[Federal Register Volume 66, Number 203 (Friday, October 19, 2001)]
[Notices]
[Pages 53276-53280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26401]


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SECURITIES AND EXCHANGE COMMISSION


Self Regulatory Organizations; Notice of Filing of a Proposaed 
Rule Change by the National Association of Securities Dealers, Inc., 
Relating to Nasdaq National Market Execution System Fees Charged to 
Non-Members

October 12, 2001.
    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 9, 2001, the National Association of Securities Dealers, 
Inc. (``NASD'') through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nadaq'') 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 Nasdaq. On October 11, 
2001, Nasdaq filed Amendment No. 1 with the Commission.\3\ The 
Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Letter from John M. Yetter, Assistant General Counsel, 
Office of General Counsel, Nasdaq, to Katherine A. England, 
Assistant Director, Division of Market Regulation (``Division''), 
Commission (October 11, 2001) (``Amendment No. 1''). Amendment No. 1 
is a technical amendment that amends the proposed rule language to 
clarify that the filing seeks to modify the fees for use of NNMSs by 
non-NASD members. Amendment No. 1 also notes that the rule filing, 
once effective, will be implemented the later of (i) December 1, 
2001, or (ii) the first day of the month immediately following 
Commission approval, and will remain in effect, on a pilot basis, 
until November 30, 2002.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Nasdaq proposes to modify the fees for use of the Nasdaq National 
Markett Execution System (``NNMS'' or ``SuperSOES'') charged to 
national securities exchanges trading Nasdaq-listed securities pursuant 
to grants of unlisted trading privileges (``UTP Exchanges''), on a 
pilot basis.\4\ The rule filing will become effective upon approval by 
the Commission and will be implemented the later of (i) December 1, 
2001, or (ii) the first day of the month immediately following 
Commission approval. The rule filing will remain in effect, on a pilot 
basis, until November 30, 2002. 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 in italics; proposed deletions are in brackets.
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    \4\ Nasdaq also filed a companion rule filing (SR-NASD-2001-71) 
to apply these rule changes to NASD members. See Securities Exchange 
Act Release No. 44918 (October 10, 2001). SR-NASD-2001-71, proposes 
on a pilot basis, or: (1) Modify the fees for use of SuperSOES; (2) 
modify Nasdaq's liquidty provider rebate; (3) institute a quotation 
update charge; and (4) introduce a mechamism for sharing market data 
revenue with NASD members that report substantially all of their 
trades through the Automated Confirmation Transaction Service 
(``ACT''). SR-NASD-2001-71 is effective upon filing, and Nasdaq will 
implement it for a pilot period commencing on December 1, 2001 and 
ending on November 30, 2002.
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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:
    (A) inside bid/ask quotations calculated for securities listed in 
The Nasdaq Stockk Market and securities quoted in the OTCC Bulletin 
Board (OTCBB) service;
    (B) the individual quotations or indications of interest of broker/
dealers utilizing the OTCBB service; and
    (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.

[[Page 53277]]

(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 consist of two components, a ``Base Credit'' and a 
``Supplemental Credit.'' \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) 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 taht 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) ``Member's 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 Execution Services.
    (1) No change.
    (2) Nasdaq National Market Execution System (SuperSOES).\6\
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    \6\ 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 December 1, 2001 and 
lasting until November 30, 2002, the per share charge will be 
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)
Full Contribution UTP Exchanges: $0.003 per share executed for all 
fully or partially executed orders (entering party only)

    (ii) Definitions. The following definitions shall apply to this 
Rule:
    a. ``Full Contribution Member'' shall mean an NASD member that 
reports substantially all of its trades 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.
    (3) No change.
    (4) Liquidity provider rebate.
    For a pilot commencing on December 1, 2001 and lasting until 
November 30, 2002:
    (A) Full 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 $0.001 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.
    (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 Market 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 at the Nasdaq quotation montage:

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

    (j)-(q) No change.

[[Page 53278]]

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 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

1. Purpose
    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.\7\ 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, 2001, Nasdaq filed 
modification to the pricing structure for SelectNet and the NNMS.\8\ 
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 introduced a 
liquidity provider rebate for NASD members.\9\
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    \7\ See Securities Exchange Act Release No. 42344 (January 14, 
2000), 65 FR 3987 (January 25, 2000) (SR-NASD-99-11).
    \8\ 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.
    \9\ 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 and SR-NASD-2001-71, Nasdaq is making additional 
modifications to the fees for use of the NNMS and the liquidity provide 
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. Nasdaq is also introducing a mechanism for sharing market data 
revenue with NASD members that report substantially all trades through 
ACT. 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 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 institution 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.\10\
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    \10\ 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,\11\ 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

[[Page 53279]]

participant that charges an access fee to market participants accessing 
its quotation through the NNMS.
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    \11\ See supra note 9.
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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 \12\ and similar revenue 
sharing programs established by UTP Exchanges.\13\ A member's total 
credit will consist of two parts, a Base Credit and a Supplemental 
Credit.
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    \12\ See NASD Rule 7010(c)(2).
    \13\ 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.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the Act, including Section 15A(b)(5) of the Act,\14\ 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 15A(b)(6) of the Act,\15\ which requires rules 
that are not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \14\ 15 U.S.C. 78o-3(b)(5).
    \15\ 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,' not `discrimination' simpliciter * * *.'' \16\ 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 operation 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.'' \17\
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    \16\ 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)).
    \17\ 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 the 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 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 does not believe that the proposed rule change will impose 
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

    Nasdaq did not solicit or receive written comments on the proposed 
rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the NASD consents, the Commission will:
    (A) by order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

[[Page 53280]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 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-2001-72 and should be submitted by November 9, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-26401 Filed 10-18-01; 8:45 am]
BILLING CODE 8010-01-M