[Federal Register Volume 69, Number 44 (Friday, March 5, 2004)]
[Notices]
[Page 10494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4905]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49339; File No. SR-NASD -2003-196]


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

February 27, 2004.
    On December 29, 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-4 
thereunder,\2\ a proposed rule change to modify fees for NASD members 
using the Financial Information Exchange (``FIX'') protocol to connect 
to Nasdaq. The proposed rule change was published for comment in the 
Federal Register on January 23, 2004.\3\ The Commission received no 
comment letters 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. 49091 (January 16, 
2004), 69 FR 3407 (January 23, 2004).
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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 believes that the proposed rule change is 
consistent with the provisions of section 15A \5\ and 15A(b)(5) of the 
Act,\6\ 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. Under the modified fee schedule, firms with existing FIX 
circuits may continue to use them at current prices, however Nasdaq 
will no longer offer non-Nasdaq members the option of using FIX through 
CTCI or FIX-only circuits.\7\
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered its impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-3.
    \6\ 15 U.S.C. 78o-3(b)(5).
    \7\ As of January 1, 2004, Nasdaq stopped offering new 
subscribers that are Nasdaq members the option of using FIX through 
CTCI or FIX-only circuits. See Securities Exchange Act Release No. 
49092 (January 16, 2004), 69 FR 3408 (January 23, 2004).
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    Nasdaq represents that FIX connectivity has not proved as popular 
among firms as has extranet connectivity. As stated above, while the 
proposed rule change will permit firms with FIX circuits to continue to 
use them at current prices, Nasdaq has represented that it believes the 
more economical extranet connectivity is likely to be the preferred 
method. The Commission therefore believes that the proposed rule change 
is likely to have a minimal impact on firms' connectivity to the 
Nasdaq, and further that the proposed rule change will not cause any 
disruption to firms currently using FIX connectivity.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-NASD-2003-196) is 
approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    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. 04-4905 Filed 3-4-04; 8:45 am]
BILLING CODE 8010-01-P