[Federal Register Volume 70, Number 48 (Monday, March 14, 2005)]
[Notices]
[Pages 12523-12525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1058]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51323; File No. SR-NASD-2005-028]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to the Discontinuation of the Nasdaq PostData 
Pilot Program

March 4, 2005.
    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 February 17, 2005, 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. Nasdaq has 
filed the proposal as a ``non-controversial'' rule change pursuant to 
section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ 
which renders the proposal effective upon filing with the 
Commission.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ Nasdaq asked the Commission to waive the five-day pre-filing 
notice requirement. See Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-
4(f)(6)(iii). The Commission granted Nasdaq's request.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq is filing the proposed rule change to terminate the PostData 
pilot program, as of March 31, 2005, the date that its current pilot 
approval expires. The text of the proposed rule change is below. 
Proposed new language is in

[[Page 12524]]

italics; proposed deletions are in brackets.\6\
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    \6\ The proposed rule change is marked to show changes from the 
rule text appearing in the NASD Manual available at http://www.nasd.com.
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7010. System Services

    (a)-(r) No change.
    (s) Reserved [NasdaqTrader.com Volume and Issue Data Package Fee
    The charge to be paid by the subscriber for each entitled user 
receiving the Nasdaq Volume and Issue Data Package via NasdaqTrader.com 
shall be $70 per month. The charge to be paid by market data 
distributors for this information shall be $35 per month for each end 
user receiving the information through the data vendor. The 
availability of this service through NasdaqTrader.com shall be limited 
to NASD members, Qualified Institutional Buyers (as defined in Rule 
144A of the Securities Act of 1933) and data vendors. The Volume and 
Issue Data package includes:
    (1) Daily Share Volume Reports
    (2) Daily Issue Data
    (3) Monthly Volume Summaries
    (4) Buy Volume Report
    (5) Sell Volume Report
    (6) Crossed Volume Report
    (7) Consolidated Activity Volume Report
    All fees assessed under this subsection will be waived for a period 
of up to two months for all new subscribers and potential new 
subscribers. This fee waiver period would be applied on a rolling 
basis, determined by the date on which a new subscriber or potential 
subscriber contacts Nasdaq to receive access to PostData.]
    (t)-(v) No change.
* * * * *

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
    Nasdaq is proposing to terminate the PostData pilot program, as of 
March 31, 2005, the date that its current pilot approval expires, 
because Nasdaq would like to reassess the demand for and the 
composition of data in this product. On January 11, 2002, the 
Commission first approved Nasdaq PostData, a voluntary trading data 
distribution facility, accessible to NASD members, buy-side 
institutions and market data vendors through the NasdaqTrader.com Web 
site.\7\ Nasdaq periodically expanded the content of Nasdaq PostData 
and extended this pilot on a number of occasions, most recently through 
March 31, 2005.\8\
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    \7\ See Securities Exchange Act Release No. 45270 (Jan. 11, 
2002), 67 FR 2712 (Jan. 18, 2002) (SR-NASD-99-12).
    \8\ See Securities Exchange Act Release Nos. 49376 (Mar. 9, 
2004), 69 FR 12188 (Mar. 15, 2004) (SR-NASD-2004-038) (extending 
pilot through March 31, 2005); 48576 (Sept. 30, 2003), 68 FR 57946 
(Oct. 7, 2003) (SR-NASD-2003-142) (extending pilot through March 
2004); 47634 (April 4, 2003), 68 FR 17714 (April 10, 2003) (SR-NASD-
2003-60) (extending pilot through September 2003); 47503 (March 14, 
2003), 68 FR 13745 (March 20, 2003) (SR-NASD-2003-35) (extending 
pilot through March 2003); and 47210 (Jan. 17, 2003), 68 FR 3912 
(Jan. 27, 2003) (SR-NASD-2003-02) (extending pilot through February 
2003).
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
section 15A(b)(5) \9\ and section 15A(b)(6) \10\ of the Act. Section 
15A(b)(5) requires the equitable allocation of reasonable fees and 
charges among members and other users of facilities operated or 
controlled by a national securities association. Nasdaq believes that 
it is not possible to offer Nasdaq PostData at a reasonable fee that 
equitably allocates fees and charges among its members and users.
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    \9\ 15 U.S.C. 78o-3(b)(5).
    \10\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Nasdaq has neither solicited nor received comments on the proposed 
rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change: (1) Does not significantly 
affect the protection of investors or the public interest; (2) does not 
impose any significant burden on competition; and (3) does not become 
operative for 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest, the proposed rule 
change has become effective pursuant to section 19(b)(3)(A) of the Act 
\11\ and Rule 19b-4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

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-2005-028 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-2005-028. 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

[[Page 12525]]

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 Room. Copies of the filing also will be available for 
inspection and copying at the principal offices of 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-2005-028 and should be 
submitted on or before April 4, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1058 Filed 3-11-05; 8:45 am]
BILLING CODE 8010-01-P