[Federal Register Volume 67, Number 198 (Friday, October 11, 2002)]
[Notices]
[Pages 63485-63486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26026]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46594; File No. SR-NASD-2002-109]


Self-Regulatory Organizations; Order Approving a Proposed Rule 
Change by the National Association of Securities Dealers, Inc. Relating 
to Fees for Nasdaq's InterMarket

October 3, 2002.
    On August 8, 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: (i) Modify the execution fees for Nasdaq 
InterMarket trades executed through the Intermarket Trading System 
(``ITS'') and Nasdaq's Computer Assisted Execution System (``CAES''); 
and (ii) establish a credit for the liquidity provider for executions 
via ITS and CAES.\3\ The proposed rule change was published in the 
Federal Register on September 3, 2002.\4\ The Commission received no 
comments on the proposed rule change. 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\ On June 13, 2002, the NASD, through its subsidiary, Nasdaq, 
filed a similar proposed rule change that was effective upon filing 
pursuant to Section 19(b)(3)(A) of the Act. 15 U.S.C. 78s(b)(3)(A). 
See Securities Exchange Act Release No. 46153 (July 1, 2002), 67 FR 
45164 (July 8, 2002) (SR-NASD-2002-68). The proposal was summarily 
abrogated by Commission order on July 2, 2002. See Securities 
Exchange Act Release No. 46159, 67 FR 45775 (July 10, 2002).
    \4\ See Securities Exchange Act Release No. 46419 (August 27, 
2002), 67 FR 56333.
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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.\5\ 
Specifically, the Commission believes that the proposal is consistent 
with Section 15A(b)(5) of the Act,\6\ which requires that the rules of 
the association 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 association operates or 
controls, and Section 15A(b)(6) of the Act,\7\ which requires, among 
other things, that the rules of an association promote just and 
equitable

[[Page 63486]]

principles of trade, remove impediments to and perfect the mechanism of 
a free and open market and a national market system and, in general, 
protect investors and the public interest. The Commission believes that 
the proposed fee structure, which is similar to the fee structures in 
place for Nasdaq's SuperSOES and SuperMontage systems,\8\ may encourage 
members to provide additional liquidity to support executions through 
Nasdaq's InterMarket and thereby enhance its competitiveness.
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    \5\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3(b)(5).
    \7\ 15 U.S.C. 78o-3(b)(6).
    \8\ See Securities Exchange Act Release Nos. 44910 (October 5, 
2001), 66 FR 52167 (October 12, 2001) (SR-NASD-2001-67); and 45906 
(May 10, 2002), 67 FR 34965 (May 16, 2002) (SR-NASD-2002-44).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NASD-2002-109) is approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to the delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-26026 Filed 10-10-02; 8:45 am]
BILLING CODE 8010-01-P