[Federal Register Volume 66, Number 201 (Wednesday, October 17, 2001)]
[Notices]
[Pages 52814-52818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26028]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44918; File No. SR-NASD-2001-71]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Modify SuperSOES Use Fees and the Liquidity Provider 
Rebate, Institute a Quotation Update Charge, and Introduce a Mechanism 
for Sharing Market Data Revenue With Certain NASD Members

October 10, 2001.
    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 
9, 2001, the National Association of Securities Dealers, Inc. (``NASD'' 
or ``Association''), through its subsidiary, The Nasdaq Stock Market, 
Inc. (``Nasdaq''), filed with the Securities

[[Page 52815]]

and Exchange Commission (``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by Nasdaq. 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

    This is a rule change, on a pilot basis, to: (1) Modify the fees 
for use of the Nasdaq National Market Execution System (``NNMS'' or 
``SuperSOES''); (2) modify Nasdaq's liquidity provider rebate; (3) 
institute a quotation update charge; and (4) introduce a mechanism for 
sharing market data revenue with NASD members that report substantially 
all of their trades through the Automated Confirmation Transaction 
Service (``ACT''). Pursuant to Section 19(b)(3)(A)(ii) of the Act \1\ 
and Rule 19b-4(f)(2) thereunder,\2\ Nasdaq has designated this proposal 
as one establishing or changing a due, fee, or other charge imposed by 
a self-regulatory organization, and therefore the proposed rule change 
is effective upon filing as applied to NASD members. The rule change 
will become operative on a pilot basis, commencing on December 1, 2001 
and ending on November 30, 2002.\3\ During the pilot period, Nasdaq 
will assess the effect of the rule change on market participants and 
Nasdaq and may file additional changes to the level or structure of its 
fees. The text of the proposed rule change is set forth below. Proposed 
new language is italicized; proposed deletions are in brackets.
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    \1\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \2\ 17 CFR 240.19b-4(f)(2).
    \3\ Nasdaq also filed a companion rule filing (SR-NASD-2001-72) 
to apply portions of the rule change to national securities 
exchanges trading Nasdaq-listed securities pursuant to grants of 
unlisted trading privileges (``UTP Exchanges''). SR-NASD-2001-72 
will become effective upon approval by the Commission and will be 
implemented on the later of (i) December 1, 2001, or (ii) the first 
day of the month immediately following Commission approval.
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* * * * *

