Document ID: SEC-2007-1426-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-10-12T04:00Z

[Federal Register: October 12, 2007 (Volume 72, Number 197)]
[Notices]               
[Page 58142-58143]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc07-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56617; File No. SR-NASDAQ-2007-083]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Increase the Annual Membership Fee for Nasdaq Members

October 4, 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 October 1, 2007, 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 the Exchange. Nasdaq filed this 
proposed rule change pursuant to section 19(b)(3)(A)(ii) of the Act \3\ 
and Rule 19b-4(f)(2) \4\ thereunder, which renders it 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 increase the annual membership fee for Nasdaq 
members under Nasdaq Rule 7001. The text of the proposed rule change is 
available at Nasdaq, the Commission's Public Reference Room, and 
Nasdaq's Web site, http://www.nasdaq.com.

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 increasing its annual membership fee, which is assessed 
on all Nasdaq members as of a date determined by Nasdaq in December of 
each year, from $1,200 to $3,000 per year. The fee had initially been 
set at a level to ease the transition of the Nasdaq Market Center's 
status as a facility of the Financial Industry Regulatory Authority, 
Inc. (f/k/a the National Association of Securities Dealers, Inc.) to a 
facility of a new self-regulatory organization (``SRO''). Now that 
Nasdaq has an established membership base, Nasdaq believes that the fee 
increase is warranted to ensure that its annual membership fee funds a 
greater portion of the cost of regulating the Nasdaq market. Nasdaq 
believes that even with the fee increase, the cost of Nasdaq membership 
is generally lower than the cost of membership in other SROs.\5\ In 
this regard, it is particularly notable that unlike other SROs, Nasdaq 
does not charge annual registration fees for each of a firm's 
registered representatives.
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    \5\ See, e.g., New York Stock Exchange Price List 2007 at http://www.nyse.com/pdfs/2007pricelist.pdf
 (itemizing numerous 

registration, regulation, and trading rights fees); NASD By-Laws, 
Schedule A, Section 1 at http://nasd.complinet.com/nasd/display/display.html?rbid=1189&element_id=1159000126
; Chicago Stock 

Exchange Fees and Assessments at http://wallstreet.cch.com/CHXtools/PlatformViewer.asp?SelectedNode=chp_1_1&manual=/CHX/Admin/
 chx-

feesandassessments/.
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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,\6\ in general, and with section 
6(b)(4) of the Act,\7\ in particular, in that it provides for an 
equitable allocation of reasonable dues, fees, and other charges among 
its members and issuers and other persons using any facility or system 
which Nasdaq operates or controls. Nasdaq believes that an increased 
annual membership fee is reasonable and equitable method of ensuring 
that its annual membership fee funds a greater portion of the cost of 
regulating the Nasdaq market, and that the overall cost of Nasdaq 
membership is reasonable as compared with the cost of membership in 
other SROs.
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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 has become effective upon filing 
with the Commission pursuant to section 19(b)(3)(A)(ii) of the Act \8\ 
and Rule 19b-4(f)(2) thereunder,\9\ in that the proposed rule change 
establishes or changes a member due, fee, or other charge imposed by 
the SRO. 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 
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 No. SR-NASDAQ-2007-083 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-2007-083. This 
file number should be included on the subject line if e-mail is used. 
To help the

[[Page 58143]]

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, 100 F Street, NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. Copies of such 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-2007-083 and should be submitted 
on or before November 2, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-20120 Filed 10-11-07; 8:45 am]

BILLING CODE 8011-01-P