Document ID: SEC-2006-1271-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-10-02T04:00Z

[Federal Register: October 2, 2006 (Volume 71, Number 190)]
[Notices]               
[Page 58026-58027]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc06-136]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54500; File No. SR-NASDAQ-2006-025]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto Regarding Fees for the New Nasdaq 
Workstation and Weblink ACT

September 25, 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 August 1, 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 amended the proposed rule change 
on September 20, 2006.\3\ Pursuant to Section 19(b)(3)(A)(ii) of the 
Act \4\ and Rule 19b-4(f)(2) \5\ thereunder, Nasdaq has designated the 
proposed rule change as establishing or changing a member due, fee, or 
other charge, 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, as amended, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Amendment No. 1. The effective date of the original 
proposed rule change is August 1, 2006 and the effective date of the 
amendment is September 20, 2006. For purposes of calculating the 60-
day abrogation period, the Commission considers the period to have 
commenced on September 20, 2006, the date Nasdaq filed Amendment No. 
1. See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 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 fees for the New Nasdaq Workstation 
(``NNW'') and Weblink ACT. Nasdaq will implement the proposed rule 
change on August 1, 2006. The text of the proposed rule change is 
available at the Commission's Public Reference Room, at Nasdaq, and at 
http://www.nasdaq.com.\6\

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    \6\ Changes to the proposed rule text are marked to the rule 
text thatappears in the electronic Nasdaq Manual found at 
http://www.complinet.com/nasd.com as further amended on an immediately 

effective basis by SR-NASDAQ-2006-024. Because the Nasdaq 
Workstation and Weblink ACT are also used with respect to the 
quotation, execution, and trade reporting systems operated by The 
Nasdaq Stock Market, Inc. (``Nasdaq Inc.'') with respect to non-
Nasdaq securities, Nasdaq Inc. is also filing these proposed rule 
changes as a modification to NASD Rule 7010(f). See SR-NASD-2006-
094.
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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
    Nasdaq is amending Rule 7015 to change fees associated with its 
web-based New Nasdaq Workstation (``NNW'') and Weblink ACT products. 
Since the NNW's inception as a replacement for the Nasdaq Workstation 
II (``NWII'') last year, the fee for the NNW has been $435 per user per 
month, plus $90 per month for data feeds included with the NNW, for a 
total cost of $525 per user per month. Nasdaq is now reducing the fee 
to $475 per user per month, including the cost of the data feeds 
provided with the NNW. The change is designed to enhance the 
competitiveness of the NNW in contrast to front-end applications 
provided by broker-dealers and service bureaus, and, as discussed 
below, also reflects decreasing demand for the product.
    Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is 
a Web-based application used for

[[Page 58027]]

submission of trade reports. As such, as Nasdaq begins to operate as a 
national securities exchange, Weblink ACT provides basic front-end 
access to the Trade Reporting Facility (``TRF'') operated by Nasdaq and 
the National Association of Securities Dealers, Inc. (``NASD''),\7\ as 
well as access to ACT functionality still offered by Nasdaq Inc. under 
authority delegated by NASD.
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    \7\ Nasdaq expects that, consistent with current practice, most 
NASD members seeking access to the TRF would use a proprietary 
front-end system developed by the broker-dealer or a product offered 
by a service bureau. Weblink ACT is designed as a basic front-end 
system for low volume users.
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    Since the introduction of NNW and Weblink ACT, a number of former 
NWII users have opted to move to Weblink ACT rather than NNW, 
reflecting a desire to use these Web-based products exclusively for 
trade reporting, rather than active trading. Accordingly, Nasdaq 
proposes to increase the comparatively low fees for Weblink ACT to 
ensure that, as between NNW and Weblink ACT, fees are allocated 
appropriately to allow recovery of Nasdaq's costs. Specifically, the 
current $150 fee for Weblink ACT users that report a daily average of 
20 or fewer trades during a month is being raised to $200, while the 
$300 fee for higher volume users is being increased to $375.
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 the proposed rule change 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system which Nasdaq operates or controls. The proposed rule 
change reflects demand patterns for NNW and Weblink ACT and is designed 
to ensure that as between the products, fees are allocated 
appropriately to allow recovery of Nasdaq's costs.
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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, as amended.

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 proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \10\ and Rule 19b-4(f)(2) thereunder,\11\ in 
that the proposed rule change establishes or changes a member due, fee, 
or other charge. 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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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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-2006-025 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2006-025. 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 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-2006-025 and should be submitted on or before 
October 23, 2006.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-16115 Filed 9-29-06; 8:45 am]

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