[Federal Register Volume 60, Number 207 (Thursday, October 26, 1995)]
[Notices]
[Pages 54897-54898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26545]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36397; File No. SR-NASD-95-48]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by National Association of Securities Dealers, Inc. Relating to 
Non-Member Subscriber Deposits for Nasdaq Level 2/3 Service and 
Equipment

October 20, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on October 
11, 1995, the National Association of Securities Dealers, Inc. 
(``NASD'' or ``Association'') filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the NASD. 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 Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) under the Act, the 
NASD is proposing to revise the subscriber deposit requirements 
contained in Part VIII, Paragraph G.1. and 2. of Schedule D to the NASD 
By-Laws. The text of the proposed rule change is as follows. (Additions 
are italicized; deletions are bracketed.)

Schedule D

Part VIII

Schedule of NASD Charges for Services and Equipment

G. Subscriber Deposits

    New and existing subscribers to Level 2/3 or Nasdaq 
WorkstationTM servicer shall be subject to the following 
deposit charges per unit:

1. New subscriber
    a. estimated telecommunications provider [installation] charges 
[including cable, freight and telephone company charges;] for 
network infrastructure, connection and testing;
    b. two (2) months circuit [service and equipment] charges; and
    c. estimated telecommunications provider disconnect charges 
[including Harris disconnect and freight charges].
2. Existing subscribers subject to subscriber deposits include those 
that have been placed on the termination list two or more times 
within a two year period; those that have paid for services with one 
or more NSF checks; and those that have had service disconnected for 
non-payment but have not had equipment removed:
    a. two (2) circuit [service and equipment] charges; and
    b. estimated telecommunciations provider disconnect charges 
[including Harris disconnect and freight charges].

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 NADS 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. The NASD 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

    The proposed rule change reflects increased charges for the 
provision of 

[[Page 54898]]
telecommunications services underlying Nasdaq Workstation II service, 
and clarifies the various component functions encompassed within the 
circuit installation fee so that the true nature of the charge is made 
clear to new subscribers. These requirements would pertain only to new 
subscribers or existing subscribers that have defaulted on the payment 
of their charges.
    Note that the instant filing applies only to non-member 
subscribers. A companion filing, which applies the proposed rule change 
to member subscribers, is being filed separately for immediate 
effectiveness.
    The NASD believes that the proposed rule change is consistent with 
the provisions of Section 15A(b)(5) of the Act, which requires that the 
rule of the Association provide for the equitable allocation of 
reasonable dues, fees and other charges among members and issuers and 
other persons using any facility or system while the association 
operates or controls.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The NASD 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
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 such filing will also be 
available for inspection and copying at the principal office of the 
NASD. All submissions should refer to the file number in the caption 
above and should be submitted by November 16, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-26545 Filed 10-25-95; 8:45 am]
BILLING CODE 8010-01-M