[Federal Register Volume 68, Number 165 (Tuesday, August 26, 2003)]
[Notices]
[Pages 51313-51314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21823]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48374; File No. SR-NASD-2003-129]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc. To Modify the Fees for Trading and Compliance 
Data Available to NASD Member Firms Via NasdaqTrader.com

August 20, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and rule 19b-4 thereunder,\2\ notice is hereby given that 
on August 15, 2003, 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'') the proposed rule change as described in 
items I, II, and III below, which items have been prepared by Nasdaq. 
Nasdaq filed the proposal pursuant to section 19(b)(3)(A)(ii) of the 
Act,\3\ and rule 19b-4(f)(2) thereunder \4\ as one establishing or 
changing a due, fee or other charge imposed by the self-regulatory 
organization, which renders the proposal effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to modify the fees for trading and compliance data 
available to NASD member firms via NasdaqTrader.com. The text of the 
proposed rule change is below. Proposed new language is in italics; 
proposed deletions are in brackets.
7000. Charges for Services and Equipment
7010. System Services
    (a)-(m) No change.
    (n) NasdaqTrader.com Trading and Compliance Data Package Fee.
    The charge to be paid by an NASD Member Firm for each entitled user 
receiving Nasdaq Trading and Compliance Data Package via 
NasdaqTrader.com is $100 [75] per month (monthly maximum of 25 
Historical Research Reports) or $130 [100] per month (monthly maximum 
of 100 Historical Research Reports). The Nasdaq Trading and Compliance 
Data Package includes:
    (1) Daily Share Volume Report for a Broker/Dealer (Member Firm's 
information only).
    (2) Monthly Compliance Report Cards (Member Firm's information 
only).
    (3) Monthly Summaries.
    (4) Historical Research Reports.
    (i) Market Maker Price Movement Report.
    (ii) Equity Trade Journal (Member Firm's information only).
    The Association may modify the contents of the Nasdaq Trading and 
Compliance Data Package from time to time based on subscriber interest.
    (o)-(s) No change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, Nasdaq included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
item IV below. Nasdaq has prepared summaries, set forth in sections A, 
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Nasdaq is proposing to modify the fees for trading and compliance 
data available to NASD member firms via NasdaqTrader.com.
    NasdaqTrader.com allows NASD member firms to obtain data regarding 
their own trading volume in securities in which they report volume as 
well as information concerning their compliance with NASD rules. 
Specifically, NASD member firms that subscribe to Nasdaq's Trading and 
Compliance Data Package (``Data Package'') can obtain the following 
reports: (1) Daily Share Volume Reports, which provide a member firm's 
own daily share volume for each security in which the firm reports 
volume; (2) Monthly Compliance Report Cards, which outline a firm's own 
compliance with various NASD rules; (3) Monthly Summaries, which 
provide monthly trading volume statistics for the top 50 market 
participants broken down by industry sector, security or type of 
trading; and (4) Historical Research Reports, which provide a variety 
of historical trading data such as a market maker's quote updates for a 
security on a specified date or trades reported through the Automated 
Confirmation Transaction Service (``ACT'') by a NASD member firm for a 
selected security and date.
    Use of this service is voluntary and NASD member firms have the 
option of subscribing to two different levels of the Data Package. The 
``basic'' level, which has a fee of $75 per month, allows access to a 
maximum of 25 Historical Research Reports per month. The ``premium'' 
level, which has a fee of $100 per month, allows access to a maximum of 
100 Historical Research Reports per month. These fees have not 
increased since the launch of the service in December 1998, even though 
several enhancements have been made since that time. Some of these 
enhancements include: (1) Various additional types of Monthly 
Compliance Report Card reports that show such things as compliance with 
the short sale bid test and ACT reporting; (2) detailed trade data 
specific to each Monthly Compliance Report Card; and (3) additional 
types of Historical Research Reports such as SuperMontage Activity 
Reports and Daily Security Position Data Reports.
    In order to help cover the costs associated with the maintenance of 
the Data Package service as well as the

[[Page 51314]]

implementation of additional enhancements to the service in the near 
future, Nasdaq proposes to increase the subscription fee for the 
service. Specifically, Nasdaq proposes to increase the subscription fee 
for the ``basic'' level from $75 to $100 per month and increase the fee 
for the ``premium'' level from $100 to $130 per month. As previously 
mentioned, this increase in subscription fees will be the first such 
increase since the launch of the Data Package service in December 1998.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 15A of the Act,\5\ in general, and with 
section 15A(b)(5) of the Act,\6\ in particular, in that 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 the NASD operates or controls. Specifically, use of the 
Data Package service is voluntary and the subscription fees will be 
imposed on all member firms equally based on the level of service 
selected. In addition, the increase in fees will help cover the costs 
associated with maintaining and enhancing the Data Package service.
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    \5\ 15 U.S.C. 78o-3.
    \6\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of rule 19b-4 
thereunder,\8\ because it establishes or changes a due, fee, or other 
charge imposed by the Association. At any time within 60 days of the 
filing of the proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. Copies of 
the submission, all subsequent amendments, all written statements with 
respect to the proposed rule change that are filed with the Commission, 
and all written communications relating to the proposed rule change 
between the Commission and any person, other than those that may be 
withheld from the public in accordance with the provisions of 5 U.S.C. 
552, will be available for inspection and copying in the Commission's 
Public Reference Room. Copies of such filing will also be available for 
inspection and copying at the principal office of the Association. All 
submissions should refer to file number SR-NASD-2003-129 and should be 
submitted by September 16, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-21823 Filed 8-25-03; 8:45 am]
BILLING CODE 8010-01-P