Document ID: SEC-2007-0315-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-03-05T05:00Z

[Federal Register: March 5, 2007 (Volume 72, Number 42)]
[Notices]               
[Page 9805-9807]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05mr07-89]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55355; File No. SR-NASDAQ-2007-007]

 
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's 7000 Series 
Rules

February 26, 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 9, 2007, The NASDAQ Stock Market LLC (``Nasdaq'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been substantially prepared by Nasdaq. Nasdaq has designated this 
proposal as non-controversial under Section 19(b)(3)(A)(iii) of the Act 
\3\ and Rule 19b-4(f)(6) thereunder,\4\ 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to reflect in the Rule 7000 Series of Nasdaq's 
rules certain changes made to the Rule 7000 Series of the rules of the 
National Association of Securities Dealers, Inc. (``NASD'') in recent 
months with respect to systems operated by Nasdaq and its affiliates 
under NASD rules, and to make other conforming changes to reflect 
Nasdaq commencing operations as an exchange for trading non-Nasdaq 
listed securities on February 12, 2007. Nasdaq proposed to implement 
the proposed rule change on February 12, 2007.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are in brackets.

7013. Consolidated Quotation Service and Exchange-Listed Securities 
Transaction Credit.

    (a) No change.
    (b) Nasdaq members that trade securities listed on the NYSE (``Tape 
A'') and Amex (``Tape B'') through Nasdaq may receive from Nasdaq 
transaction credits based on the number of transactions attributed to 
them. A transaction is attributed to a member if the transaction is 
executed through [CAES, ITS or Nasdaq's Brut Facility] the Nasdaq 
Market Center, and the member acts as liquidity provider (i.e., the 
member sells in response to a buy order or buys in response to a sell 
order). A Nasdaq member may earn credits from one or both pools 
maintained by Nasdaq, each pool representing 50% of the revenue paid by 
the Consolidated Tape Association to Nasdaq for each of Tape A and Tape 
B transactions after deducting the amount that Nasdaq pays to the 
Consolidated Tape Association for capacity usage. A Nasdaq member may 
earn credits from the pools according to the member's pro rata share of 
transactions attributed to Nasdaq members in each of Tape A and Tape B 
for each calendar quarter. Liquidity providers executing transactions 
in Tape B securities through the Nasdaq Market Center will receive 
credits with respect to such transactions on an estimated monthly 
basis; all other credits under this rule will be paid on a quarterly 
basis. 

7014. [Computer Assisted Execution Service] Nasdaq Market Center for 
Non-Nasdaq Securities.

    The charges to be paid by members [receiving the Computer Assisted 
Execution Service (CAES)] using the Nasdaq Market Center for trading 
non-

[[Page 9806]]

Nasdaq exchange-listed securities through the Nasdaq Market Center 
shall consist of a fixed service charge of $200 per member per month, 
transaction charges as provided in Nasdaq Rule 7018 and equipment-
related charges as provided elsewhere in the Rule 7000 Series.

7015. Access Services.

    (a)-(c) No change.
    (d) New Nasdaq Workstation.

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------------------------------------------------------------------------
Nasdaq Workstation Trader..............  $475 per user per month
                                          (including data entitlement
                                          package).
Nasdaq Workstation Post Trade..........  See Rule 7015[(d)](e).
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    (e)-(g) No change.
* * * * *

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 modifying its 7000 Series Rules to reflect certain 
changes made to the Rule 7000 Series of the rules of the NASD in recent 
months with respect to systems operated by Nasdaq and its affiliates 
under NASD rules, and to make other conforming changes to reflect 
Nasdaq commencing operations as an exchange for trading non-Nasdaq 
listed securities on February 12, 2007.
    Specifically, Nasdaq is:
     Amending Nasdaq Rule 7013 to reflect changes to NASD Rule 
7010(c)(2) by SR-NASD-2006-067 \5\ and to update system names to 
reflect Nasdaq's operation as an exchange.
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    \5\ Securities Exchange Act Release No. 54015 (June 19, 2006), 
71 FR 36369 (June 26, 2006) (SR-NASD-2006-067).
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     Amending Nasdaq Rule 7014 to update system names to 
reflect Nasdaq's operation as an exchange.
     Amending Nasdaq Rule 7015 to correct a cross-reference in 
the rule.
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) and (5) of the Act,\7\ in particular, in that the 
proposal 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, and is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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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

    Because the foregoing proposed rule change (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not become operative for 30 days from the date on which 
it was filed, or such shorter time as the Commission may designate, if 
consistent with the protection of investors and the public interest, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and 
subparagraph (f)(6)(iii) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to waive the operative 
delay if such action is consistent with the protection of investors and 
the public interest. Nasdaq has requested that the Commission waive the 
five-day notice requirement and 30-day operative delay and designate 
the proposed rule change immediately operative.
    The Commission is exercising its authority to waive the five-day 
notice requirement and believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. The Commission notes that the rule changes proposed herein 
are intended to conform to changes which have either recently been made 
effective as changes to NASD rules or are merely technical in nature. 
Thus, Nasdaq's proposal raises no new issues of regulatory concern. 
Moreover, waiving the operative delay will allow Nasdaq to implement 
the changes immediately in conjunction with Nasdaq beginning to operate 
as a national securities exchange for trading non-Nasdaq securities. 
Therefore, the Commission has determined to waive both the five-day 
notice requirement and the 30-day delay and allow the proposed rule 
change to become operative upon filing.\10\
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    \10\ For purposes only of waiving the operative delay of this 
proposal, the Commission notes that it has considered the proposed 
rule's impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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    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.

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

[[Page 9807]]

No. SR-NASDAQ-2007-007 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-2007-007. 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 Commissions 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 the Exchange. 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-2007-007 and should be submitted on or before 
March 26, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-3751 Filed 3-2-07; 8:45 am]

BILLING CODE 8010-01-P