

[Federal Register: April 18, 2007 (Volume 72, Number 74)]
[Notices]               
[Page 19564-19565]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ap07-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55609; File No. SR-NASDAQ-2007-033]

 
Self-Regulatory Organizations; the NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Waive Fees for Distributors of Certain Market Data From the Nasdaq 
Market Center

April 10, 2007.
    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 30, 2007, 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 Nasdaq. The 
Exchange has filed the proposal 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 it 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).
    \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 is proposing to modify Nasdaq Rule 7023(c) to waive the 
distributor fees applicable to Nasdaq OpenView for recipients of the 
new Nasdaq Level 2 data feed or the new OpenView Basic data feed for a 
six-month pilot. The text of the proposed rule change is available at 
Nasdaq, the Commission's Public Reference Room, and http://www.nasdaq.com.


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
    On February 12, 2007, Nasdaq completed the implementation of the 
new Nasdaq Market Center Execution System, commonly known as ``Single 
Book.'' The Single Book is the product of the integration of Nasdaq's 
three separate execution platforms into a single platform trading all 
Nasdaq, NYSE, and Amex securities.
    A by-product of this integration and the new system is a re-
alignment of Nasdaq's data feeds. Under the previous systems, market 
data for Nasdaq securities was disseminated on one set of data feeds 
and market data for NYSE and Amex securities was disseminated on 
another. Because the Single Book processes Nasdaq, NYSE, and Amex 
securities on a single platform, the market data for all securities is 
disseminated via more unified data feeds. For example, previously 
Nasdaq disseminated each market participant's best bid and offer for 
Nasdaq securities on the Nasdaq Quotation Dissemination Service 
(``NQDS'') and for NYSE and Amex securities on the OpenView feed.

[[Page 19565]]

Starting February 12, 2007, market participants' best bids and offers 
for all securities are disseminated via a single data feed, the new 
Level 2 data feed. Also beginning February 12, 2007, Nasdaq began 
disseminating OpenView Basic, a new version of its OpenView feed which 
contains only the best bid and offer from each Nasdaq market 
participant quoting in NYSE and Amex securities.
    Nasdaq is proposing to waive for six months, beginning April 1, 
2007 and ending September 30, 2007, the distributor fee for OpenView 
which would otherwise apply to distributors of the new Level 2 and 
OpenView Basic data feeds. Waiving the OpenView distributor fees will 
encourage adoption of the new Level 2 and OpenView Basic data feeds and 
wider dissemination of that data. In the case of Level 2, the 
distributor fee waiver is also appropriate because currently there are 
many more recipients of NQDS data for Nasdaq stocks than for NYSE and 
Amex stocks and each will become liable for the OpenView distributor 
fee based upon their receipt and distribution of the Level 2 data feed. 
Nasdaq believes it is appropriate to provide these new recipients of 
OpenView data with a reasonable period of time to become familiar with 
the new OpenView data.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\5\ in general, and with Section 
6(b)(4) of the Act,\6\ in particular, in that waiving the OpenView 
distribution fee for distributors that receive NASDAQ market data for 
NYSE and Amex securities via Level 2 or OpenView Basic will encourage 
broader dissemination of that data and thereby increase transparency in 
those securities.
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    \5\ 15 U.S.C. 78f.
    \6\ 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.

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

    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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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.\9\ However, 
Rule 19b-4(f)(6)(iii) \10\ 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 
would permit Nasdaq to implement the waiver of the distributor fee for 
OpenView on April 1, 2007, for a six-month period. For this reason, the 
Commission designates the proposed rule change to be operative upon 
filing with the Commission.\11\
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    \9\ 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 that the Commission waive 
the 5-day pre-filing notice requirement. The Commission has 
determined to grant this request.
    \10\ Id.
    \11\ 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.

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-2007-033 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-NASDAQ-2007-033. 
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 the 
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-2007-033 and should be submitted on or before May 
9, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-7318 Filed 4-17-07; 8:45 am]

BILLING CODE 8010-01-P
