Document ID: SEC-2010-0409-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2010-03-18T04:00Z

[Federal Register: March 18, 2010 (Volume 75, Number 52)]
[Notices]               
[Page 13172-13174]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18mr10-110]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61700; File No. SR-NASDAQ-2010-034]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Establish an Optional Non-Display Usage Cap for Internal 
Distributors of TotalView and OpenView

March 12, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on March 5, 2010, The NASDAQ Stock Market LLC (``Nasdaq'') filed 
with the Securities and Exchange Commission (``SEC'' or ``Commission'') 
the proposed rule change as described in Items I, II, and III, below, 
which Items have been prepared by Nasdaq. 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.
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 I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to create an optional non-display usage cap 
of $30,000 per month for internal distributors of TotalView and 
OpenView.
    The text of the proposed rule change is below. Proposed new 
language is in italics.\3\
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    \3\ Changes are marked to the rules of The NASDAQ Stock Market 
LLC found at http://nasdaqomx.cchwallstreet.com.
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* * * * *

7023. Nasdaq TotalView

    (a) No change.
    (a)(1)(A)-(C) No change.
    (D) As an alternative to (a)(1)(A), (B) and (C), a market 
participant may purchase an enterprise license at a rate of $30,000 per 
month for internal use of non-display data. The enterprise license 
entitles a distributor to provide

[[Page 13173]]

TotalView and OpenView to an unlimited number of non-display devices 
within its firm. The enterprise license shall not apply to relevant 
Level 1 fees.
    (a)(2) No change.
    (b)-(d) 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 proposing to amend Nasdaq Rule 7023 and establish an 
optional $30,000 per month non-display TotalView and OpenView fee cap 
for internal distributors. The TotalView and OpenView fee cap would not 
include distributor fees. By providing this non-display usage cap, 
firms will have more administrative flexibility in their consumption of 
TotalView and OpenView information.
    Currently, Nasdaq requires that internal distributors count and 
report each server and display device that processes TotalView-ITCH 
data as a professional TotalView and OpenView user. Some firms report 
upwards of 500 devices, while other firms report as few as one non-
display device using TotalView-ITCH data.
    Nasdaq proposes to permit a market participant to purchase an 
enterprise license at a rate of $30,000 per month for non-display usage 
in a firm. As the number of devices increase, so does the 
administrative burden on the end customer of counting these devices. 
For firms that feel they are near the capped amount, this new 
enterprise license helps relieve this administrative burden. 
Additionally, firms would purchase this optional enterprise license to 
reduce fees so no firms would experience a fee increase as a result of 
this filing. Nasdaq has offered similar enterprise licenses for 
professional and non-professional usage of TotalView-ITCH data in the 
past and is expanding this service to non-display devices as well.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\4\ in general and with Sections 
6(b)(5) of the Act,\5\ in particular in that it 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. Nasdaq believes that this 
proposal is in keeping with those principles by offering firms an 
option to increase their administrative flexibility in their 
consumption of TotalView and OpenView information.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(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

    The Exchange believes that the foregoing proposed rule change may 
take effect upon filing with the Commission pursuant to Section 
19(b)(3)(A) \6\ of the Act and Rule 19b-4(f)(6)(iii) thereunder \7\ 
because the foregoing proposed rule change does not: (i) Significantly 
affect the protection of investors or the public interest; (ii) impose 
any significant burden on competition; and (iii) 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. In addition, at least five days 
prior to the instant filing, the Exchange provided the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6)(iii).
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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 Number SR-NASDAQ-2010-034 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2010-034. 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 web site viewing and printing in 
the Commission's Public Reference Room. Copies of the 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

[[Page 13174]]

information that you wish to make available publicly. All submissions 
should refer to File Number SR-NASDAQ-2010-034 and should be submitted 
on or before April 8, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 C.F.R. 200.30-3(a)(12). [sic]
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5918 Filed 3-17-10; 8:45 am]
BILLING CODE 8011-01-P