Document ID: SEC-2005-0299-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc.
Posted Date: 2005-11-30T05:00Z

[Federal Register: November 30, 2005 (Volume 70, Number 229)]
[Notices]               
[Page 71873-71874]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no05-88]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52825; File No. SR-NASD-2005-127]

 
Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Modify NASD Rule 7010 To Change the Fee Structure for 
the ``Browse/Query'' Function in the Trade Reporting Service of the 
Nasdaq Market Center

November 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 November 1, 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, II 
and III below, which Items have been prepared by Nasdaq. Nasdaq has 
designated this proposal as one establishing or changing a due, fee or 
other charge imposed by Nasdaq under Section 19(b)(3)(A)(ii) of the 
Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to modify the fee structure for the ``Browse/
Query'' function in the trade reporting service of the Nasdaq Market 
Center.\5\ Nasdaq will implement the proposed rule change on November 
1, 2005.
---------------------------------------------------------------------------

    \5\ The proposed rule change applies only to NASD member firms.
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the NASD's Web 
site at http://www.nasd.com, Office of the Secretary, NASD, 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 customers using the trade reporting service of the Nasdaq 
Market Center can view a summary of their trade reporting activity by 
using the ``Browse/Query'' function of the Nasdaq Workstation.\6\ The 
legacy ``Browse/Query'' function would only display 18 records per 
request. In order to view the next 18 records, Nasdaq customers would 
have to use the ``More'' function.

[[Page 71874]]

Nasdaq currently charges customers $.288 per initial request and per 
each subsequent use of the ``More'' function. Thus, Nasdaq customers 
would incur additional incremental costs as they increased their trade 
reporting activity.
---------------------------------------------------------------------------

    \6\ The ``Browse/Query'' function is also provided in Nasdaq 
Workstation II (NWII) and application protocol interface (API) 
services. NWII and API services, however, will be retired as of 
November 30, 2005 and December 31, 2005 respectively.
---------------------------------------------------------------------------

    Nasdaq has implemented new technology that modifies the ``Browse/
Query'' function. The modified ``Browse/Query'' function has been 
renamed the ``Query'' function and each ``Query'' request now provides 
a complete summary of all trade reporting activity per request. Nasdaq 
customers no longer have to use the ``More'' function to view the next 
18 records. Under the proposed rule change, users of the new ``Query'' 
function will be charged $.50 per request.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act,\7\ in general, and with 
Section 15A(b)(5) of the Act,\8\ in particular, in that it provides for 
the equitable allocation of reasonable fees, dues, and other charges 
among members and issuers and other persons using any facility or 
system which the NASD operates or controls. Further, Nasdaq believes 
that the proposed fee structure for the new ``Query'' function is 
reasonable because the new ``Query'' function provides more information 
per request than the old ``Browse/Query'' function. Nasdaq believes the 
new fee structure is also equitable because it applies to all users of 
the ``Query'' function on an equal basis. Although the fee for the new 
``Query'' function is more than the fee for the old ``Browse/Query'' 
function, Nasdaq believes its customers will benefit from an overall 
reduction in their costs because they will not incur additional 
incremental charges to view all of their trade reporting activity.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3.
    \8\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

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

    Nasdaq does not believe that the proposed rule change will impose 
any inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become immediately effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and subparagraph 
(f)(2) of Rule 19b-4 thereunder,\10\ in that it establishes or changes 
a due, fee or other charge imposed by Nasdaq. At any time within 60 
days of the filing of such 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-NASD-2005-127 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-2005-127. 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 Section. Copies of the 
filing also will be available for inspection and copying at the 
principal office of 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-2005-127 and should be submitted on or before December 21, 
2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
[FR Doc. 05-23495 Filed 11-29-05; 8:45 am]

BILLING CODE 8010-01-P