[Federal Register Volume 69, Number 143 (Tuesday, July 27, 2004)]
[Notices]
[Pages 44700-44701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17010]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50037; File No. SR-NASD-2004-102]


Self-Regulatory Organizations; Notice of Filing of a Proposed 
Rule Change by the National Association of Securities Dealers, Inc. To 
Establish a Fee for Company Profile Reports of OTCBB Issuers

July 19, 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 July 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, II, 
and III 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 add a fee for the Company Profile Report to the 
fee schedule for OTC Bulletin Board (``OTCBB'') historical trading 
activity reports. Nasdaq will implement the proposed fee as soon as 
practicable after Commission approval.
    The text of the proposed rule change is available from the 
principal office of Nasdaq and at the Commission's Public Reference 
Room.

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 modify the fee schedule for the 
OTCBB historical trading activity reports to add a fee of $26 for a 
Company Profile Report for OTCBB issuers. The Company Profile Reports 
are research reports produced, maintained, and owned by a third-party 
vendor.\3\ The proposal seeks to provide OTCBB.com users with the 
convenience of ordering third-party research reports for OTCBB issuers 
directly from the OTCBB.com website. Nasdaq believes that this will 
enable OTCBB.com users to obtain relevant information about OTCBB 
issuers without having to search the Internet or visit multiple Web 
sites.
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    \3\ The current third-party vendor for the Company Profile 
Reports is Knobias, LLC (``Knobias''). Knobias receives much of its 
historical trading data from Tradeline, Inc. (``Tradeline''). 
Tradeline subscribes to a number of Nasdaq data feed services. 
Telephone conversation among Eric Lai, Office of General Counsel, 
Nasdaq; Tim Fox, Attorney, Division of Market Regulation 
(``Division''), Commission; and Ross Hurwitz, Summer Honors Intern, 
Division, Commission on July 14, 2004.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act \4\ in general and with 
Section 15A(b)(5) of the Act \5\ in particular, in that the proposed 
fee would provide for the equitable allocation of reasonable charges 
among the persons ordering a Company Profile Report from OTCBB.com.
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    \4\ 15 U.S.C. 78o-3.
    \5\ 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.

[[Page 44701]]

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 Nasdaq 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 proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-NASD-2004-102 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NASD-2004-102. This 
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, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
Nasdaq. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NASD-2004-102 and should be submitted on or before August 17, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-17010 Filed 7-26-04; 8:45 am]
BILLING CODE 8010-01-P