[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Page 61705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24908]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46551; File No. SR-NASD-2002-111]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the National Association of Securities Dealers, 
Inc. To Amend Nasdaq's Transaction Credit Pilot Program for Exchange-
Listed Securities To Eliminate Volume Eligibility Thresholds

September 25, 2002.
    On August 9, 2002, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq''), filed with the Securities and Exchange Commission 
(``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 modify Nasdaq's transaction credit pilot 
program for exchange-listed securities. Specifically, the proposed rule 
change would eliminate the requirement that a member print an average 
of 500 daily trades of Tape A securities during a quarter to qualify 
for Tape A market data revenue sharing, as well as the comparable 
volume threshold for Tape B securities. The proposed rule change was 
published for notice and comment in the Federal Register on August 21, 
2002.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 46357 (August 15, 
2002), 67 FR 54245.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities association \4\ and, in 
particular, the requirements of section 15A(b)(5) \5\ of the Act. 
Section 15A(b)(5) requires the equitable allocation of reasonable fees 
and charges among members and other users of facilities operated or 
controlled by a national securities association. The Commission 
believes it is reasonable for Nasdaq to eliminate the thresholds, so 
that the market data revenue sharing program will be available to all 
members that participate in the InterMarket, regardless of their level 
of activity.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-3(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-NASD-2002-111) be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    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. 02-24908 Filed 9-30-02; 8:45 am]
BILLING CODE 8010-01-P