Document ID: SEC-2008-1182-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2008-08-26T04:00Z

[Federal Register: August 26, 2008 (Volume 73, Number 166)]
[
Notices]               
[Page 50382]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26au08-104]                         

[[Page 50382]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58392; File No. SR-NASDAQ-2008-019]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 

Approving Proposed Rule Change as Modified by Amendment No. 1 Thereto 

To Remove From the Nasdaq Rules Fee Provisions Relating to Nasdaq's 

Mutual Fund Quotation Service

August 20, 2008.

    On March 12, 2008, The NASDAQ Stock Market LLC (``Nasdaq'') filed 

with the Securities and Exchange Commission (``Commission''), pursuant 

to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 

\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to remove from 

the Nasdaq rulebook references to the fees charged by Nasdaq in 

connection with its Mutual Fund Quotation Service (``MFQS''). On July 

3, 2008, Nasdaq filed Amendment No. 1 to the proposed rule change. The 

proposed rule change, as amended, was published for comment in the 

Federal Register on July 14, 2008.\3\ The Commission received no 

comments regarding the proposal. This order approves the proposed rule 

change, as modified by Amendment No. 1.

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    \1\ 15 U.S.C. 78s(b)(1).

    \2\ 17 CFR 240.19b-4.

    \3\ See Securities Exchange Act Release No. 58102 (July 3, 

2008), 73 FR 40410.

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    Through the MFQS, Nasdaq collects price data for mutual funds, 

money market funds, and unit investment trusts.\4\ This price data 

includes information such as net asset value, offer/market price, and 

capital gains distributions.\5\ Price data may be submitted to Nasdaq 

by either the fund itself, or by a third-party service facilitator, 

such as a pricing agent.\6\ This pricing data is then transmitted to 

print media and/or market data vendors, depending on the level of 

service for which the fund qualifies.\7\ The data interface for the 

MFQS is separate from the Nasdaq trading system interface.\8\

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    \4\ See MFQS User Guide at www.nasdaqtrader.com.

    \5\ Id.

    \6\ Id.

    \7\ Id.

    \8\ See e-mail from Alex Kogan, Associate General Counsel, 

Nasdaq, to Andrew Madar, Attorney-Advisor, Commission, dated August 

15, 2008.

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    Nasdaq Rule 7033 (a) through (d) sets forth the fees that Nasdaq 

charges money market funds, mutual funds, and unit investment trusts 

for participating in the MFQS. Nasdaq Rules 7019(b) and 7033(e) set 

forth the distribution and access fees that Nasdaq charges for MFQS 

information, which is transmitted via the Mutual Funds Dissemination 

Service (``MFDS''). Nasdaq proposes to delete Rule 7033 in its entirety 

from its rulebook, and the portion of Rule 7019(b) that relates to MFQS 

fees.

    The Commission has carefully reviewed the proposed rule change and 

finds that the proposed rule change is consistent with the requirements 

of the Act and the rules and regulations thereunder applicable to a 

national securities exchange.\9\ The Commission believes that it is 

reasonable for Nasdaq to delete the portion of Rule 7019(b) that 

relates to MFQS fees, and Rule 7033 in its entirety as, based on 

representations made by Nasdaq, neither the MFQS nor the MFDS appear to 

be facilities of a national securities exchange within the meaning of 

the Act. Removing these provisions is thus consistent with the 

requirements of Section 6(b) of the Act,\10\ as the fees charged by 

Nasdaq in connection with the MFQS do not fall within the scope of the 

rules that must be filed with the Commission pursuant to Section 

19(b)(1) of the Act \11\ and Rule 19b-4 thereunder.\12\

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    \9\ In approving this proposed rule change, the Commission has 

considered the proposed rule's impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f).

    \10\ 15 U.S.C. 78f(b).

    \11\ 15 U.S.C. 78s(b)(1).

    \12\ 17 CFR 240.19b-4.

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    If, however, Nasdaq were to propose to tie pricing for the MFQS or 

the MFDS to an exchange activity, or otherwise modify the MFQS or MFDS 

such that they fall within the definition of facility of an exchange in 

the Act,\13\ Nasdaq would have to file a proposed rule change with the 

Commission.

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    \13\ See 15 U.S.C. 78c(a)(2).

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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 

that the proposed rule change (SR-NASDAQ-2008-019), as modified by 

Amendment No. 1, be, and it hereby is, approved.

    For the Commission, by the Division of Trading and Markets, 

pursuant to delegated authority.\14\

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    \14\ 17 CFR 200.30-3(a)(12).

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Florence E. Harmon,

Acting Secretary.

[FR Doc. E8-19784 Filed 8-25-08; 8:45 am]

BILLING CODE 8010-01-P