Federal Register: January 26, 2007 (Volume 72, Number 17)]
[Notices]               
[Page 3891-3892]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ja07-156]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55131; File No. SR-NASDAQ-2006-066]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Reduce Risk Management Service Fees

January 19, 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 December 29, 2006, 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. 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 reduce the fees charged for Nasdaq's Risk 
Management Service (``Service''). Nasdaq will implement the proposed 
rule change immediately. 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
    The Service provides clearing brokers with a view of their 
correspondents' trading activity, notification when pre-set trading 
limits have been breached and the ability to prevent certain trades 
from locking in and clearing when the pre-set limits have been 
exceeded.
    Currently, Nasdaq imposes a fee on clearing firms that use the 
Service of $17.25 per month for each correspondent executing broker 
monitored by Nasdaq, and a per-trade fee of $0.035.\5\ The total amount 
of Service fees per month for an individual clearing firm is currently 
capped at $10,000.
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    \5\ This fee amount is incorrectly reflected in Nasdaq's rules 
as $0.0035 per trade, as the result of an inadvertent error 
occurring when the fee schedule at issue was transferred into the 
Nasdaq rule book as part of Nasdaq's exchange registration process. 
At all relevant times, Nasdaq has imposed the specific Commission-
approved fee rate of $0.035 per trade level, which is now being 
reduced to $0.025 with the instant proposed rule change.
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    With the instant proposed rule change, Nasdaq proposes to reduce 
the per trade fee for the Service to $0.025, and cap the per month 
total Service fee per clearing firm at $7,500. Nasdaq believes that 
these fee reductions will ensure that Nasdaq's charges for risk 
management services remain competitive with charges of other providers 
of similar services.
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.
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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 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 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.

[[Page 3892]]

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-2006-066 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-2006-066. 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-2006-
066 and should be submitted on or before February 16, 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. E7-1224 Filed 1-25-07; 8:45 am]

BILLING CODE 8011-01-P