[Federal Register Volume 69, Number 159 (Friday, October 8, 2004)]
[Notices]
[Pages 60448-60449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2535]


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SECURITIES AND EXCHANGE COMMISSION

[Release No.34-50483; File No. SR-NASD-2004-118]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by National Association of Securities Dealers, 
Inc. To Introduce an Extranet Access Fee for Extranet Providers To 
Provide Direct Access Services for Nasdaq Market Data Feeds

October 1, 2004.

I. Introduction

    On August 4, 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 introduce an access fee to be charged to 
extranet providers to furnish direct access services for Nasdaq market 
data feeds. The proposed rule change was published for notice and 
comment in the Federal Register on September 1, 2004.\3\ The Commission 
received two comment letters on the proposed rule change, both 
supporting the proposal.\4\
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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. 50262 (August 25, 
2004), 69 FR 53480.
    \4\ See letter from Scott Feier, Vice President, Fidelity 
Investments, to Jonathan G. Katz, Secretary, Commission, dated 
September 1, 2004; and letter from P. Howard Edelstein, President 
and CEO, Radianz Americas Inc., to Jonathan G. Katz, Secretary, 
Commission, dated September 22, 2004.

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[[Page 60449]]

    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,\5\ and, in 
particular, the requirements of Section 15A(b)(5) of the Act.\6\ The 
Commission believes that the proposed rule change will result in the 
equitable allocation of a reasonable fee among extranet service 
providers furnishing direct access services for Nasdaq market data 
feeds. The Commission notes that Nasdaq plans to use the proposed fee 
to support Nasdaq's costs associated with establishing and maintaining 
multiple extranet connections, the costs for republishing, increased 
network monitoring and maintenance costs, and new administrative and 
operational costs.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-NASD-2004-118) be, and hereby is, 
approved.
    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E4-2535 Filed 10-7-04; 8:45 am]
BILLING CODE 8010-01-P