Document ID: SEC-2005-0467-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc.
Posted Date: 2005-12-29T05:00Z

[Federal Register: December 29, 2005 (Volume 70, Number 249)]
[Notices]               
[Page 77220-77222]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de05-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53006; File No. SR-NASD-2005-148]

 
Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval 
of Proposed Rule Change Relating to Fees for Non-NASD Members Using 
Nasdaq's INET Facility

December 22, 2005.
    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 December 9, 2005, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``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 prepared by Nasdaq. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons, and at the same time is granting accelerated 
approval of the proposed rule change.
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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

    Nasdaq proposes to modify the pricing for non-members using 
Nasdaq's INET Facility. Nasdaq requests approval to implement the 
proposed rule change retroactively to December 9, 2005. The text of the 
proposed rule change is below. Proposed new language is in italics.
* * * * *

7010. System Services

    (a)-(v) No Change.

(w) INET System Order Execution

    (1) No Change.
    (2) The fees applicable to non-members using Nasdaq's INET Facility 
shall be the fees established for members under Rule 7010(w), as 
established by SR-NASD-2005-128 and amended by SR-NASD-2005-147, and as 
applied to non-members by SR-NASD-2005-128 and SR-NASD-2005-148.
* * * * *

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 III below. Nasdaq has prepared summaries, set forth in sections A, 
B, and C below, of the most significant aspects of such statements.

[[Page 77221]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In SR-NASD-2005-147,\3\ which applies to NASD members, Nasdaq 
modified the fee schedule for its INET Facility. In this filing, Nasdaq 
is proposing to apply the same modification to non-NASD members that 
use Nasdaq's INET Facility. In summary, SR-NASD-2005-147: (1) Corrected 
the credit and fee schedule for American Stock Exchange (``Amex'') and 
New York Stock Exchange (``NYSE'') order executions that were 
incorrectly inverted in the original fee schedule; (2) codified current 
INET fees for orders executed as part of the Nasdaq Opening or Closing 
Cross Process; (3) codified current INET fee practices of revenue 
sharing for Tape B securities; (4) codified the current INET fee 
structure governing connectivity and terminal charges for its 
facilities; and (5) established a new uniform, tiered fee-structure for 
orders routed to the NYSE through DOT. Nasdaq states that an important 
objective of this proposal is to ensure uniform treatment under NASD's 
rules of members and non-members alike. Nasdaq requests that the 
Commission approve this filing retroactively as of December 9, 2005, 
and that the approval be granted on an accelerated basis.
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    \3\ SR-NASD-2005-147, which Nasdaq filed with the Commission on 
December 9, 2005, was effective upon filing pursuant to Section 
19(b)(3)(A)(ii) of the Act and Rule 19b-4(f)(2) thereunder.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act,\4\ in general, and with 
Section 15A(b)(5) of the Act,\5\ in particular, in that the proposed 
rule change 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 NASD operates or controls. 
Nasdaq states that an important objective of this proposal is to ensure 
uniform treatment under the NASD's rules of members and non-members 
alike.
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    \4\ 15 U.S.C. 78o-3.
    \5\ 15 U.S.C. 78o-3(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

    Nasdaq states that written comments were neither solicited nor 
received.

III. 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-NASD-2005-148 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.

All submissions should refer to File Number SR-NASD-2005-148. 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 such 
filing also will be available for inspection and copying at the 
principal office of the NASD. 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-NASD-2005-148 and should be submitted on or before 
January 19, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a self-regulatory organization.\6\ 
Specifically, the Commission believes that the proposed rule change is 
consistent with Section 15A(b)(5) of the Act,\7\ which requires that 
the rules of the self-regulatory organization provide for the equitable 
allocation of reasonable dues, fees, and other charges among members 
and issuers and other persons using any facilities or system which it 
operates or controls.
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    \6\ The Commission has considered the proposed rule's impact on 
efficiency, competition and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78o-3(b)(5).
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    The Commission notes that this proposal would retroactively modify 
pricing for non-NASD members using Nasdaq's INET Facility to December 
9, 2005. This proposal would permit the schedule for non-NASD members 
to mirror the schedule applicable to NASD members that became effective 
December 9, 2005, pursuant to SR-NASD-2005-147.
    The Commission finds good cause for approving the proposed rule 
change prior to the 30th day of the date of publication of the notice 
thereof in the Federal Register. The Commission notes that the proposed 
fees for non-NASD members are identical to those in SR-NASD-2005-147, 
which implemented those fees for NASD members and which became 
effective as of December 9, 2005. The Commission notes that this change 
will promote consistency in Nasdaq's fee schedule by applying the same 
pricing schedule with the same date of effectiveness for both NASD 
members and non-NASD members. Therefore, the Commission finds that 
there is good cause, consistent with Section 19(b)(2) of the Act,\8\ to 
approve the proposed change on an accelerated basis.
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    \8\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (File No. SR-NASD-2005-148), is 
approved on an accelerated basis.
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    \9\ 15 U.S.C. 78s(b)(2).

[[Page 77222]]

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    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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Jonathan G. Katz,
Secretary.
 [FR Doc. E5-8053 Filed 12-28-05; 8:45 am]

BILLING CODE 8010-01-P