[Federal Register Volume 69, Number 204 (Friday, October 22, 2004)]
[Notices]
[Pages 62104-62105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2800]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50545; File No. SR-NASD-2004-114]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change, as Amended, 
Relating to Fees for Depth of Book Data in Exchange-Listed Securities 
in the Nasdaq Market Center

October 14, 2004.
    On July 26, 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 establish a monthly per-controlled device fee 
for depth of book information for exchange-listed securities in the 
Nasdaq Market Center. On August 24, 2004, Nasdaq filed Amendment No. 1 
to the proposed rule change.\3\ The proposed rule change, as amended, 
was published for comment in the Federal Register on September 9, 
2004.\4\ The Commission received no comment letters on the proposal, as 
amended. On October 6, 2004,\5\ Nasdaq submitted Amendment No. 2 to the 
proposed rule change. This order approves the proposed rule change, as 
amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Letter from Mary M. Dunbar, Vice President and Deputy 
General Counsel, Nasdaq, to Katherine A. England, Assistant 
Director, Division of Market Regulation (``Division''), Commission, 
dated August 23, 2004 (``Amendment No. 1''). Amendment No. 1 
replaced the original proposed rule change in its entirety.
    \4\ See Securities Exchange Act Release No. 50304 (September 1, 
2004), 69 FR 54714.
    \5\ See letter from Edward S. Knight, Executive Vice President, 
Nasdaq, to Katherine A. England, Assistant Director, Division, 
Commission, dated October 6, 2004 (``Amendment No. 2''). Amendment 
No. 2 made a minor technical change to the proposed rule text, as 
such, it is not subject to notice and comment.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
association.\6\ In particular, the Commission believes that the 
proposal is consistent with Section 15A(b)(5) of the Act,\7\ which 
requires, among other things, that the rules of an 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 an association operates or controls.
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    \6\ In approving this proposed rule change, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78o-3(b)(5).
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    Specifically, the Commission believes that Nasdaq's dissemination 
of multiple levels of firm quotes/orders in exchange-listed securities 
should increase the market information available to market 
participants. The Commission believes the proposed fee is reasonable in 
that Nasdaq represents that the $6 monthly fee is based on anticipated 
message traffic through its new data feed, OpenView, in relation to the 
message traffic amounts and prices

[[Page 62105]]

for similar data services currently in operation on Nasdaq.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\8\ the proposed rule change (SR-NASD-2004-114), as amended, is 
approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E4-2800 Filed 10-21-04; 8:45 am]
BILLING CODE 8010-01-P