[Federal Register Volume 72, Number 242 (Tuesday, December 18, 2007)]
[Notices]
[Pages 71727-71729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-24466]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56940; File No. SR-NASDAQ-2007-095]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Members Using the Nasdaq Market Center
December 11, 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 November 30, 2007, 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. Pursuant to Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)\4\ thereunder,
Nasdaq has designated this proposal as establishing or changing a
member due, fee, or other charge, which renders the proposed rule
change effective immediately upon filing.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 7 CFR 240.19b-4.
\3\ 5 U.S.C. 78s(b)(3)(A)(ii).
\4\ 7 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.
[[Page 71728]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify pricing for Nasdaq members using the
Nasdaq Market Center. Nasdaq will implement this proposed rule change
on December 3, 2007. The text of the proposed rule change is available
at http://nasdaq.complinet.com, Nasdaq, and the Commission's Public
Reference Room.
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 proposing changes to its fees for routing odd lot and
mixed lot orders to the New York Stock Exchange (``NYSE'') and NYSE
Arca. In the case of odd lot orders routed to NYSE Arca, NYSE Arca
charges Nasdaq a fee of $0.03 per share executed for securities listed
on an exchange other than Nasdaq and a fee of $0.004 per share executed
for Nasdaq-listed securities. \5\ Nasdaq is proposing to pass these
fees through directly to its members whose orders are routed to NYSE
Arca, \6\ but only if the orders are entered into Nasdaq as odd lot
orders. Thus, if Nasdaq partially executes an order and routes a
remaining odd lot, Nasdaq's normal routing fees would apply to the odd
lot.
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\5\ See NYSE Arca Equities Fee Schedule (October 1, 2007)
(available at http://www.nyse.com/pdfs/NYSEArca_Equities_Fees.pdf).
\6\ A fee of 0.3% of the total transaction cost would apply to
orders in securities priced at less than $1 per share, which is
higher than NYSE Arca's fee for executing such orders but consistent
with Nasdaq's fee for routing other orders priced under $1.
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In the case of odd lot orders and the odd lot portion of partial
odd lot orders routed to NYSE, NYSE charges $0.0004 per share executed
for securities other than exchange-traded funds (``ETFs''), and charges
its regular execution fee for ETFs.\7\ However, various NYSE rules and
policies discourage the submission of odd lots to the NYSE, and Nasdaq
therefore believes that it is appropriate to use its fee schedule to
discourage the submission of routable odd lot and mixed lot orders into
Nasdaq.\8\ Specifically, in the case of an odd lot that does not check
the Nasdaq book prior to routing, Nasdaq will charge $0.03 per share
executed, while in the case of the odd lot portion of a partial round
lot that does not check the book, Nasdaq will charge $0.01 per share
executed. Nasdaq's current routing fees will remain in effect for
orders that check the book, since in these cases, the routing of the
odd lot to NYSE may be due to the order being partially executed by
Nasdaq. A fee of 0.3% of the total transaction cost will apply to
orders in securities priced at less than $1 per share.
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\7\ See NYSE 2007 Price List (available at http://www.nyse.com/pdfs/2007pricelist.pdf).
\8\ Nasdaq also notes that NYSE Arca charges $0.03 per share for
routing odd lot orders in non-Nasdaq securities, and Nasdaq's
routing fees will be equal to or lower than this level.
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2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\9\ in general, and with Section
6(b)(4) of the Act,\10\ 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.
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\9\ 15 U.S.C. 78f.
\10\ 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 proposed rule change has become effective upon filing
with the Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \11\
and Rule 19b-4(f)(2) thereunder,\12\ in that the proposed rule change
establishes or changes a member due, fee, or other charge imposed by
the self-regulatory organization. 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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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 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 [email protected]. Please include
File Number SR-NASDAQ-2007-095 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-2007-095. 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 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 available publicly. All submissions should refer to
File Number SR-
[[Page 71729]]
NASDAQ-2007-095 and should be submitted on or before January 8, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-24466 Filed 12-17-07; 8:45 am]
BILLING CODE 8011-01-P