Document ID: SEC-2007-1289-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-09-19T04:00Z

[Federal Register: September 19, 2007 (Volume 72, Number 181)]
[Notices]               
[Page 53614-53615]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19se07-131]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56390; File No. SR-NASDAQ-2007-075]

 
Self-Regulatory Organizations; the NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Fees for the VTE Terminal

September 12, 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 August 30, 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 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 VTE 
terminal to connect to the Nasdaq Market Center and to make other 
clarifying changes to the relevant rule text. Nasdaq proposes to 
implement the proposed rule change on October 1, 2007. The text of the 
proposed rule change is available at Nasdaq, the Commission's Public 
Reference Room, and 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
    The purpose of this filing is to modify fees for Nasdaq members 
using the VTE terminal (formerly the INET terminal), to move the rule 
text under existing Rule 7034 to Rule 7015, and to make other 
clarifying changes to the relevant rule text.
    The VTE terminal is a former INET protocol that is used by Nasdaq 
members to connect to, and enter orders in, The Nasdaq Market Center. 
Since Nasdaq acquired INET, VTE users have paid a $50 monthly fee for 
access to the terminal via an Internet connection (which is optional) 
and a $50 monthly minimum commission fee for users executing orders 
totaling less than 100,000 shares per month. In addition, VTE users pay 
the exchanges directly for data feeds and services provided by Nasdaq 
and other exchanges or market centers through VTE at the Commission-
approved rate that they would pay to receive the data feeds through 
other means. The data feeds provide information that is necessary for 
users to enter orders through VTE.
    Nasdaq is increasing the monthly fee for accessing the VTE terminal 
through the Internet from $50 to $100 per month per user. In addition, 
Nasdaq is increasing the monthly minimum commission fee for users 
executing orders totaling less that 100,000 shares per month from $50 
to $100 per month per user. Users will continue to be charged directly 
for Nasdaq and non-Nasdaq data feeds and services at Commission-
approved rates by the exchange or market center providing the service.
    Based on Nasdaq's operation of the VTE since it was acquired from 
INET, Nasdaq believes that the pricing changes are warranted in order 
to appropriately balance the demand for the product with increasing 
platform, overhead, and technology infrastructure costs.
    The proposed rule change also moves the text of Rule 7034 to Rule 
7015 ``Access Services'' to further consolidate access services fees in 
one rule, removes references to access alternatives no longer in use 
(dedicated FIX server and Brut Workstation), and updates the rule 
language by replacing references to ``INET Terminal'' with the term 
``VTE Terminal'' to reflect the new name of this protocol after Nasdaq 
system integration.
    In addition, the proposed rule change also eliminates from the rule 
text references to INET and the locations of data centers (because the 
relevant fees do not vary based on data center location) and INET, and 
eliminates the reference to and pricing for Instinet Portal (a product 
now available from INET's former owner, Instinet, which INET was 
supporting on a transitional basis).
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\5\ in general, and with Section 
6(b)(4) of the Act,\6\ 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 any facility or 
system which Nasdaq operates or controls. 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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    \5\ 15 U.S.C. 78f.
    \6\ 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) of the Act \7\ and

[[Page 53615]]

subparagraph (f)(2) of Rule 19b-4 thereunder \8\ 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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 Number SR-NASDAQ-2007-075 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-2007-075. 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, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. 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-2007-075 and should 
be submitted on or before October 10, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-18390 Filed 9-18-07; 8:45 am]

BILLING CODE 8010-01-P