[Federal Register Volume 68, Number 204 (Wednesday, October 22, 2003)]
[Notices]
[Pages 60430-60431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26647]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48637; File No. SR-NASD-2003-118]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Granting Approval of Proposed Rule Change by the 
National Association of Securities Dealers, Inc. To Introduce Fees for 
Persons That Are Not NASD Members Using the Financial Information 
Exchange Protocol To Connect to Nasdaq

October 15, 2003.
    On July 31, 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

[[Page 60431]]

Exchange Act of 1934 (``Act'')[hairsp][hairsp]\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to propose connectivity and 
testing fees for persons that are not NASD members wishing to use the 
Financial Information Exchange (``FIX'') protocol to connect to Nasdaq. 
The proposed rule change was published for comment in the Federal 
Register on September 12, 2003.\3\ The Commission received no comments 
on the proposal. 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\ See Securities Exchange Act Release No. 48452 (September 5, 
2003), 68 FR 53767.
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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.\4\ 
Specifically, the Commission finds that the proposed rule change is 
consistent with the provisions of Section 15A(b)(5) of the Act,\5\ 
which requires that the rules of the NASD 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 NASD 
operates or controls.
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    \4\ 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).
    \5\ 15 U.S.C. 78o-3(b)(5).
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    The Commission finds that the proposed rule change is reasonably 
designed to accomplish these ends because the introduction of the FIX 
protocol as a means of accessing SuperMontage will expand the 
connectivity options available to Nasdaq's subscribers, and thereby 
enhance transparency in SuperMontage. In addition, the Commission notes 
that Nasdaq has represented that the proposed fees for FIX connectivity 
and testing are similar in structure and dollar amount to existing fees 
for computer-to-computer interface (``CTCI'') and application 
programming interface (``API'') connectivity. The Commission notes 
further that firms that already have dedicated CTCI circuits will be 
able to use FIX over their existing circuits, and therefore will not 
require that new circuits be installed. Firms that do not already have 
CTCI circuits may either obtain circuits to support both CTCI and FIX 
at the same prices that currently apply to CTCI, or may opt to obtain 
circuits to support FIX alone at a reduced price. The Commission 
believes that the proposed rule supports the efficient use of existing 
systems and ensures that the charges associated with such use are 
allocated equitably.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-NASD-2003-118), be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-26647 Filed 10-21-03; 8:45 am]
BILLING CODE 8010-01-P