Document ID: SEC-2007-0117-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDQ Stock Market LLC
Posted Date: 2007-01-25T05:00Z

[Federal Register: January 25, 2007 (Volume 72, Number 16)]
[Notices]               
[Page 3452-3453]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ja07-87]                         

[[Page 3452]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55137; File No. SR-NASDAQ-2006-068]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Pricing for Nasdaq Members Using the Nasdaq Market Center

January 19, 2007.
    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 28, 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. 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 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).
    \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 modify the pricing for its members using the 
Nasdaq Market Center. Nasdaq proposes to implement the rule change on 
January 2, 2007. The text of the proposed rule change is available at 
Nasdaq, the Commission's Public Reference Room, and http://nasdaq.complinet.com/file_store/pdf/rulebooks/SR-NASDAQ-2006-068.pdf.
 

\5\
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    \5\ Changes to the text of the proposed rule change are marked 
to the rule text that appears in the electronic Nasdaq Manual found 
at nasdaq.complinet.com/nasdaq/display/index.html, as further 
proposed to be amended by Securities Exchange Act Release No. 55042 
(Jan. 4, 2007), 72 FR 1569 (Jan. 12, 2007) (SR-NASDAQ-2006-055).
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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
    This filing adopts a simplified pricing schedule for trading 
Nasdaq-listed securities through the Nasdaq Market Center. As is 
currently the case, the fee schedule reflects the volume of a member's 
use of the Nasdaq Market Center and also the ITS/CAES and Inet systems 
operated by Nasdaq and its affiliates as facilities of NASD, in 
determining applicable fees.\6\ Order execution and routing fees will 
be as follows:
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    \6\ The consideration of volumes through ITS/CAES and Inet is a 
function of the phased transition of Nasdaq from an operator of NASD 
facilities to a separate national securities exchange. As such, NASD 
fee schedules will be amended to remove all references to Nasdaq at 
or shortly after the time when Nasdaq begins to trade non-Nasdaq 
exchange-listed securities as an exchange. NASD is submitting a 
comparable filing to establish fees for non-Nasdaq exchange-listed 
securities, which likewise considers trading volumes through the 
Nasdaq Market Center. See File No. SR-NASD-2006-137.
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     $0.0027 per share executed for market participants that 
(i) Add more than 30 million shares of liquidity per day during the 
month and route or remove more than 50 million shares of liquidity per 
day during the month, or (ii) add more than 20 million shares of 
liquidity per day during the month and route or remove more than 60 
million share of liquidity per day during the month;
     $0.0028 per share executed for market participants that 
add more than 20 million shares of liquidity per day during the month 
and route or remove more than 35 million shares of liquidity during the 
month;
     $0.003 per share executed for other market participants;
     $0.003 per share executed for routed orders that do not 
attempt to execute in the Nasdaq Market Center prior to routing;
     A liquidity provider credit of $0.0025 per share executed 
for market participants adding more than 30 million shares of liquidity 
per day during the month, and a credit of $0.002 for other market 
participants; and
     As is currently the case for Nasdaq-listed securities, a 
fee of 0.1% of total transaction cost, and no liquidity provider 
credit, for executions against quotes/orders in the Nasdaq Market 
Center at less than $1.00 per share.
    The proposed rule change also updates the text of Rule 7018 by 
replacing references to the ``Nasdaq Facilities'' with the term 
``Nasdaq Market Center'' to reflect Nasdaq system integration, and by 
deleting certain obsolete references to Brut and Inet.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with 
Sections 6(b)(4) of the Act,\8\ 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. Nasdaq believes that the fees are reasonably allocated 
among members based on their usage of the trading systems operated by 
Nasdaq, and are generally consistent with fees charged by other market 
centers for comparable services.
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    \7\ 15 U.S.C. 78f.
    \8\ 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 \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \10\ 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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

[[Page 3453]]

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-2006-068 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-2006-068. 
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 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-2006-068 and should be submitted on or before 
February 15, 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. E7-1105 Filed 1-24-07; 8:45 am]

BILLING CODE 8011-01-P