[Federal Register Volume 63, Number 15 (Friday, January 23, 1998)]
[Notices]
[Pages 3595-3596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1645]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39555; File No. SR-NASD-97-98]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc. Relating to SelectNet Fees

January 15, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 31, 1997, the 
National Association of Securities Dealers, Inc. (``NASD'' or 
``Association'') through its wholly owned subsidiary, the Nasdaq Stock 
Market, Inc. (``Nasdaq'') filed with the Securities and Exchange 
Commission (``Commission'' or ``SEC'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Pursuant to Rule 19b-4 under the Act Nasdaq is herewith filing a 
proposed extension of the temporary 50% fee reduction currently charged 
under NASD Rule 7010(1) for the execution of a transaction in 
SelectNet.

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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Nasdaq is proposing to extend the temporary 50% fee abatement 
currently charged under NASD Rule 7010(1) for the execution of a 
transaction in SelectNet. This proposed extension continues the current 
SelectNet fee reduction from $2.50 per side to $1.25 per side and is 
effective January 1, 1998, through March 31, 1998. The proposed 
extension constitutes only a temporary abatement in the fee Nasdaq 
collects and, if no further action is taken, SelectNet fees will revert 
to the $2.50 per side level on April, 1998.
    The reasons justifying a SelectNet fee reduction are contained in 
Nasdaq's original rule filing in October of 1997 seeking a 50% 
abatement for the period of October 1, 1997, through December 31, 
1997.\2\ SelectNet usage has continued to grow with more than 107,000 
transactions in October of 1997 and over 79,000 transactions in 
November of 1997. Nasdaq believes that while the level of SelectNet 
activity supports a continuation of lower SelectNet fees, the 
volatility of current SelectNet usage levels militates in favor of the 
maintenance of the fee reduction on a temporary basis.
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    \2\ See Securities Exchange Act Release No. 39248 (October 16, 
1997), 62 FR 55296 (October 23, 1997).
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    Nasdaq believes that the proposed extension of the fee reduction is 
consistent with Section 15A(b)(5) of the Act, which requires that the 
rules of the NASD provide for the equitable allocation of reasonable 
dues, fees and other changes among members and issuers and other 
persons using any facility or system which the NASD operates or 
controls.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The NASD believes that the proposed rule change will not 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

    Comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    This filing applies to the assessment of SelectNet fees to NASD 
members, and thus the proposed rule change is effective immediately 
upon filing pursuant to Section 19(b)(3)(A)(ii) \3\ of the Act and 
subparagraph (e)(2) of Rule 19b-4 under the Act \4\ because the 
proposal is establishing or changing a due, fee or other charge.
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    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(e)(2).
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    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.

[[Page 3596]]

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, N.W., Washington, D.C. 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 File No. SR-NASD-97-98 and should 
be submitted by February 13, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-1645 Filed 1-22-98; 8:45 am]
BILLING CODE 8010-01-M