Document ID: SEC-2012-0215-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market LLC
Posted Date: 2012-02-07T05:00Z

[Federal Register Volume 77, Number 25 (Tuesday, February 7, 2012)]
[Notices]
[Pages 6164-6165]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2681]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66288; File No. SR-NASDAQ-2012-017]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Modify Fees Assessed for Subscription to WebLink ACT under Rule 7015(e)

February 1, 2012.
    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 January 24, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange''), 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 prepared by the Exchange. 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 the 
Substance of the Proposed Rule Change

    NASDAQ is proposing to modify the fees assessed for subscription to 
WebLink ACT under NASDAQ Rule 7015(e). NASDAQ will implement the 
proposed fees on February 1, 2012.
    The text of the proposed rule change is below. Proposed new 
language is italicized; proposed deletions are in brackets.

7015. Access Services

    The following charges are assessed by Nasdaq for connectivity to 
systems operated by NASDAQ, including the Nasdaq Market Center, the 
FINRA/NASDAQ Trade Reporting Facility, and FINRA's OTCBB Service. The 
following fees are not applicable to the NASDAQ Options Market LLC. For 
related options fees for Access Services refer to Rule 7053.
    (a)-(d) No change.
    (e) Specialized Services Related to FINRA/NASDAQ Trade Reporting 
Facility

------------------------------------------------------------------------
 
------------------------------------------------------------------------
CTCI fee..................................  $575/month.
WebLink ACT or Nasdaq Workstation Post      [$375.00]$425/month (full
 Trade.                                      functionality) or
                                            [$200.00]$225/month (up to
                                             an average of twenty
                                             transactions per day each
                                             month) (For the purposes of
                                             this service only, a
                                             transaction is defined as
                                             an original trade entry,
                                             either on trade date or as-
                                             of transactions per month.)
ACT Workstation...........................  $525/logon/month.
------------------------------------------------------------------------

    (f)-(h) 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, the Exchange 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. The Exchange 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 the fees assessed under Rule 7015(e) 
for WebLink ACT. WebLink ACT, also referred to as Nasdaq Workstation 
Post Trade, is a web-based application used for submission of trade 
reports. WebLink ACT provides basic front-end access to the Trade 
Reporting Facility (``TRF'') operated by NASDAQ and the Financial 
Industry Regulatory Authority, Inc. (``FINRA''),\3\ FINRA's OTC 
Reporting Facility, as well as access to ACT functionality still 
offered by NASDAQ under authority delegated by FINRA.
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    \3\ NASDAQ notes that most FINRA members seeking access to the 
TRF use a proprietary front-end system developed by the broker-
dealer or a product offered by a service bureau. WebLink ACT is 
designed as a basic front-end system for low volume users.
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    NASDAQ proposes to increase the monthly fee assessed for greater 
than twenty trades per day by $50, so that the fee will be $425, and 
increase the monthly fee assessed for less than twenty trades a day by 
$25, so that the

[[Page 6165]]

fee will be $225. NASDAQ notes that the WebLink ACT fees have not 
increased since September 2006.\4\ Over that time, NASDAQ has 
experienced rising infrastructure and support costs associated with the 
service, including the addition of useful enhancements. For example, 
NASDAQ added two new additional levels of permissions, for a total of 
three (i.e., Full Access, Clearing-Only Access and Read-Only Access), 
which allows a subscribing member firm to better tailor the 
subscription commensurate with the role of the intended user. NASDAQ 
also added a ``Match'' feature to the trade scan window in order to 
provide contra parties with a matching trade entry to keep for their 
records.\5\ Another enhancement NASDAQ made to WebLink ACT is the 
addition of three new WebLink scans. The Eligibility scan allows 
customers to look up a symbol or CUSIP to check whether it is eligible 
for reporting to ACT. The Clearing scan allows customers to look up a 
firm and see their clearing firm or whether they are self clearing. The 
AGU/QSR scan provides a list of all the Automatic Give Up and Qualified 
Service Representative agreements the customer has on file and with 
which firm.
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    \4\ Securities Exchange Act Release No. 54500 (September 25, 
2006), 71 FR 58026 (October 2, 2006) (SR-NASDAQ-2006-025) 
(increasing both the monthly fee assessed for greater than twenty 
trades per day by $75 and the monthly fee assessed for less than 
twenty trades a day by $50).
    \5\ This offers an alternative to the ``Accept Trade'' action, 
which does not give contra parties a copy of the entry, and provides 
the contra the ability to edit the trade record.
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    Given the increased costs incurred since NASDAQ last increased its 
fee in September 2006, NASDAQ believes that it is appropriate to now 
increase the fees assessed for this service to allow recovery of 
NASDAQ's costs. NASDAQ anticipates that the proposed fees may provide 
NASDAQ with a profit, in addition to covering costs.
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 Section 
6(b)(4) of the Act,\7\ in particular, because it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members and issuers and other persons using any facility or system that 
NASDAQ operates or controls, and it does not unfairly discriminate 
between customers, issuers, brokers or dealers. NASDAQ believes that 
the proposal constitutes an equitable allocation of fees because all 
similarly-situated member firms would be charged the same amount. In 
addition, access to NASDAQ will continue to be offered on fair and non-
discriminatory terms.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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    NASDAQ believes that the proposal is reasonable because the fee 
increase will realign the cost of administering and enhancing the 
service with the revenue generated by the fee, which have diverged 
since the fee was last increased in September 2006. As a consequence of 
adding enhancements, such as those noted above, the value of the 
service has incrementally increased over time and NASDAQ believes that 
it is appropriate to now raise the fees to better align them with the 
increased value of the service. In addition, NASDAQ believes that the 
proposed fees will cover the costs associated with responding to 
customer requests, configuring NASDAQ's systems, programming to user 
specifications, and administering the service, among other things, and 
may provide NASDAQ with a profit.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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, as amended.

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 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\ At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(a)(ii). [sic]
    \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 email to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2012-017 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-2012-017. This 
file number should be included on the subject line if email 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 on 
official business days between the hours of 10 a.m. and 3 p.m. Copies 
of such filing also will be available for inspection and copying at the 
principal offices 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-2012-017, and should be submitted on or before 
February 28, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2681 Filed 2-6-12; 8:45 am]
BILLING CODE 8011-01-P