7010. System Services

    (a) (1) Nasdaq Level 1 Service
    The charge to be paid by the subscriber for each terminal receiving 
Nasdaq level 1 Service is $20 per month. This Service includes the 
following data:
    [(1)](A) inside bid/ask quotations calculated for securities listed 
in The Nasdaq Stock Market and securities quoted in the OTC Bulletin 
Board (OTCBB) service;
    [(2)](B) the individual quotations or indications of interest of 
broker/dealers utilizing the OTCBB service; and
    [(3)](C) last sale information on securities classified as 
designated securities in the Rule 4630, 4640, and 4650 Series and 
securities classified as over-the-counter equity securities in the Rule 
6600 Series.
    (2) Market Data Revenue Sharing
    For a pilot period commencing on December 1, 2001 and lasting until 
November 30, 2002, Full Contribution Members (as defined in Rule 
7010(i)(2)) shall receive a market data revenue sharing credit. The 
total credit shall consist of two components, a ``Base Credit'' and a 
``Supplemental Credit.'' \4\
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    \4\ Nasdaq corrected a typographical error that appeared in the 
proposed rule language. Telephone conversation between John M. 
Yetter, Assistant General Counsel, Nasdaq and Susie Cho, Special 
Counsel, Division of Market Regulation (``Division''), Commission, 
October 10, 2001.
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    (A) A Full Contribution Member's Base Credit shall be calculated in 
accordance with the following formula:
    Base Credit = (0.50)  x  (Eligible Revenue)  x  (Member's Volume 
Percentage)
    (B) A Full Contribution Member's Supplemental Credit shall be 
calculated in accordance with the following formula:
    Supplemental Credit = (Eligible Revenue)  x  (Member's Volume 
Percentage)  x  (Member's Overall Volume Percentage, not to exceed 10%)
    (C) Definitions. The following definitions shall apply to this 
Rule:
    (i) ``Eligible Revenue'' shall mean:
    a. The portion of the net distributable revenues that Nasdaq, 
through the NASD, is eligible to receive under the Nasdaq UTP Plan, 
that is attributed to the Nasdaq Level 1 Service for Eligible 
Securities, minus
    b. The portion of the fee charged to Nasdaq by NASD Regulation, 
Inc. for regulatory services allocated to the Nasdaq Level 1 Service 
for Eligible Securities.
    (ii) ``Eligible Securities'' shall mean all Nasdaq National Market 
securities and any other security that meets the definition of 
``Eligible Security'' in the Nasdaq UTP Plan.
    (iii) ``Member's Volume Percentage'' shall mean the average of:
    a. The percentage derived from dividing the total number of trades 
in Eligible Securities conducted on non-Nasdaq transaction systems that 
the member reports in accordance with NASD trade reporting rules to the 
Automated Confirmation Transaction Service (``ACT'') by the total 
number of trades in Eligible Securities reported to ACT by NASD 
members, and
    b. The percentage derived from dividing the total number of shares 
represented by trades in Eligible Securities conducted on non-Nasdaq 
transaction systems that the member reports in accordance with NASD 
trade reporting rules to ACT by the total number of shares represented 
by all trades in Eligible Securities reported to ACT by NASD members.
    (iv) ``Members Overall Volume Percentage'' shall mean the average 
of:
    a. The percentage derived from dividing the total number of trades 
in Eligible Securities that the member reports in accordance with NASD 
trade reporting rules to ACT by the total number of trades in Eligible 
Securities reported to ACT by NASD members, and
    b. The percentage derived from dividing the total number of shares 
represented by trades in Eligible Securities that the member reports in 
accordance with NASD trade reporting rules to ACT by the total number 
of shares represented by all trades in Eligible Securities reported to 
ACT by NASD members.
    (v) ``Nasdaq UTP Plan'' shall have the meaning set forth in NASD 
Rule 4720.
    (b)-(h) No change.
    (i) Transaction Executive Services
    (1) No change.
    (2) Nasdaq National Market Execution System (SuperSOES)\5\
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    \5\ Nasdaq corrected a typographical error that appeared in the 
proposed rule language. Telephone conversation between John M. 
Yetter, Assistant General Counsel, Nasdaq and Susie Cho, Special 
Counsel, Division, Commission, October 10, 2001.
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    (A) The following charges shall apply to the use of the Nasdaq 
National
    Market Execution System:

Order Entry Charge--$0.10 per order entry (entering party only)
Per Share Charge--$0.001 per share executed for all fully or partially 
executed orders (entering party only)
Cancellation Fee--$0.25 per order cancelled (cancelling party only)

    (B)(i) For a pilot period commencing on [November] December 1, 2001 
and lasting until [October 31] November 30, 2002, the per share charge 
will be [$0.002 per share executed for all fully or partially executed 
orders (entering party only).] determined as follows:

Full Contribution Members--$0.002 per share executed for all fully or 
partially executed orders (entering party only)
Partial Contribution Members--$0.003 per share executed for all fully 
or partially executed orders (entering party only)

[[Page 52816]]

