[Federal Register Volume 60, Number 207 (Thursday, October 26, 1995)]
[Notices]
[Pages 54896-54897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26546]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36396; File No. SR-NASD-95-47]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by National Association of 
Securities Dealers, Inc. Relating to 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 NASD has designated this proposal as establishing or 
changing a due, fee, or other charge under Section 19(b)(3)(A) of the 
Act, which renders the rule effective upon the Commission's receipt of 
this filing. 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 
Workstation TM service shall be subject to the following 
deposit charges per unit:

1. New subscriber
    a. estimated telecommunciations provider [installation] charges 
[including cable, freight and telephone company charge;] for network 
infrastructure, connection and testing;
    b. two (2) months circuit [service and equipment] charges; and
    c. estimated telecommunciations 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) months 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 NASD 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 

[[Page 54897]]
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 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 proposed rule change has become effective immediately 
upon filing with respect to NASD members as indicated in Section III 
below. A companion filing, which applies the proposed rule change to 
non-member subscribers, is being filed separately pursuant to Section 
19(b)(2) of the Act.
    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 
rules 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 which the association 
operates or controls.

(B) Self-Regulatory Organization's Statement of 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

    With respect to NASD members, the foregoing rule change has become 
effective immediately pursuant to Section 19(b)(3)(A) of the Act and 
subparagraph (e) of Rule 19b-4 thereunder because it establishes or 
changes a due, fee or other charge imposed by the NASD. At any time 
within 60 days of the filing of such rule change, the Commission may 
summarily abrogate the 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. 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. 95-26546 Filed 10-25-95; 8:45 am]
BILLING CODE 8010-01-M