Document ID: SEC-2008-1215-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2008-09-04T04:00Z

[Federal Register: September 4, 2008 (Volume 73, Number 172)]
[Notices]               
[Page 51670-51672]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04se08-70]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58435; File No. SR-NASDAQ-2008-070]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Fees and Credits for Members Using the Nasdaq Crossing 
Network

August 27, 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 August 15, 2008, 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. Pursuant to Section 19(b)(3)(A)(ii) 
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ Nasdaq has 
designated this proposal as establishing or changing a due, fee, or 
other charge, which renders the proposed rule change effective upon 
filing. This rule proposal, which is effective upon filing with the

[[Page 51671]]

Commission, shall become operative on September 1, 2008.
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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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    The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of the [sic] 
Substance of the Proposed Rule Change

    Nasdaq is adopting a fee and credit schedule for the Nasdaq 
Crossing Network.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are in brackets [sic].\5\
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    \5\ Changes are marked to the rule text that appears in the 
electronic Nasdaq Manual found at http://nasdaq.complinet.com.
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7018. Nasdaq Market Center Order Execution and Routing
    (a)-(e) No change.
    (f) Crossing Network

------------------------------------------------------------------------
All orders executed in the Nasdaq Crossing
                  Network                      No charge for execution
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Credit for eligible executions through the  $0.0010 per share
 Crossing Network from September 1, 2008
 through September 30, 2008.
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    For the purposes of this subsection ``eligible executions'' are all 
executions of trades through the Nasdaq Crossing Network other than 
those executions that have the same market participant on both sides of 
the trade.
    (f)-(h) Current subsections (f) through (h) will be renumbered as 
(g) through (i) without other modification.
* * * * *

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 adopting a fee and credit schedule for the Nasdaq 
Crossing Network. The Commission approved the Nasdaq Crossing Network 
on July 5, 2006.\6\ The Nasdaq Crossing Network provides an execution 
option to market participants trading in Nasdaq and other exchange-
listed securities that facilitates the execution of block trades 
quickly and anonymously, while minimizing market impact and associated 
price movements. The Nasdaq Crossing Network consists of a series of 
trading day (``Intraday'') and after hours (``Post-Close'') Reference 
Price Crosses.
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    \6\ See Securities Exchange Act Release No. 54248 (July 31, 
2006) (SR-NASDAQ-2006-019). Prior to the effective date of Nasdaq's 
operation as an exchange for Nasdaq-listed securities, the rule 
governing the Nasdaq Crossing Network had been approved as an NASD 
rule (NASD Rule 4716). Securities Exchange Act Release No. 54101 
(July 5, 2006), 71 FR 39382 (July 12, 2006) (SR-NASD-2005-140).
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    Since Nasdaq launched the Crossing Network, Nasdaq has not charged 
a fee to members for executing orders through the Intraday or Post-
Close Crosses. Under the rule change, although there will continue to 
be no fee associated with trading through the Crossing Network, member 
firms will be eligible for a credit of $0.0010 per share for orders 
executed through the Crossing Network during the month of September. 
The credit will not be subject to volume or use requirements. Trades 
that involve the same market participant on both sides of the 
transaction, however, will not be eligible for the credit.
    After the expiration of the promotional pricing on September 30, 
2008, order executions through the Crossing Network will continue to be 
offered to members at no charge.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with Section 
6(b)(4) of the Act,\8\ 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 Nasdaq operates or controls. The promotional pricing for the 
Crossing Network is an equitable allocation of fees because the credit 
will apply equally to all members who execute orders through the 
Crossing Network. Furthermore, the credit is reasonable because it is 
intended to encourage participation in the Crossing Network, which 
would provide additional data to Nasdaq to evaluate the need for any 
future changes to the product or the relevant fee schedule.
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    \7\ 15 U.S.C. 78f.
    \8\ 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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    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.

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-2008-070 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-2008-070. 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

[[Page 51672]]

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 the self-regulatory organization. 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-2008-070, and should 
be submitted on or before September 25, 2008.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-20516 Filed 9-3-08; 8:45 am]

BILLING CODE 8010-01-P