[Federal Register Volume 69, Number 63 (Thursday, April 1, 2004)]
[Notices]
[Pages 17254-17255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7323]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49486; File No. SR-NASD-2004-036]


Self-Regulatory Organizations; Notice of Filing of a Proposed 
Rule Change by the National Association of Securities Dealers, Inc. To 
Modify NASD Rule 7010(p)(3) To Revise and Update the Fee Schedule for 
OTC Bulletin Board Historical Trading Activity Reports

March 26, 2004.
    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 March 1, 2004, 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'') the proposed rule change as described in items I and 
II below, which items have been prepared by Nasdaq. 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.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq proposes to revise and update the fee schedule for OTC 
Bulletin Board (``OTCBB'') historical trading activity reports. Nasdaq 
has stated that it would implement the revised and updated fee schedule 
on March 15, 2004, if the Commission approves the proposed rule change 
by that date, or as soon as practicable following Commission approval 
of the proposed rule change, if such approval occurs after March 15, 
2004.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are in [brackets.]
7010. System Services
    (a)-(o) (No change).
    (p) Historical Research and Administrative Reports
    (1) (No change).
    (2) (No change).
    (3) The charge to be paid by the purchaser of an Historical 
Research Report regarding OTC Bulletin Board security or other OTC 
security through the OTCBB.com website shall be [as follows] determined 
in accordance with the following schedule:
    [(A) Daily Detailed Reports--$7 per day, per security and/or market 
participant for reports containing 15 fields or less. $15 per day, per 
security and/or market participant for reports exceeding 15 fields.]
    [(B) Summary Level Activity Reports--$25 per report.]

------------------------------------------------------------------------
                                         Number of fields of information
                                                  in the report
                                        --------------------------------
                                                                 16 or
                                            1-10      11-15       more
------------------------------------------------------------------------
A. Issues Summary Statistics...........
    For a security for a day...........        $10        $15        $20
    For a security for a month,                 20         30         40
     quarter, or year..................
    For all issues for a day...........         50         75        100
    For all issues for a month,                100        150        200
     quarter, or year..................
B. Intra-Day Quote and Intra-Day Time
 and Sales Data........................
    For a security and/or a market              15         25         35
     participant for a day.............
    For all market participants for a           30         40         50
     day or for all securities for a
     day (For purposes of this report,
     market participants are those
     entities qualified to participate
     in the OTCBB service pursuant to
     NASD Rule 6540(a) and (b))........
C. Nasdaq may, in its discretion,
 choose to make a report that
 purchasers wish to obtain every
 trading day available on a
 subscription discount basis. In such
 cases, the price for a subscription to
 receive a report every trading day in
 a month shall be the applicable rate
 to receive the report for a day times
 20; the price for a subscription to
 receive the report for every trading
 day in a quarter shall be the
 applicable rate to receive the report
 every day times 60; and the price for
 a subscription to receive a report
 every trading day in a year shall be
 the applicable rate to receive the
 report for a day times 240............
D. ALL OTCBB Issurers Directory........                   250
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[[Page 17255]]

* * * * *

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
    The proposed rule change seeks to revise and update the fee 
schedule for the OTCBB historical trading activity reports to bring the 
fees and types of reports in line with those charged for similar 
reports available for Nasdaq listed securities on NasdaqTrader.com. The 
proposed revised fee schedule seeks to ensure that the costs of 
providing such reports are allocated equitably among the users of such 
reports. Nasdaq believes that the proposed fee schedule is reasonable 
and that the per-field pricing structure for OTCBB.com reports is 
similar to the per-field pricing structure for NasdaqTrader.com 
reports.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 15A of the Act,\3\ in general, and with 
section 15A(b)(5) of the Act,\4\ in particular, in that the revised 
proposed fee schedule would provide for the equitable allocation of 
reasonable charges among the persons ordering historical trading 
activity reports from NasdaqTrader.com and OTCBB.com.
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    \3\ 15 U.S.C. 78o-3.
    \4\ 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 would result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the NASD consents, the Commission will:
    (A) By order approve such proposed rule change; or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. Comments 
may also be submitted electronically at the following e-mail address: 
[email protected]. All comment letters should refer to File No. SR-
NASD-2004-036. The file number should be included on the subject line 
if e-mail is used. To help the Commission process and review your 
comments more efficiently, comments should be sent in hardcopy or by e-
mail but not by both methods. 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 Nasdaq. All 
submissions should refer to the File No. SR-NASD-2004-036 and should be 
submitted by April 22, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR.200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-7323 Filed 3-31-04; 8:45 am]
BILLING CODE 8010-01-P