Document ID: SEC-2006-0493-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc.
Posted Date: 2006-04-14T04:00Z

[Federal Register: April 14, 2006 (Volume 71, Number 72)]
[Notices]               
[Page 19597-19598]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ap06-109]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53617; File No. SR-NASD-2006-043]

 
Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Establish a Fee for the Brut Workstation

April 7, 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 March 31, 2006, the National Association of Securities Dealers, Inc. 
(``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``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 one establishing or changing a due, fee, or 
other charge imposed by the self-regulatory organization under section 
19(b)(3)(A)(ii) \3\ of the Act 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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq proposes to establish a fee for use of the Brut Workstation. 
Nasdaq states that it will implement the proposed rule change on April 
3, 2006.
    The text of the proposed rule change is below. Proposed new 
language is in italics.\5\
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    \5\ Changes are marked to the rule text that appears in the 
electronic NASD Manual found at http://www.nasd.com. Prior to the 

date when The NASDAQ Stock Market LLC (``NASDAQ LLC'') commences 
operations, NASDAQ LLC will file a conforming change to the rules of 
NASDAQ LLC approved in Securities Exchange Act Release No. 53128 
(January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10-131).
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* * * * *

7010. System Services

    (a) through (e) No change.
    (f) Access Services.
    (1)-(5) No change.
    (6) Brut Workstation
    Members using the Brut Workstation to access Brut will be charged a 
fee of $300 per user per month.
    (g) through (w) No Change.
* * * * *

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 proposes to institute a fee of $300 per user per month for 
Brut subscribers that access Brut through the Brut Workstation. Nasdaq 
states that the Brut Workstation is a legacy access product that the 
Brut ECN has been providing its customers for a number of years. The 
workstation is owned and operated by Sungard Trading Systems 
(``Sungard''), the former owner of Brut. Nasdaq states that after it 
purchased Brut, Nasdaq staff decided to continue to provide the service 
to Brut ECN customers until Nasdaq and Brut integrated their respective 
books. Since Brut did not incur fees from Sungard for provisioning the 
product, users of the workstation were not charged. Nasdaq states that 
Sungard recently notified Nasdaq that it plans to charge Nasdaq $300 
per workstation user per month. Nasdaq would pass along this charge to 
the current users of the Brut

[[Page 19598]]

Workstation. Nasdaq represents that it is its intention to sunset the 
Brut Workstation once Nasdaq and Brut are integrated later this year. 
Nasdaq states that this filing applies solely to members, as none of 
the non-member subscribers of Brut currently use the Brut Workstation 
and Nasdaq is not making the Brut Workstation available to subscribers 
that do not currently use it.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 15A of the Act,\6\ in general, and with 
section 15A(b)(5) of the Act,\7\ 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 any facility or 
system which the NASD operates or controls. The proposed rule change 
would pass along to subscribers a new charge incurred by Nasdaq in 
providing the Brut Workstation to Brut subscribers.
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    \6\ 15 U.S.C. 78o-3.
    \7\ 15 U.S.C. 78o-3(b)(5).
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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

    Nasdaq states that 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 is subject to section 19(b)(3)(A)(ii) of 
the Act \8\ and subparagraph (f)(2) of Rule 19b-4\9\ thereunder because 
it establishes or changes a due, fee, or other charge 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 such 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 Number SR-NASD-2006-043 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-NASD-2006-043. 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-NASD-2006-043 and should be submitted on or before May 
5, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-5549 Filed 4-13-06; 8:45 am]

BILLING CODE 8010-01-P