Full Contribution UTP Exchanges: \6\--$0.003 per share executed for all 
fully or partially executed orders (entering party only)
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    \6\ For purposes of completeness, NASD has included this 
provision on per share charges for ``Full Contribution UPT 
Exchanges,'' but the provision is not effective until approved by 
the Commission. See SR-NASD-2001-72.
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    (ii) Definition following definitions shall apply to this Rule:
    (a) ``Full Contribution Member'' shall mean an NASD member that 
reports substantially all of its trade during regular market hours 
through the Automated Confirmation Transaction Service; provided, 
however, that for the first three months of the pilot period, all NASD 
members shall be deemed to be Full Contribution Members. Nasdaq may 
request that a member submit data demonstrating that it satisfies the 
definition of a Full Contribution Member, and may deem a member that 
fails to submit such data upon request to be a Partial Contribution 
Member.
    b. ``Partial Contribution Member'' shall mean any NASD member that 
is not a Full Contribution Member.
    c. ``Full Contribution UTP Exchange'' shall mean any national 
securities exchange trading Nasdaq securities pursuant the Nasdaq UTP 
Plan (as defined in NASD Rule 4720) that chooses to participate in the 
automatic execution functionality of the Nasdaq National Market 
Execution System.\7\
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    \7\ For purposes of completeness, NASD has included this 
provision defining ``Full Contribution UTP Exchange,'' but the 
provision is not effective until approved by the Commission. See SR-
NASD-2001-72.
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    (3) No change.
    (4) Liquidity provider rebate
    For a pilot period commencing on [November] December 1, 2001 and 
lasting until [October 31] November 30, 2002:
    (A) [NASD members] Full Contribution Members that do not charge an 
access fee to market participants accessing their quotations through 
the Nasdaq National Market Executive System will receive a rebate of 
$0.001 per share when their quotation is executed against by a Nasdaq 
National Market Execution System order.
    (B) Partial Contribution Members that do not charge an access fee 
to market participants accessing their quotations through the Nasdaq 
National Market Execution System will receive a rebate of $0.0005 per 
share when their quotation is executed against by a Nasdaq National 
Market Execution System order.
    [(B) NASD members] (C) Full Contribution Members and Partial 
Contribution Members will receive a rebate of $0.001 per share when 
they send a Nasdaq National Market Execution System order that executes 
against the quotation of a market participant that charges an access 
fee to market participants accessing its quotations through the Nasdaq 
National Execution System.
    (5) Quotation Updates
    For a pilot period commencing on December 1, 2001 and lasting until 
November 30, 2002, the following charges shall apply to NASD members 
for quotation updates in the Nasdaq quotation montage:

Full Contribution Members--$0.01 per quotation update
Partial Contribution Members--$0.03 per quotation update

    (j)-(q) No change.

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 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 summaries, set forth below in Sections (A), 
(B), and (C), 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

