[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Pages 61705-61706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24909]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46549; File No. SR-NASD-2002-101]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Granting Approval to a Proposed Rule Change and 
Amendment Nos. 1 and 2 Thereto Increasing Fees for the Mutual Fund 
Quotation Service and Adopting a New Fee To Process a Request To Amend 
the Name and/or Symbol of a Fund

September 25, 2002.
    On July 30, 2002, the National Association of Securities Dealers, 
Inc. (``NASD'' or ``Association''), 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 amend NASD Rule 7090 to 
increase fees associated with the Mutual Fund Quotation Service 
(``MFQS'' or the ``Service'') and to adopt a new administrative fee to 
process a request to amend the name and/or symbol of a fund. Nasdaq 
filed Amendment No. 1 to

[[Page 61706]]

the proposal with the Commission on August 5, 2002.\3\ Nasdaq filed 
Amendment No. 2 to the proposal with the Commission on August 15, 
2002.\4\ The proposed rule change, as amended, was published for 
comment in the Federal Register on August 22, 2002.\5\ The Commission 
received no comment letters on the proposal. This order approves the 
proposed rule change, as amended.
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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, 
Nasdaq, to Katherine A. England, Assistant Director, Division of 
Market Regulation (``Division''), Commission, dated August 5, 2002 
(``Amendment No. 1'').
    \4\ See letter from John M. Yetter, Assistant General Counsel, 
Nasdaq, to Katherine A. England, Assistant Director, Division, 
Commission, dated August 14, 2002 (``Amendment No. 2'').
    \5\ See Securities Exchange Act Release No. 46373 (August 16, 
2002), 67 FR 54519.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities association 
\6\ and, in particular, the requirements of section 15A of the Act \7\ 
and the rules and regulations thereunder. The Commission finds 
specifically that the proposed rule change is consistent with section 
15A(b)(5) of the Act,\8\ which requires that the rules of the NASD 
provide for the equitable allocation of reasonable dues, fees and other 
charges among members and issuers and other persons using any facility 
or system which the NASD operates or controls. Nasdaq has represented 
that the fee changes are necessary to ensure that the fees for MFQS 
continue to cover the costs of its operation and that the fees will be 
imposed directly on funds that benefit from the operation of the 
System. Specifically, Nasdaq stated that the proposed fee increase for 
a logon identification to MFQS is necessary to reflect the costs of 
recent upgrades to its security software and hardware to keep pace with 
Internet security threats. Secondly, Nasdaq represented that the 
increase in the application processing fee reflects costs associated 
with upgrading the system's application processing methods, as well as 
general increases in personnel costs. Lastly, Nasdaq represented that 
the fee for processing requests to change the name and/or symbol of a 
fund that is currently listed on MFQS is to compensate for the 
personnel and system costs associated with making these changes.
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    \6\ In approving this proposed rule change, the Commission notes 
that it has considered its impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78o-3.
    \8\ 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,\9\ that the proposed rule change and Amendment Nos. 1 and 2 
thereto (File No. SR-NASD-2002-101) \10\ are approved.
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    \9\ 15 U.S.C. 78s(b)(2).
    \10\ 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. 02-24909 Filed 9-30-02; 8:45 am]
BILLING CODE 8010-01-P