Document ID: SEC-2012-0023-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2012-01-09T05:00Z

[Federal Register Volume 77, Number 5 (Monday, January 9, 2012)]
[Notices]
[Pages 1125-1126]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-94]

[[Page 1125]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66078; File No. SR-NASDAQ-2011-173]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Fees for the Trading and Compliance Data Package

January 3, 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 December 23, 2011, 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 for trading and compliance 
reports available to member firms via NasdaqTrader.com Trading and 
Compliance Data Package under NASDAQ Rule 7021.
    The text of the proposed rule change is below. Proposed new 
language is italicized; proposed deletions are in brackets.

7021. NasdaqTrader.com Trading and Compliance Data Package Fee

    The charge to be paid by a Nasdaq Member for each entitled user 
receiving Nasdaq Trading and Compliance Data Package via 
NasdaqTrader.com is [$130]$175 per month (monthly maximum of 25 
Historical Research Reports) or [$160]$225 per month (monthly maximum 
of 100 Historical Research Reports). The Nasdaq Trading and Compliance 
Data Package includes:
(a)-(c) No Change
    Nasdaq may modify the contents of the Nasdaq Trading and Compliance 
Data Package from time to time based on subscriber interest.
* * * * *

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

1. Purpose
    NASDAQ is proposing to modify the fees for trading and compliance 
reports available to member firms via NasdaqTrader.com Trading and 
Compliance Data Package under NASDAQ Rule 7021 (``Data Package''). 
[sic] Data Package allows member firms to obtain information regarding 
their own historical quoting and trading activity on NASDAQ. Data 
Package also provides member firms with information concerning their 
compliance with NASDAQ and FINRA rules. In this regard, member firms 
that subscribe to the Data Package can obtain the following reports: 
(1) Monthly Compliance Report Cards, which outline firm's own 
compliance with various FINRA rules; (2) Monthly Summaries, which 
provide monthly trading volume statistics for the top 50 market 
participants broken down by industry sector, security or type of 
trading; and (3) Historical Research Reports, which provide a variety 
of historical trading data such as a market maker's quote updates, 
order activity, and detailed trade reporting information. Additionally, 
subscribers can elect to receive the detailed trade report (Equity 
Trade Journal) via a secure FTP dissemination option. These reports 
offered by NASDAQ are based on the subscribing member's historical 
trade information taken from NASDAQ and the FINRA/NASDAQ Trade 
Reporting Facility, thus providing firms with a comprehensive 
compliance picture.
    Use of this service is voluntary and member firms have the option 
of subscribing to whichever level they choose. The Data Package is 
offered in two levels: the ``basic'' level, which has a fee of $130 per 
month, allows access to a maximum of 25 Historical Research Reports per 
month; and the ``premium'' level, which has a fee of $160 per month, 
allows access to a maximum of 100 Historical Research Reports per 
month. These fees have not increased since June 2006, \3\ 
notwithstanding that NASDAQ subsequently developed and implemented 
enhancements to the service.\4\
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    \3\ Securities Exchange Act Release No. 54002 (June 16, 2006), 
71 FR 36143 (June 23, 2006) (SR-NASD-2006-072) (increasing each of 
the fees by $30 per month); see also Securities Exchange Act Release 
No. 54260 (August 1, 2006), 71 FR 45084 (August 8, 2006) (SR-NASDAQ-
2006-024).
    \4\ Since 2006, the Data Package has been updated to include 
necessary enhancements based on new market structure rules, as well 
as new fields added to the Equity Trade Journal based on new 
functionality offered by the FINRA/NASDAQ Trade Reporting Facility. 
These enhancements, in conjunction with three new compliance 
reports, have added significant value to the Data Package. In 
addition, the ``front-end'' of the service has been redesigned to 
simplify report requests and increase usability.
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    In order to help cover the costs associated with the maintenance of 
the Data Package service, as well as the cost of implementing 
enhancements to the service, NASDAQ proposes to increase the ``basic'' 
level subscription fee from $130 to $175 per month, and increase the 
``premium'' level subscription fee from $160 to $225 per month. NASDAQ 
anticipates that the proposed fees may provide NASDAQ with a profit, in 
addition to covering costs discussed above.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\5\ in general, and Section 
6(b)(4) of the Act,\6\ 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 proposed fees are reasonable because NASDAQ has made several 
enhancements to the service since it last increased fees assessed for 
the service in June 2006. As a consequence of adding these 
enhancements, 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,

[[Page 1126]]

programming to user specifications, and administering the service, 
among other things, and may provide NASDAQ with a profit. NASDAQ also 
believes that the fees are equitably allocated, since use of the Data 
Package service is voluntary and the subscription fees will be imposed 
on all purchasers equally based on the number of users and the level of 
service subscribed.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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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 \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\8\ 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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    \7\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \8\ 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-2011-173 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-2011-173. 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-2011-173, and should be submitted on or before 
January 30, 2012.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-94 Filed 1-6-12; 8:45 am]
BILLING CODE 8011-01-P