[Federal Register Volume 68, Number 194 (Tuesday, October 7, 2003)]
[Notices]
[Pages 57945-57946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25340]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48581; File No. SR-NASD-2003-111]


Self Regulatory Organizations; Order Granting Approval to 
Proposed Rule Change and Amendment Nos. 1, 2, and 5 Thereto by the 
National Association of Securities Dealers, Inc., Relating to Charges 
for ViewSuite Services Set Forth in NASD Rule 7010(q)

October 1, 2003.
    On July 17, 2003, 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-6 thereunder,\2\ a 
proposed rule change to institute a pilot program for a one-year period 
to simplify the structure of the fees assessed for the ViewSuite 
products under NASD Rule 7010(q), by combining the current DepthView, 
PowerView, and TotalView products into one single entitlement package. 
On August 11, 2003, Nasdaq filed Amendment No. 1 that entirely replaced 
the original rule filing.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-6.
    \3\ See Letter from Mary M. Dunbar, Vice President and Deputy 
General Counsel, Nasdaq, to Katherine A. England, Assistant 
Director, Division of Market Regulation (``Division''), Commission, 
dated August 8, 2003 (``Amendment No. 1'').
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    The proposed rule change, as amended by Amendment No. 1, was 
published for comment in the Federal Register on August 21, 2003.\4\ 
The Commission received no comments on the proposal. On September 22, 
2003, Nasdaq filed Amendment No. 2 to the proposed rule change.\5\ On 
September 24, 2003, Nasdaq filed Amendment No.

[[Page 57946]]

3 to the proposed rule change.\6\ On September 26, 2003, Nasdaq filed 
Amendment No. 4.\7\ On September 29, 2003, Nasdaq filed Amendment No. 
5.\8\
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    \4\ See Securities Exchange Act Release No. 48358 (August 15, 
2003), 68 FR 50566 (August 21, 2003).
    \5\ See Letter from Mary M. Dunbar, Vice President and Deputy 
General Counsel, Nasdaq, to Katherine A. England, Assistant 
Director, Division, Commission, dated September 17, 2003 
(``Amendment No. 2''). In Amendment No. 2, Nasdaq stated that it was 
changing the starting date of the proposed pilot to October 1, 2003. 
This is a technical amendment and is not subject to notice and 
comment.
    \6\ See Letter from Eleni Constantine, Office of General 
Counsel, Nasdaq, to Katherine A. England, Assistant Director, 
Division, Commission, dated September 24, 2003 (``Amendment No. 
3''). In Amendment No. 3, Nasdaq amended the rule text of the 
proposal to clarify that the starting date of the proposed pilot is 
October 1, 2003.
    \7\ See Letter from Eleni Constantine, Office of General 
Counsel, Nasdaq, to Katherine A. England, Assistant Director, 
Division, Commission, dated September 25, 2003 (``Amendment No. 
4''). Nasdaq filed Amendment No. 4 to correct typographical errors 
made in Amendment No. 3. Amendment No. 4 completely replaced and 
superseded Amendment No. 3.
    \8\ See Letter from Eleni Constantine, Office of General 
Counsel, Nasdaq, to Katherine A. England, Assistant Director, 
Division, Commission, dated September 29, 2003 (``Amendment No. 
5''). Nasdaq filed Amendment No. 5 to correct typographical errors 
made in Amendment No. 4. Amendment No. 5 completely replaced and 
superseded Amendment Nos. 3 and 4. This is a technical amendment and 
is not subject to notice and comment.
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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.\9\ The Commission finds that the proposal is consistent 
with Section 15A of the Act \10\ in general, and with Section 15A(b)(5) 
of the Act,\11\ in particular, in that the proposal provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
members and issuers and other persons using any facility or system that 
the NASD operates or controls. The Commission notes that the pilot 
ViewSuite entitlement program is available to all subscribers of the 
ViewSuite products. All subscribers would pay a single price for the 
entitlement package. Thus, for most of ViewSuite's current subscribers, 
the ViewSuite monthly controlled device fees would be lower than what 
they are currently paying. The only exception would be for current 
DepthView professional subscribers, whose fees would increase $20 per 
month. The increased monthly fee for DepthView professional 
subscribers, however, is due to the fact that the new single ViewSuite 
entitlement includes NQDS data, which cannot be discounted by 
Nasdaq.\12\
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    \9\ 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).
    \10\ 15 U.S.C. 78o-3.
    \11\ 15 U.S.C. 78o-3(b)(5).
    \12\ Nasdaq has represented that the increase in Depth View 
pricing reflects the addition of NQDS, which cannot be discounted 
because it is part of the Nasdaq UTP Plan. See Securities Exchange 
Act Release No. 48358 (August 15, 2003), 68 FR 50566 (August 21, 
2003).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\13\ that the proposed rule change (File No. SR-NASD-2003-111), as 
amended, be, and it hereby is, approved.
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-25340 Filed 10-6-03; 8:45 am]
BILLING CODE 8010-01-P