[Federal Register Volume 69, Number 92 (Wednesday, May 12, 2004)]
[Notices]
[Pages 26421-26422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10759]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49663; File No. SR-NASD-2004-036]


Self-Regulatory Organizations; Order Granting Approval of a 
Proposed Rule Change by the National Association of Securities Dealers, 
Inc. To Revise and Update the Fee Schedule for OTC Bulletin Board 
Historical Trading Activity Reports

May 6, 2004.

I. Introduction

    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''), 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 revise and update the fee schedule for the OTC 
Bulletin Board (``OTCBB'') historical trading activity reports. The 
proposal was published for comment in the Federal Register on April 1, 
2004.\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. 49486 (March 26, 
2004), 69 FR 17254.
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II. Description of Proposed Rule Change

    The proposed rule change would revise the fee schedule for the 
OTCBB historical trading activity reports that are available through 
the OTCBB website (``OTCBB.com''). The proposal would establish that 
the fees that Nasdaq would charge for the Issues Summary Statistics 
reports and the Intra-Day Quote and Intra-Day Time and Sales Data 
reports of OTCBB securities are identical to the fees assessed for 
similar reports for Nasdaq securities that are available through the 
website for Nasdaq traders (``NasdaqTrader.com''). In addition, the 
proposed rule change would establish a new fee for an up-to-date 
directory listing the contact information of all OTCBB issuers.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the Act and the rules and regulations thereunder applicable to a 
national securities association.\4\ Specifically, the Commission finds 
that the proposal is consistent with the requirements of Section 
15A(b)(5) and (b)(6) of the Act.\5\ Section 15A(b)(5) requires that the 
rules of a registered national securities association 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 association operates or controls. Section 15A(b)(6) requires, 
among other things, that the rules of national securities association 
not be designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \4\ In approving the proposal, the Commission has considered the 
rule's impact on efficiency, competition, and capital formation. See 
15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o(b)(5) and (b)(6).
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    The Commission notes that the pricing structure for the historical 
trading activity reports available through OTCBB.com for OTCBB 
securities is identical to the pricing structure for similar reports 
available through NasdaqTrader.com for Nasdaq securities. The 
Commission has previously determined that the fee structure for these 
NasdaqTrader.com

[[Page 26422]]

reports is consistent with the Act.\6\ The Commission believes that a 
similar fee structure applied to historical data for OTCBB securities 
is also consistent with the Act. Finally, the Commission believes that 
the fee that Nasdaq proposes to charge for the All OTCBB Issuer 
Directory is consistent with the Act.
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    \6\ See Securities Exchange Act Release No. 45102 (November 26, 
2001), 67 FR 59830 (November 30, 2001) (Order approving SR-NASD-
2001-59).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NASD-2004-036) be, and hereby 
is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-10759 Filed 5-11-04; 8:45 am]
BILLING CODE 8010-01-P