Document ID: SEC-2007-0432-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-03-21T04:00Z

[Federal Register: March 21, 2007 (Volume 72, Number 54)]
[Notices]               
[Page 13330-13331]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21mr07-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55461; File No. SR-NASDAQ-2007-017]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Pricing for Nasdaq Members Using the Nasdaq Market Center

March 13, 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 February 28, 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 substantially prepared by Nasdaq. Nasdaq has filed the 
proposal pursuant to Section 19(b)(3)(A) 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).
    \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 modify the pricing for Nasdaq members using the 
Nasdaq Market Center. Nasdaq will implement this rule change on March 
1, 2007. The text of the proposed rule change is available at Nasdaq, 
the Commission's Public Reference Room, and http://www.nasdaq.com.

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
    This filing modifies the pricing schedule for trading securities 
through the Nasdaq Market Center. The changes reflect (i) The increase 
in volumes traded through the Nasdaq Market Center as a result of 
Nasdaq beginning to trade non-Nasdaq exchange-listed securities through 
the Nasdaq Market Center as of February 12, 2007, and (ii) responses to 
the competitive environment in which Nasdaq operates. Specifically, 
because much of the volume in non-Nasdaq securities that had formerly 
traded through the NASD ITS/CAES System has moved to the Nasdaq Market 
Center, the proposed rule change deletes language under which Nasdaq 
considered a member's volume in ITS/CAES in determining its fees for 
using the Nasdaq Market Center. Similarly, Nasdaq is modifying its 
existing charge for reporting transactions executed through the Nasdaq 
Market Center to reflect the increase in the volume of the Nasdaq 
Market Center occasioned by its beginning to trade non-Nasdaq 
securities. Currently, the $0.029 per side fee applies to members with 
an average daily volume during a month of less than 10,000 transaction 
reports; the threshold is being raised to 15,000 transaction reports.
    Nasdaq is also modifying its fees for routing to the New York Stock 
Exchange LLC (``NYSE'') to reflect an NYSE proposal to charge $0.0025 
per share for routing orders to other markets.\5\ When Nasdaq routes an 
order to NYSE and is charged this fee by NYSE, Nasdaq proposes to pass 
the fee on to its members on a direct basis. Finally, in order to 
ensure that Nasdaq's overall fees remain competitive, Nasdaq is 
lowering its lowest fee for removing liquidity and/or routing from 
$0.0027 per share executed to $0.0026. The fee is charged to members 
with an average daily volume through the Nasdaq Market Center in all 
securities during the month of (i) More than 35 million shares of 
liquidity provided, and (ii) more than 55 million shares of liquidity 
accessed and/or routed; or members with an average daily volume through 
the Nasdaq Market Center in all securities during the month of (i) More 
than 25 million shares of liquidity provided, and (ii) more than 65 
million shares of liquidity accessed and/or routed. Members with lower 
volumes pay $0.0028 or $0.003 per share executed, depending on their 
volume levels.
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    \5\ See File No. SR-NYSE-2007-18 (February 22, 2007).
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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 
Sections 6(b)(4) of the Act,\7\ in particular, in that the proposal 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members and issuers and other persons using any 
facility or system which Nasdaq operates or controls. Nasdaq believes 
that the fees reflect the fact that Nasdaq has begun to trade non-
Nasdaq exchange-listed securities through the Nasdaq Market Center, and 
also reflect fee changes by Nasdaq's competitors and the overall 
competitive environment in which Nasdaq operates.
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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.

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.

[[Page 13331]]

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 \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 Number SR-NASDAQ-2007-017 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-2007-017. 
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 the 
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-2007-017 and should be submitted on or before 
April 11, 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. E7-5089 Filed 3-20-07; 8:45 am]

BILLING CODE 8010-01-P