Document ID: SEC-2006-1028-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-08-09T04:00Z

[Federal Register: August 9, 2006 (Volume 71, Number 153)]
[Notices]               
[Page 45590-45591]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09au06-132]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54264; File No. SR-NASDAQ-2006-015]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Fees Associated With the Use of the National Association of 
Securities Dealers, Inc.'s Web Central Registration Depository System

August 2, 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 July 17, 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 prepared by Nasdaq. Nasdaq has designated this proposal as 
establishing or changing a due, fee, or other charge imposed by Nasdaq 
pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \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 implement fees for Nasdaq members that are not 
members of the National Association of Securities Dealers, Inc. 
(``NASD''), in connection with such members' use of NASD's Web Central 
Registration Depository (``CRD'') system. Nasdaq will implement the 
proposed rule change immediately. The text of the proposed rule change 
is below. Proposed new language is italicized.
* * * * *

7003. Registration and Processing Fees

    The following fees will be collected and retained by NASD via the 
Web CRD registration system for the registration of associated persons 
of Nasdaq members that are not also NASD members:
    (1) $85 for each initial Form U4 filed for the registration of a 
representative or principal;
    (2) $95 for the additional processing of each initial or amended 
Form U4 or Form U5 that includes the initial reporting, amendment, or 
certification of one or more disclosure events or proceedings;
    (3) $30 annually for each of the member's registered 
representatives and principals for system processing;
    (4) $13 for processing and posting to the CRD system each set of 
fingerprints submitted by the member, plus a pass-through of any other 
charge imposed by the United States Department of Justice for 
processing each set of fingerprints;
    (5) $13 for processing and posting to the CRD system each set of 
fingerprint results and identifying information that has been processed 
through a self-regulatory organization other than NASD; and
    (6) a $75 session fee for each individual who is required to 
complete the Regulatory Element of the Continuing Education 
Requirements pursuant to Nasdaq Rule 1120.
* * * * *

[[Page 45591]]

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
    The purpose of the proposed rule change is to adopt fees associated 
with the use of NASD's Web CRD system.\5\ The proposed fees are similar 
to those fees charged by other SROs that use NASD's Web CRD.\6\ Members 
will pay the NASD fees associated with Web CRD directly to NASD through 
Web CRD.
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    \5\ Use of NASD's Web CRD system by Nasdaq members is required 
by Nasdaq Rule 1013. Fees for the use of Web CRD by Nasdaq members 
that are also NASD members are assessed by NASD under Schedule A, 
Section 4 of the NASD By-Laws. This filing will enable the NASD to 
collect certain fees from Nasdaq members that are not NASD members. 
To the extent that such Nasdaq members are already members of 
another self-regulatory organization (``SRO'') that participates in 
Web CRD, these fees are already being assessed by NASD under the 
authority of such other SRO. Accordingly, this filing will not 
result in the imposition of duplicative fees by NASD.
    \6\ See Securities Exchange Act Release Nos. 53688 (April 20, 
2006), 71 FR 24885 (April 27, 2006) (SR-Phlx-2006-24); 51641 (May 2, 
2005), 70 FR 24155 (May 6, 2005) (SR-PCX-2005-49); 48066 (June 19, 
2003), 68 FR 38409 (June 27, 2003) (SR-AMEX-2003-49); and 45112 
(November 28, 2001), 66 FR 63086 (December 4, 2001) (SR-NYSE-2001-
47).
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    Specifically, members will pay: (a) An NASD CRD Processing Fee of 
$85 for each initial U4 filed; (b) an NASD Disclosure Processing Fee of 
$95 for each initial or amended U4 or U5 that includes the initial 
reporting, amendment, or certification of one or more disclosure events 
or proceedings; (c) an NASD Annual System Processing Fee of $30; (d) a 
$75 session fee for individuals required to complete the Regulatory 
Element of the Continuing Education Requirements under Nasdaq Rule 
1120; (e) a fingerprinting fee for submission of fingerprints to NASD 
equal to $13 plus a pass-through of the applicable Department of 
Justice fee (currently $22 for a first or a third submission ); and (f) 
a $13 fee for processing fingerprint results where the member had 
prints processed through an SRO other than the NASD. NASD will process 
the fingerprint cards using Web CRD, in accordance with Nasdaq's 
Fingerprinting Plan.\7\
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    \7\ Securities Exchange Act Release No. 53908 (May 31, 2006), 71 
FR 33007 (June 7, 2006).
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act \8\ in general, and with Section 
6(b)(4) of the Act \9\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members and issuers and other persons using Nasdaq's facilities.
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    \8\ 15 U.S.C. 78f.
    \9\ 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 rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) \10\ of the Act and paragraph (f)(2) of Rule 19b-4 
thereunder,\11\ in that it establishes or changes a due, fee, or other 
charge applicable to Nasdaq members.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
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    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.

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-2006-015 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-2006-015. 
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 such 
filing also will be available for inspection and copying at the 
principal office of the 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-NASDAQ-2006-015 and should be submitted on or before 
August 30, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-12892 Filed 8-8-06; 8:45 am]

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