[Federal Register Volume 64, Number 128 (Tuesday, July 6, 1999)]
[Notices]
[Pages 36415-36416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16951]


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SECURITIES AND EXCHANGE COMMISSION

(Release No. 34-41571; File No. SR-NASD-99-22)


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change Relating to Limited 
Usage Service Fees

June 28, 1999.
    On April 28, 1999, 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 (``SEC'' or ``Commission''), 
pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
amend NASD Rule 7010 to eliminate its Limited Usage Service Fee.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on May 28, 1999.\3\ The Commission did not receive any 
comments on the proposed rule change. This order approves the proposed 
rule change.
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    \3\ Securities Exchange Act Release No. 41432 (May 20, 1999), 64 
FR 29075.
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    Nasdaq is proposing to amend NASD Rule 7010 to eliminate its 
Limited Usage

[[Page 36416]]

Service Fee.\4\ Currently, professional market participants may obtain, 
through an approved portable quotation device, Nasdaq Level I and Last 
Sale Information on up to 250 Nasdaq securities for a monthly fee of 
$6.00. The fee currently has approximately 95 subscribers and has never 
exceeded 200 users during its existence. In light of this low 
participant usage and the burdens associated with administering the 
Limited Usage Service, Nasdaq has determined to discontinue this 
service and its related fee. Nasdaq notes that the information provided 
through the Limited Usage Service will still be widely available to 
professionals through numerous other mediums and vendors.
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    \4\ This fee was established on a pilot basis on January 3, 
1984. See Securities Exchange Act Release No. 20522 (January 3, 
1984), 49 FR 1440 (January 11, 1984).
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act \5\ and the rules and regulations 
thereunder applicable to a national securities association. In 
particular, the Commission finds the proposal is consistent with the 
requirements of sections 15A(b)(5) \6\ and (6) \7\ because the proposed 
rule change is designed to provide for the equitable allocation of 
reasonable fees among those using the NASD's facilities or systems and 
is not designed to permit unfair discrimination between customers, 
issuers, brokers or dealers.
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    \5\ The Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. The Commission finds 
that the proposed rule change increases efficiency by refining the 
fee structure and lessening confusion about available services. The 
Commission also finds that the proposed rule change is not 
discriminatory and does not impinge on competition because the 
information provided through the Limited Usage Service is still 
widely available through other mediums. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3(b)(5).
    \7\ 15 U.S.C. 78o-3(b)(6).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NASD-99-22) is approved.

    \8\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority,\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-16951 Filed 7-2-99; 8:45 am]
BILLING CODE 8010-01-M