[Federal Register Volume 63, Number 202 (Tuesday, October 20, 1998)]
[Notices]
[Pages 56055-56056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28109]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40546; File No. SR-NASD-98-73]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the National Association of Securities Dealers, Inc. Relating 
to Fees for Subscribers Who Receive Nasdaq Level 1 and Last Sale Data 
Through Automated Voice Response Services

October 13, 1998.
    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 October 1, 1998, the National Association of Securities Dealers, 
Inc. (``NASD''), through its wholly-owned subsidiary, the Nasdaq Stock 
Market, Inc. (``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 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).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Nasdaq is proposing to amend Rule 7010 of the NASD to make 
permanent its current monthly pilot fee for subscribers who receive 
Nasdaq Level 1 and Last Sale data through automated voice response 
services. Below is the text of the proposed rule change. Proposed new 
language is in italics.
* * * * *
    (p) Automated Voice Response Service Fee
    The monthly charge to be paid by the subscriber for access to 
Nasdaq Level 1 Service and Last Sale Information Service through 
automated voice response services shall be $21.25 for each voice port.
* * * * *

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

[[Page 56056]]

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

    Nasdaq is proposing to make permanent its $21.25 monthly per port 
fee for subscribers who receive Nasdaq Level 1 service through 
automated voice response services.\3\ These services provide callers 
with automated voice access to real-time Nasdaq pricing information. 
The monthly $21.25 fee has been in effect as a pilot fee for over 11 
years and was originally based on a formulation of a $5.00 premium 
above the combined $16.25 Level 1/Last Sale rate in effect at that 
time. This fee has not increased despite a subsequent increase of Level 
1/Last Sale rates to the current $20.00 per month level. Given the 
continued usage of voice-based quote access services,\4\ Nasdaq 
believes that the charge for such services should not be made a 
permanent part of its fee structure.
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    \3\ A vendor's voice port count is defined as the maximum number 
of callers capable of accessing Nasdaq data at any given time. For 
example, if a vendor's voice port count is 100 (i.e., capable of 
handling a maximum of 100 callers at any given time) then the fee 
accessed would be $2,125 ($21.25  x  100). Conference call on 
October 6, 1998, between Thomas P. Moran, Senior Attorney, Office of 
General Counsel, Nasdaq, and Mignon McLemore, Attorney and Robert B. 
Long, Division of Market Regulation, Commission.
    \4\ There are currently 7,629 voice ports in service.
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    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Sections 15A(b)(5) \5\ and 15A(b)(6) \6\ of the Act 
in that the proposal is designed to provide for the equitable 
allocation of reasonable fees among members and other persons using any 
facility or system which the Association operates or controls and is 
not designed to permit unfair discrimination between customers, issues, 
brokers or dealers.
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    \5\ 15 U.S.C. 78o-3(b)(5).
    \5\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will impose 
any inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such long period (i) as the Commission may designate 
up to 90 days of such date if it finds such long 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 the 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, including whether the proposal is 
consistent with the Act. 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 at 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-98-73 and should be 
submitted by November 10, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-28109 Filed 10-19-98; 8:45 am]
BILLING CODE 8010-01-M