[Federal Register Volume 69, Number 177 (Tuesday, September 14, 2004)]
[Notices]
[Pages 55485-55486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2178]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50325; File No. SR-NASD-2004-102]


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

September 7, 2004.
    On July 1, 2004, the National Association of Securities Dealers, 
Inc. (``NASD'') through its subsidiary, the Nasdaq Stock Market, Inc. 
(``Nasdaq''), submitted to 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 establish a fee of $26 for third-party research 
reports, Company Profile Reports, to the fee schedule for OTC Bulletin 
Board (``OTCBB'') historical trading activity reports. The proposed 
reports, which are produced, maintained, and owned by a third-party 
vendor, would be made available through the OTCBB Web site 
(``OTCBB.com'').\3\ The Federal Register published the proposed rule 
change for comment on July 27, 2004.\4\ The Commission received no 
comments on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Nasdaq represented that 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.
    \4\ Securities Exchange Act Release No. 50037 (July 19, 2004), 
69 FR 44700.
---------------------------------------------------------------------------

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder that are applicable to a national 
securities association.\5\ In particular, the Commission believes that 
the proposed rule change is consistent with section 15A(b)(5) of the 
Act,\6\ which requires, among other things, 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 association operates or controls. The 
Commission believes that the proposed rule change establishes a 
reasonable fee for OTCBB.com users that seek third-party research 
reports of OTCBB issuers.
---------------------------------------------------------------------------

    \5\ In approving this rule, the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NASD-2004-102) be, and it 
hereby is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).


[[Page 55486]]


---------------------------------------------------------------------------

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-2178 Filed 9-13-04; 8:45 am]
BILLING CODE 8010-01-P