    On January 14, 2000, the Commission issued an order approving a 
rule change that: (1) Established the NNMS, a new platform for the 
trading of Nasdaq National Market (``NNM'') securities; (2) modified 
the rules governing the use of SelectNet for trading NNM issues; and 
(3) left unchanged trading of Nasdaq SmallCap securities through the 
Small Order Execution System (``SOES'') and SelectNet.\8\ Nasdaq began 
implementing these system changes on July 9, 2001 and completed 
implementation on July 30, 2001. Through these changes, the NNMS has 
become the primary trading platform for NNM securities, and SelectNet 
is intended to be used primarily for the transmittal and execution of 
``non-liability'' orders for market makers in NNM securities, as well 
as the transmittal and execution of ``liability'' orders to market 
participants that do not participate in the automatic execution 
functionality of the NNMS. On September 28, 2002, Nasdaq filed 
modifications to the pricing structure for SlectNet and the NNMS.\9\ 
These changes were designed as an interim modification to begin the 
process of aligning the charges to market participants for using the 
NNMS and SelectNet more closely with the costs of providing these 
services and the benefits that they provide to market participants. On 
October 3, 2001, Nasdaq filed a rule change, on a pilot basis, to 
increase the per share charge for use of the NNMS, and introduce a 
liquidity provider rebate for NASD members.\10\
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    \8\ See Securities Exchange Act Release No. 42344 (January 14, 
2000), 65 FR 3987 (January 25, 2000) (SR-NASD-99-11).
    \9\ See Securities Exchange Act Release No. 44899 (October 2, 
2001) (SR-NASD-2001-63) and Securities Exchange Act Release No. 
44898 (October 2, 2001) (SR-NASD-2001-64). SR-NASD-2001-63 applied 
the new fees to NASD members, effective upon filing, and was 
implemented on October 1, 2001. SR-NASD-2001-64 will apply the new 
fees to UTP Exchanges and will be implemented on the first day of 
the month immediately following Commission approval.
    \10\ See Securities Exchange Act Release No. 44910 (October 5, 
2001) (SR-NASD-2001-67) and Securities Exchange Act Release No. 
44914 (October 9, 2001) (SR-NASD-2001-68). SR-NASD-2001-67 applied 
these pilot changes to NASD members, effective upon filing, for a 
pilot period from November 1, 2001 through October 31, 2002. SR-
NASD-2001-68 will apply the increase in the per share charge to UTP 
Exchanges, and will be implemented on the first day of the month 
immediately following Commission approval.
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    With this filing, Nasdaq is introducing a mechanism for sharing 
market data revenue with NASD members that report substantially all 
trades through ACT. Nasdaq is also making additional modifications to 
the fees for use of the NNMS and the liquidity provider rebate to 
calibrate the level of fees and rebates to the contributions that each 
type of market participant makes to the support of the Nasdaq market. 
Finally, Nasdaq is introducing a quotation update charge.
    Nasdaq represents that the proposal is designed to enhance market 
efficiency and fairness by offering incentives to market participants 
that provide liquidity through the NNMS and support Nasdaq operations 
through trade reporting. The proposal imposes new charges on market 
participants that use the Nasdaq quotation mechanism to quote, but do 
not provide meaningful liquidity by exposing and executing orders in 
Nasdaq. The proposal seeks to reward those who provide meaningful 
quotes and expose orders for execution in Nasdaq, while building in 
economic incentives to discourage posting of inefficient quotations 
that impose burdens on system capacity. In particular, Nasdaq is 
concerned about the extent to which the quotes of market participants 
that are displayed in Nasdaq are accessed and/or reported

[[Page 52817]]

