Document ID: SEC-2008-0848-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market LLC
Posted Date: 2008-06-23T04:00Z

[Federal Register: June 23, 2008 (Volume 73, Number 121)]
[Notices]               
[Page 35430-35432]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23jn08-89]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57973; File No. SR-NASDAQ-2008-050]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
and Amendment No. 1 Thereto Regarding Nasdaq Last Sale Data Feeds

June 16, 2008.
    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 June 2, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the Exchange. 
On June 12, 2008, Nasdaq submitted Amendment No. 1 to the proposed rule 
change. The Exchange has designated the proposed rule change as a 
``non-controversial'' rule change pursuant to Section 19(b)(3)(A) of 
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ 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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to establish a one-month free service for those 
data feeds for which Nasdaq has separately proposed fees on a four-
month pilot basis in Amendment No. 2 to SR-NASDAQ-2006-060.\5\ 
Specifically, Nasdaq is proposing to offer the ``Nasdaq Last Sale for 
Nasdaq'' and ``Nasdaq Last Sale for NYSE/Amex'' data feeds (``Nasdaq 
Last Sale Data Feeds'') containing last sale activity in U.S. equities 
within the Nasdaq Market Center and reported to the jointly-operated 
FINRA/Nasdaq Trade Reporting Facility (``FINRA/Nasdaq TRF'') during the 
month of June 2008 without charge to data distributors. The 
availability of the products following June 2008 will be subject to 
Commission approval of the fees proposed in SR-NASDAQ-2006-060.\6\ 
Accordingly, SR-NASDAQ-2008-050 does not propose fees or charges and 
will be operative only for June 2008. There is no proposed rule text.
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    \5\ See Securities Exchange Act Release No. 57965 (June 16, 
2008).
    \6\ Id.
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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, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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
    Currently, investors that wish to view market data to monitor their 
portfolios generally have two choices: (1) Pay for real-time market 
data or (2) use free data that is 15 to 20 minutes delayed. In SR-
NASDAQ-2006-060, Nasdaq has proposed to offer access to real-time 
market data to data distributors for a capped fee, enabling those 
distributors to disseminate the data via the Internet and television at 
no cost to millions of internet users and television viewers. In 
Amendment No. 2 to SR-NASDAQ-2006-060, Nasdaq proposes to charge 
certain fees described in that filing for a four-month pilot period.\7\ 
In SR-NASDAQ-2008-050, Nasdaq proposes to offer free of charge during 
the month of June 2008 the same data feeds for which Nasdaq has 
proposed fees on a four-month pilot basis in SR-NASDAQ-2006-060. The 
availability of the products following June 2008 will be subject to 
Commission approval of the fees proposed in SR-NASDAQ-2006-060.
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    \7\ Id.
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    Nasdaq proposes to create two separate ``Level 1'' products 
containing last sale activity within the Nasdaq market and reported to 
the jointly-operated FINRA/Nasdaq TRF. First, the Nasdaq Last Sale for 
Nasdaq data product is a real-time data feed that provides real-time 
last sale information including execution price, volume, and time for 
executions occurring within the Nasdaq system as well as those reported 
to the FINRA/Nasdaq TRF. Second, Nasdaq will also create the Nasdaq 
Last Sale for NYSE/Amex data product that provides real-time last sale 
information

[[Page 35431]]

including execution price, volume, and time for NYSE- and Amex-
securities executions occurring within the Nasdaq system as well as 
those reported to the FINRA/Nasdaq TRF.
    Nasdaq developed these product proposals in consultation with 
industry members and also market data vendors and purchasers. These 
products are designed to meet the needs of current and prospective 
subscribers that do not need or are unwilling to pay for the 
consolidated data provided by the SIP Level 1 products. Nasdaq also 
proposes to ease the administrative burden of market data vendors that 
are receiving and using data in new ways, particularly those that 
provide the data via the Internet and various television media. Nasdaq 
believes that providing investors with new options for receiving market 
data, as Nasdaq proposes, was a primary goal of the market data 
amendments adopted in Regulation NMS. Nasdaq believes that by offering 
the data feeds without charge during the month of June 2008, it will 
demonstrate the value of these products to data distributors and 
investors.
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)(5) of the Act,\9\ in particular, in that the proposal is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest. In adopting Regulation NMS, 
the Commission granted self-regulatory organizations and broker-dealers 
increased authority and flexibility to offer new and unique market data 
to the public. It was believed that this authority would expand the 
amount of data available to consumers, and also spur innovation and 
competition for the provision of market data. Nasdaq believes that the 
Nasdaq Last Sale Data Feeds proposed here appear to be precisely the 
sort of market data product that the Commission envisioned when it 
adopted Regulation NMS.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
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    Nasdaq has concluded that offering these products without charge 
for a one-month period will help to demonstrate the value of the 
products to distributors and investors.

B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will impose 
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

    Three comment letters were filed regarding SR-NASDAQ-2006-060 as 
originally published for comment. Nasdaq responded to these comments in 
a letter dated December 13, 2007. Both the comment letters and Nasdaq's 
response are available on the Commission's Web site at http://
www.sec.gov/comments/sr-nasdaq-2006-060/nasdaq2006060.shtml.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change does not: (1) Significantly 
affect the protection of investors or the public interest; (2) impose 
any significant burden on competition; and (3) become operative for 30 
days after the date of this filing, or such shorter time as the 
Commission may designate, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\12\ 
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because such waiver 
will allow Nasdaq to distribute free of charge its Nasdaq Last Sale 
Data Feeds for the month of June 2008 without further delay. For this 
reason, the Commission designates the proposed rule change to be 
operative upon filing with the Commission.\14\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to 
the Commission written notice of its intent to file the proposed 
rule change, along with a brief description and text of the proposed 
rule change, at least five business days prior to the date of filing 
of the proposed rule change, or such shorter time as designated by 
the Commission. The Exchange has requested the Commission to waive 
this five-day pre-filing notice requirement. The Commission hereby 
grants this request.
    \13\ Id.
    \14\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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.\15\
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    \15\ 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-
day period within which the Commission may summarily abrogate the 
proposal, the Commission considers the period to commence on June 
16, 2008, the date on which the Exchange submitted Amendment No. 1.
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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-2008-050 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2008-050. 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

[[Page 35432]]

available for inspection and copying in the Commission's Public 
Reference Room, 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 the Exchange. 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-2008-050 and should 
be submitted on or before July 14, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-14104 Filed 6-20-08; 8:45 am]

BILLING CODE 8010-01-P