Document ID: SEC-2006-1657-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-12-20T05:00Z

[Federal Register: December 20, 2006 (Volume 71, Number 244)]
[Notices]               
[Page 76404-76406]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20de06-142]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54933; File No. SR-NASDAQ-2006-051]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto To Temporarily Adjust Tier Volume Limits

December 13, 2006.
    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 1, 2006, The NASDAQ Stock Market LLC (``Nasdaq'') 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 substantially prepared by Nasdaq. On December 7, 2006, 
the Exchange submitted Amendment No. 1 to the proposed rule change. 
Nasdaq has filed the proposal pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon filing with the

[[Page 76405]]

Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
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    \1\ 5 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to reduce, for the month of December 2006, the 
average daily volume tiers in Nasdaq-listed securities contained in 
Nasdaq Rule 7018(a) to qualify for certain fee and rebate levels. 
Nasdaq would implement the proposed rule change immediately. The text 
of the proposed rule change is available on Nasdaq's Web site at http://www.nasdaq.com
, at the principal office of Nasdaq, and at the 

Commission's Public Reference Room.

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 reduce, for the month of December 2006, the 
average daily volume tiers for trading and routing in Nasdaq-listed 
securities contained in Nasdaq Rule 7018(a) to qualify for certain fee 
and rebate levels. Currently, in order to qualify for a per-share 
execution fee of $0.0028, members must have an average daily volume 
through Nasdaq facilities in all securities during a particular month 
of (i) more than 30 million shares of liquidity provided and (ii) more 
than 50 million shares of liquidity accessed and/or routed. For routed 
orders, to qualify for a fee of the greater of (i) $0.0028 per share 
executed or (ii) a pass-through of all applicable access fees charged 
by electronic communications networks that charge more than $0.003 per 
share executed, a firm must have an average daily volume through Nasdaq 
facilities in all securities during the month of (i) more than 30 
million shares of liquidity provided, and (ii) more than 50 million 
shares of liquidity access and/or routed. For the month of December 
2006, Nasdaq is proposing to reduce those qualification volume tiers to 
27 million shares and 47 million shares, respectively. In addition, 
Nasdaq is also reducing for the month of December 2006 the monthly 
average daily volume tier required to obtain the $0.0025 credit rebate 
from its current 30 million share level to 27 million shares.\5\
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    \5\ In addition, Nasdaq is also making certain non-substantive 
and corrective changes to Nasdaq Rule 7018(a) to reflect, among 
other things, the recent termination of the operation of Nasdaq's 
Brut Facility.
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    Nasdaq states that the reduction is designed to respond to certain 
processing issues associated with Nasdaq's implementation of its new 
single-book execution facility that can result in inhibiting the 
ability of users to submit orders to the system and thus not reach 
their usual levels of participation that would historically entitle 
them to the most competitive fee and rebate levels. Nasdaq believes 
that a temporary reduction of the qualification tiers is appropriate 
while both Nasdaq and its users gain more familiarity with the new 
single-book trading environment.
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) of the Act,\7\ in particular, in that the proposal 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members and issuers and other persons using its 
facilities.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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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 foregoing proposed rule change is subject to Section 
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \9\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by the self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. 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.\10\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-
day period within which the Commission may summarily abrogate the 
proposal, the Commission considers the period to commence on 
December 7, 2006, the date on which the Exchange submitted Amendment 
No. 1.
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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 e-mail to rule-comments@sec.gov. Please include 

File Number SR-NASDAQ-2006-051 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-2006-051. 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 the 
filing also will be

[[Page 76406]]

available for inspection and copying at the principal office of Nasdaq. 
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-2006-
051 and should be submitted on or before January 10, 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. E6-21652 Filed 12-19-06; 8:45 am]

BILLING CODE 8011-01-P