[Federal Register Volume 70, Number 120 (Thursday, June 23, 2005)]
[Notices]
[Page 36426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3263]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51862; File No. SR-NASD-2005-039]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change to Incorporate the 
Brut System Book Feed Into the TotalView Entitlement

June 16, 2005.
    On March 30, 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''), 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 incorporate Brut's System Book Feed into the 
TotalView entitlement. The proposed rule change was published for 
comment in the Federal Register on May 17, 2005.\3\ The Commission 
received no comments on the proposal.
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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. 51683 (May 11, 
2005), 70 FR 28345 (``Notice'').
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    After careful review, 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 self-regulatory organization.\4\ 
In particular, the Commission believes that the proposed rule change is 
consistent with Section 15A(b)(5) of the Act,\5\ which requires, among 
other things, that the rules of the 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 the association operates or controls.
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    \4\ The Commission has considered the proposed rule's impact on 
efficiency, competition and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-3(b)(5).
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    Nasdaq has proposed to modify NASD Rule 7010(q)(1) to incorporate 
Brut's System Book Feed within Nasdaq's TotalView entitlement. Nasdaq's 
TotalView data feed provides information regarding all quotes and 
orders in the Nasdaq Market Center (including, but not limited, to Brut 
orders), while the Brut System Book Feed, contains the same information 
with respect to orders in Brut. In the Notice, Nasdaq stated that it 
would make this proposal effective on July 1, 2005.
    The Commission believes that the inclusion of the Brut System Book 
Feed into Nasdaq's TotalView entitlement for fee purposes should enable 
Nasdaq to equitably charge for Brut depth of book information, 
regardless of the source from which it is received. In approving the 
proposed rule change, the Commission notes that Nasdaq has stated that 
TotalView subscribers may obtain the Brut System Book Feed upon request 
of Nasdaq. In addition, the Commission notes that Nasdaq has stated 
that, in order to ease the transition of market participants to a 
single platform, it intends to distribute Brut order information via 
both TotalView and the System Book Feed as long as Brut remains a 
separate Nasdaq facility.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-NASD-2005-039) be, 
and hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).
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    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. E5-3263 Filed 6-22-05; 8:45 am]
BILLING CODE 8010-01-P