Document ID: SEC-2008-0145-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2008-01-29T05:00Z

[Federal Register: January 29, 2008 (Volume 73, Number 19)]
[Notices]               
[Page 5249-5251]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ja08-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57183; File No. SR-NASDAQ-2008-007]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Delay Implementation of Certain Fee Changes

January 22, 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 January 17, 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 substantially by Nasdaq. Nasdaq has designated 
this proposal as constituting a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule under Section 19(b)(3)(A)(i) of the Act 
\3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to

[[Page 5250]]

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)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to delay the implementation date of certain pricing 
changes made by SR-NASDAQ-2008-001 \5\ that were effective upon filing. 
There is no text to the proposed rule change. Nasdaq will implement 
this rule change immediately.
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    \5\ See Securities Exchange Act Release No. 57147 (January 14, 
2008), 73 FR 3788 (January 22, 2008) (SR-NASDAQ-2008-001).
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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
    In SR-NASDAQ-2008-001, Nasdaq made a number of changes to its 
pricing schedule for transaction execution and routing. In that filing, 
which was effective upon filing, all of the pricing changes were 
designated to take effect on January 2, 2008. Based on member requests 
to provide additional time to adjust to one aspect of the pricing 
change, Nasdaq is delaying implementation of the $0.0001 reduction in 
the liquidity provider rebate applicable to quotes/orders that are 
designated for posting to the Nasdaq book without being displayed to 
other market participants. Thus, for the month of January, the 
liquidity provider credit for Nasdaq-listed securities priced at $1 or 
more will be $0.0025 per share executed for members with an average 
daily volume through the Nasdaq Market Center in all securities during 
the month of more than 35 million shares of liquidity provided; $0.0022 
per share executed for members with an average daily volume of more 
than 20 million shares of liquidity provided; and $0.002 per share 
executed for other members. The liquidity provider credit for 
securities listed on the New York Stock Exchange (``NYSE'') priced at 
$1 or more per share will be $0.0027 per share executed for members 
with an average daily volume through the Nasdaq Market Center in all 
securities during the month of more than 35 million shares of liquidity 
provided; $0.0023 per share executed for members with an average daily 
volume of more than 20 million shares of liquidity provided; and $0.002 
per share executed for other members. For securities listed on 
exchanges other than NYSE and Nasdaq, the rebate will be $0.004 per 
share executed for all members trading certain designated ``Low-Volume 
Securities.'' For other securities listed on exchanges other than 
Nasdaq and NYSE, the rebate will be $0.0025 per share executed for 
members with an average daily volume of more than 35 million shares of 
liquidity provided; $0.0022 per executed for members with an average 
daily volume of more than 20 million shares of liquidity provided; and 
$0.002 per share executed for other members. Effective February 1, 
2008, the reduction of each of these amounts by $0.0001 per share 
executed for quotes/orders that do not display liquidity will be 
implemented. All other changes made by SR-NASDAQ-2008-001 have been 
implemented effective January 2, 2008. Because Nasdaq prepares bills 
for order execution and routing at the end of a month, the delayed 
implementation will be fully reflected in the bills for January 2008.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general, and with Section 
6(b)(4) 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 Nasdaq operates or controls. The changes will delay a decrease in 
liquidity provider rebates during the month of January 2008 for all 
members that provide liquidity through non-displayed quotes/orders.
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    \6\ 15 U.S.C. 78f.
    \7\ 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 impose 
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 proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(i) of the Act \8\ and Rule 19b-4(f)(1) \9\ 
thereunder, because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(i).
    \9\ 17 CFR 240.19b-4(f)(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-2008-007 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-2008-007. 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

[[Page 5251]]

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 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 publicly available. All submissions 
should refer to File Number SR-NASDAQ-2008-007 and should be submitted 
on or before February 19, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1464 Filed 1-28-08; 8:45 am]

BILLING CODE 8011-01-P