[Federal Register Volume 68, Number 83 (Wednesday, April 30, 2003)]
[Notices]
[Page 23171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10630]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47726; File No. SR-NASD-2002-107]


Self-Regulatory Organizations; Order Granting Approval to 
Proposed Rule Change and Amendment Nos. 1, 2, 3, and 4 Thereto by the 
National Association of Securities Dealers, Inc. to Retroactively 
Establish Maximum Execution Fees and Liquidity Provider Rebates for 
SuperSoes Transactions in Low-Priced Securities

April 23, 2003.
    On August 6, 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 retroactively establish 
maximum execution fees and liquidity provider rebates for SuperSoes 
transactions in low-priced securities.\3\ On August 19, 2002; August 
30, 2002; October 9, 2002; and February 21, 2003, Nasdaq submitted 
Amendment Nos. 1, 2, 3, and 4, respectively, to the proposed rule 
change.\4\ The proposed rule change, as amended, was published for 
comment in the Federal Register on March 19, 2003.\5\ The Commission 
received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Commission notes that Nasdaq also submitted a separate 
proposed rule change that established these same fee and rebate 
limits on a going-forward basis. See Securities Exchange Act Release 
No. 47441 (March 4, 2003), 68 FR 11432 (March 10, 2003) (File No. 
SR-NASD-2002-106).
    \4\ See letters from Thomas P. Moran, Associate General Counsel, 
Nasdaq, to Katherine A. England, Assistant Director, Division of 
Market Regulation (``Division''), Commission, dated August 16, 2002, 
August 30, 2002, October 9, 2002, and February 20, 2003.
    \5\ See Securities Exchange Act Release No. 47488 (March 12, 
2003), 68 FR 13356.
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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 proposal is consistent with the requirements of 
section 15A(b)(5) of the Act,\8\ because it provides for the equitable 
allocation of reasonable dues, fees, and other charges among members 
and issuers and other persons using any facility or system which NASD 
operates. The Commission believes that the proposed fee and rebate 
limits should balance the interests of lowering execution costs for 
market participants and providing reasonable rebates for transactions 
involving low-priced securities.
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    \6\ 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).
    \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, as amended, (File No. SR-NASD-
2002-107) be, and it hereby 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 delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-10630 Filed 4-29-03; 8:45 am]
BILLING CODE 8010-01-P