[Federal Register Volume 67, Number 240 (Friday, December 13, 2002)]
[Notices]
[Pages 76770-76771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31402]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46951; File No. SR-NASD-2002-121]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the National Association of Securities Dealers, Inc. To 
Modify Application of Additional Circuit/SDP Charge Under Rule 7010(f) 
to Non-NASD Members

December 6, 2002.
    On September 12, 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 application of 
Additional Circuit/SDP Charge under NASD Rule 7010(f) to Non-NASD 
Members.\3\ Specifically, Nasdaq proposes to impose the Additional 
Circuit/SDP Charge under NASD Rule 7010(f) on those subscribers who do 
not utilize existing T1 capacity efficiently

[[Page 76771]]

by placing 18 service delivery platforms (``SDPs'') on each T1 
circuit.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Nasdaq also submitted a proposed rule change to modify the 
conditions under which members pay the Additional Circuit/SDP 
Charge. See Securities Exchange Act Release No. 46695 (October 21, 
2002), 67 FR 65819 (October 28, 2002) (SR-NASD-2002-120).
    \4\ Currently, the Additional Circuit/SDP Charge only applies if 
a subscriber does not place 6 SDPs on each T1 circuit.
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    The proposed rule change was published for comment in the Federal 
Register on October 28, 2002.\5\ The Commission received no comments on 
the proposal.
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    \5\ See Securities Exchange Act Release No. 46696 (October 21, 
2002), 67 FR 65821 (October 28, 2002) (SR-NASD-2002-121).
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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.\6\ The 
Commission finds specifically that the proposed rule change promotes 
the objectives of Section 15A(b)(6) of the Act,\7\ which requires, 
among other things, that the rules of the association be designed to 
facilitate transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, because the increased efficiency of Nasdaq's T1 circuits, which 
will expand the available capacity of Nasdaq's Enterprise Wide Network 
II (``EWN II'') should enhance Nasdaq's ability to keep pace with 
future growth in trading volumes.
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    \6\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78o-3(b)(6).
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    In addition, the Commission finds that the proposed rule change is 
consistent with Section 15A(b)(5) of the Act \8\ which requires that 
the rules of the association provide for the equitable allocation of 
reasonable dues, fees, and other charges among its members and issuers 
and other persons using its facilities.
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    \8\ 15 U.S.C. 78o-3(b)(5).
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    The Commission notes that this fee applies to members and non-
members equally.\9\
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    \9\ See supra note 3.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (File No. SR-NASD-2002-121) is 
hereby approved.
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    \10\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\11\

Jill M. Peterson,
Assistant Secretary.
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    \11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 02-31402 Filed 12-12-02; 8:45 am]
BILLING CODE 8010-01-P