through non-Nasdaq systems. Market participants may advertise their 
liquidity on Nasdaq, but contribute very little to supporting the 
quotation, execution, and regulatory infrastructure that underpins the 
Nasdaq market.
    The proposal delineates three types of market participants. A 
``Full Contribution Member'' is defined as an NASD member that reports 
substantially all of its trades during regular market hours through ACT 
(either directly or as a result of an execution through a Nasdaq 
transaction execution system). All other NASD members would be 
considered ``Partial Contribution Members'' under the proposal. For the 
first three months of the pilot period, all NASD members are deemed to 
be Full Contribution Members. Thereafter, Nasdaq may request that a 
member submit data demonstrating that it satisfies the definition of a 
Full Contribution Member, and may deem a member that fails to submit 
such data upon request to be a Partial Contribution Member. A ``Full 
Contribution UTP Exchange'' is defined as any UTP Exchange that chooses 
to participate in the automatic execution functionality of the NNMS.
Charges for Order Execution and Quotation Updates
    Under the proposal, the per share charge for orders executed in the 
NNMS by Partial Contribution Members and Full Contribution UTP 
Exchanges will increase to $0.003 per share and will remain at $0.002 
per share for Full Contribution Members. Nasdaq is also instituting a 
quotation update fee that is applicable to NASD members (but not UTP 
Exchanges), in recognition of the fact that the ability to post quotes 
in the Nasdaq quotation montage provides market participants with the 
valuable opportunity to advertise the liquidity that they offer. Nasdaq 
believes that the absence of any charges for quotation updates has 
encouraged market participants to quote inefficiently, imposing 
unnecessary burdens on Nasdaq system capacity. Moreover, to the extent 
that quotations are accessed through non-Nasdaq systems, the firms that 
post the quotations are currently free riding on the quotation 
infrastructure provided by Nasdaq. Accordingly, Nasdaq will charge Full 
Contribution Members $0.01 each time their quotation is updated and 
Partial Contribution Members $0.03 each time their quotation is 
updated.\11\
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    \11\ A quotation update charge will not be imposed on UTP 
Exchanges at this time, because the Nasdaq Unlisted Trading 
Privileges Plan (the ``Nasdaq UTP Plan'') does not currently 
authorize such a charge.
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Liquidity Provider Rebate
    Effective on December 1, 2001, Nasdaq will modify the liquidity 
provider rebate instituted by SR-NASD-2001-67,\12\ by setting the 
rebate for Partial Contribution members that do not charge an access 
fee to market participants accessing their quotations through the NNMS 
at $0.0005 per share when their quotation is executed against via the 
NNMS. The rebate for Full Contribution Members that do not charge an 
access fee to market participants accessing their quotations through 
the NNMS will remain $0.001 per share when their quotation is executed 
against via the NNMS, and a rebate of $0.001 per share will remain for 
all members when they send an NNMS order that executes against the 
quotation of a market participant that charges an access fee to market 
participants accessing its quotation through the NNMS.
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    \12\ See supra note 10.
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Market Data Revenue Sharing
    Nasdaq proposes to share a portion of market data revenue with Full 
Contribution Members, the members that do the most to generate such 
revenues. The proposal is similar to the transaction credit already in 
effect to share Consolidated Tape Association revenue with NASD members 
that trade exchange-listed stocks through Nasdaq's Intermarket Trading 
System \13\ and similar revenue sharing programs established by UTP 
Exchanges.\14\ A member's total credit will consist of two parts, a 
Base Credit and a Supplemental Credit.
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    \13\ See NASD Rule 7010(c)(2).
    \14\ See, e.g., Securities Exchange Act Release No. 41238 (March 
31, 1999), 64 FR 17204 (April 8, 1999) (SR-CSE-99-03); Securities 
Exchange Act Release No. 40591 (October 22, 1998), 63 FR 58078 
(October 29, 1998) (SR-BSE-98-9); Securities Exchange Act Release 
No. 38237 (February 4, 1997), 62 FR 6592 (February 12, 1997) (SR-
CHX-97-01).
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    A member's Base Credit will be 50% of the product of Eligible 
Revenue and the Member's Volume Percentage. Eligible Revenue is defined 
as (i) the portion of the net distributable revenues that Nasdaq, 
through the NASD, is eligible to receive under the Nasdaq UTP Plan, 
that is attributed to the Nasdaq Level 1 Service for NNM securities or 
other securities covered by the Nasdaq UTP Plan (``Eligible 
Securities''), minus (ii) the portion of the fee charged to Nasdaq by 
NASD Regulation, Inc. (``NASDR'') for regulatory services allocated to 
the Nasdaq Level 1 Service for Eligible Securities. The Member's Volume 
Percentage is defined as the average of (i) the percentage derived from 
dividing the total number of trades in Eligible Securities conducted on 
non-Nasdaq transaction systems that the member reports in accordance 
with NASD trade reporting rules to ACT by the total number of trades in 
Eligible Securities reported to ACT by NASD members, and (ii) the 
percentage derived from dividing the total number of shares represented 
by trades in Eligible Securities conducted on non-Nasdaq transaction 
systems that the member reports in accordance with NASD trade reporting 
rules to ACT by the total number of shares represented by all trades in 
Eligible Securities reported to ACT by NASD members. In other words, 
the Base Credit is 50% of the net Level 1 revenue attributable to the 
member's reports of non-Nasdaq transaction system trades in Eligible 
Securities, with the pool of sharable revenue being comprised of Level 
1 revenues distributable to Nasdaq under the UTP Plan minus an 
allocated portion of the NASDR regulation fee, and the member's non-
Nasdaq transaction system trade report activity being measured by total 
number of trades and share volume.
    In addition, a member may receive a Supplemental Credit, equal to a 
percentage of the product of Eligible Revenue and the Member's Volume 
Percentage. The percentage will be the lesser of 10% or the Member's 
Overall Volume Percentage, which is defined as the average of (i) the 
percentage derived from dividing the total number of trades in Eligible 
Securities that the member reports in accordance with NASD trade 
reporting rules to ACT by the total number of trades in Eligible 
Securities reported to ACT by NASD members, and (ii) a percentage 
calculated by dividing the total number of shares represented by trades 
in Eligible Securities that the member reports in accordance with NASD 
trade reporting rules to ACT by the total number of shares represented 
by all trades in Eligible Securities reported to ACT by NASD members. 
In other words, the Supplemental Credit of up to 10% is based upon all 
of the member's trade reports, as measured by the total number of 
trades and share volume.
    Nasdaq believes that the proposed rule change is consistent with 
the Act, including Section 15A(b)(5) \15\ of the Act, which requires 
that the rules of the NASD provide for the equitable allocation of 
reasonable fees, dues, and other charges among members and issuers and 
other persons using any facility or system which the NASD operates or 
controls, and Section

