Document ID: SEC-2006-1052-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-08-15T04:00Z

[Federal Register: August 15, 2006 (Volume 71, Number 157)]
[Notices]               
[Page 46952-46954]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15au06-72]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54285; File No. SR-NASDAQ-2006-023]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Technical and Conforming Changes to Nasdaq Rule 7018

August 8, 2006.
    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 July 31, 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 proposed rule change 
pursuant to section 19(b)(3)(A)(ii) of the Act,\3\ and rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposal 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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[[Page 46953]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to conform Nasdaq Rule 7018 to changes made to Rule 
7010(i) of the rules of the National Association of Securities Dealers, 
Inc. (``NASD'') since approval of Nasdaq's rules by the Commission in 
January 2006, and to make changes to the rule to reflect Nasdaq's 
operation as an exchange for Nasdaq-listed securities in advance of its 
operation for other securities. Nasdaq proposes to implement the 
proposed rule change on August 1, 2006. The text of the proposed rule 
change is available on Nasdaq's Web site at http://www.nasdaq.com, at 

the principal office of Nasdaq, and at 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 filing this proposed rule change to conform Nasdaq rule 
7018 to changes made to NASD rule 7010(i) since approval of Nasdaq's 
rules by the Commission in January 2006, and to make changes to the 
rule to reflect Nasdaq's operation as an exchange for Nasdaq-listed 
securities in advance of its operation for other securities. 
Specifically, Nasdaq is amending Nasdaq Rule 7018 to reflect changes 
made to NASD rule 7010(i) by SR-NASD-2005-141, SR-NASD-2006-013, SR-
NASD-2006-023, SR-NASD-2005-057, and SR-NASD-2006-061.\5\ Nasdaq is 
also adding language to the rule to clarify that until Nasdaq begins to 
operate as an exchange for non-Nasdaq stocks, the charges or credits 
for transactions in non-Nasdaq securities through the ITS/CAES System 
operated by The Nasdaq Stock Market, Inc. and Brut and Inet are set 
forth in NASD Rule 7010(i). Finally, because the fee schedule for 
Nasdaq-listed stocks traded on Nasdaq is based directly on the 
predecessor fee schedule of The Nasdaq Stock Market, Inc., which in 
turn has based the level of certain fees and credits on a market 
participants' combined volume in all securities traded through The 
Nasdaq Stock Market, Inc., Nasdaq is adding language to provide that 
its fees and credits will be based on volume in all securities traded 
through both Nasdaq exchange systems and systems operated by The Nasdaq 
Stock Market, Inc. for trading non-Nasdaq-listed securities. Nasdaq 
believes the effect of this language is to ensure that Nasdaq's fees 
and credits remain consistent with the fees and credits previously in 
effect.
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    \5\ Securities Exchange Act Release Nos. 52978 (December 19, 
2005), 70 FR 76842 (December 27, 2005) (SR-NASD-2005-141); 53256 
(February 8, 2006), 71 FR 8020 (February 15, 2006) (SR-NASD-2006-
013); 53320 (February 15, 2006), 71 FR 9395 (February 23, 2006) (SR-
NASD-2006-023); 54160 (July 17, 2006), 71 FR 42696 (July 27, 2006) 
(SR-NASD-2006-057); and 53931 (June 1, 2006), 71 FR 33325 (June 8, 
2006) (SR-NASD-2006-061).
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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,\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 believes the proposed 
rule change conforms Nasdaq Rule 7018 to changes made to NASD Rule 
7010(i) since approval of Nasdaq's rules by the Commission in January 
2006, and makes changes to the rule to reflect Nasdaq's operation as an 
exchange for Nasdaq-listed securities in advance of its operation for 
other securities.
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    \6\ 15 U.S.C. 78f.
    \7\ 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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is subject to section 19(b)(3)(A)(ii) of 
the Act \8\ and subparagraph (f)(2) of Rule 19b-4 thereunder \9\ 
because it establishes or changes a due, fee, or other charge 
applicable only to a member imposed by the self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. 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 No. SR-NASDAQ-2006-023 on the subject line.

Paper Comments

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

    All submissions should refer to File No. SR-NASDAQ-2006-023. 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

[[Page 46954]]

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 will also 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 No. SR-NASDAQ-2006-023 and should be submitted on or before 
September 5, 2006.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
[FR Doc. E6-13316 Filed 8-14-06; 8:45 am]

BILLING CODE 8010-01-P