Document ID: SEC-2007-0371-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc.
Posted Date: 2007-03-13T04:00Z

[Federal Register: March 13, 2007 (Volume 72, Number 48)]
[Notices]               
[Page 11416-11417]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13mr07-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55409; File No. SR-NASD-2007-004]

 
Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change as Modified by 
Amendment No. 1 To Amend NASD Rule 7010(k) Relating to Transaction 
Reporting and Compliance Engine Transaction Data

March 6, 2007.
    On January 16, 2007, the National Association of Securities 
Dealers, Inc. (``NASD'') filed with the Securities and Exchange 
Commission (``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 offer subscribers to its 
Transaction Reporting and Compliance Engine system (``TRACE'') the 
ability to receive, for a reduced fee, a ``snapshot'' of real-time 
TRACE transaction data once each day rather than continuously 
throughout the day. The proposed rule change was published for comment 
in the Federal Register on February 2, 2007.\3\ The Commission received 
no comments regarding the proposal. On March 2, 2007, the Exchange 
submitted Amendment No. 1 to the proposed rule change.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55180 (January 26, 
2007), 72 FR 5095.
    \4\ Amendment No. 1 made technical changes to the proposal and 
is not subject to notice and comment.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
association.\5\ The proposal would offer a new TRACE subscription 
option whereby subscribers could pay $250/month to receive TRACE 
transaction data daily, once a day (``Snapshot TRACE data'') rather 
than paying $1,500/month for continuous access to TRACE transaction 
data. NASD has identified certain market participants, namely 
institutional investors, who only need a single price, daily, for each 
security for purposes of position valuation. NASD believes that, given 
the limited need for TRACE transaction data for these market 
participants, the $1,500/month charge for continuous access to TRACE 
transaction data may be unnecessarily expensive for them. NASD further 
believes that the proposed charge of $250/month for Snapshot TRACE data 
is reasonable and more appropriate for the tailored transaction 
informational needs of certain institutional market participants, who 
are currently foregoing TRACE transaction data at the higher monthly 
charge for continuous data.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    The Commission finds that the proposed rule change is consistent 
with the Act, and particularly with Section 15A(b)(5) thereof,\6\ which 
requires that NASD's rules provide for the equitable allocation of 
dues, fees, and other charges among members and issuers and other 
persons using any facility or system which NASD operates or controls. 
The Commission believes that the proposed rule change, by offering the 
option of tailored access to TRACE transaction data at a reduced cost, 
is reasonable.
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    \6\ 15 U.S.C. 78o-3(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NASD-2007-

[[Page 11417]]

004), as amended, be, and hereby is, approved and declared effective.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4507 Filed 3-12-07; 8:45 am]

BILLING CODE 8010-01-P