[[Page 52818]]

15A(b)(6) \16\ of the Act, which requires rules that are not designed 
to permit unfair discrimination between customers, issuers, brokers or 
dealers.
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    \15\ 15 U.S.C. 78o-3(b)(5).
    \16\ 15 U.S.C. 78o-3(b)(6).
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    As the Commission has noted in the context of another self-
regulatory organization's fees, the Act ``prohibits `unfair 
discrimination,' simpliciter * * *'' \17\ Nasdaq believes that the 
proposed fee structure distinguishes among market participants in order 
to reward those who do the most to finance market innovations such as 
SuperSOES and who contribute the most to the liquidity and efficient 
operations of Nasdaq's market, while imposing higher fees on market 
participants that receive the benefits of posting quotations on Nasdaq 
systems but pay relatively little to support the operation of those 
systems. Thus, the economic incentives embodied by the new fee 
structure are designed to promote behavior that benefits both the 
market structure that Nasdaq offers to investors and Nasdaq as a 
business. As another self-regulatory organization noted when it 
established a credit available only to certain of its market 
participants, ``measures * * * designed to promote and encourage 
certain behaviors and/or discourage others * * * [are] an appropriate, 
nondiscriminatory business strategy.'' \18\
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    \17\ Securities Exchange Act Release No. 37250 (May 29, 1996), 
61 FR 28629 (June 5, 1996) (SR-CBOE-96-23) (quoting Timpinaro v. 
SEC, 2 F.3d 453, 456 (D.C. Cir. 1993)).
    \18\ Securities Exchange Act Release No. 44292 (May 11, 2001), 
66 FR 27715 (May 18, 2001) (SR-Phlx-2001-49).
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    Moreover, Nasdaq believes that the level of fees charged to market 
participants under the proposal is reasonable. Nasdaq anticipates that 
overall fees for the NNMS, SelectNet, and SOES, net of he liquidity 
provider rebate and the market data revenue sharing credit, will be 
comparable to overall fees for the NNMS, SelectNet, and SOES under 
Nasdaq's recently implemented pricing changes. Such fees are, in turn, 
estimated to be slightly lower than overall fees for SelectNet and SOES 
prior to the introduction of the NNMS.

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

    Nasdaq 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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act and subparagraph (f) of Rule 19b-4, 
thereunder because it establishes or changes a due, fee or other charge 
imposed by the self-regulatory organization. At any time within 60 days 
of the filing of the proposed 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, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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 the filing will also be 
available for inspection and copying at the principal office of the 
NASD. All submissions should refer to file number SR-NASD-2001-71 and 
should be submitted by November 7, 2001.\19\
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-26028 Filed 10-16-01; 8:45 am]
BILLING CODE 8010-01-M