[Federal Register Volume 72, Number 51 (Friday, March 16, 2007)]
[Notices]
[Pages 12648-12650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4814]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55444; File No. SR-NASDAQ-2007-006]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing of Proposed Rule Change To Establish Daily Share 
Volume Service and Fees for the Service

March 12, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 7, 2007, The NASDAQ Stock Market LLC (``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. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to establish fees to make Nasdaq Daily Share Volume

[[Page 12649]]

information available via a Web-based data product that will provide 
daily traded share volume by issue for participating market 
participants on a T+1 basis. The text of the proposed rule change is 
available at Nasdaq, http://www.nasdaq.com, and the Commission's Public 
Reference Room.\3\
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    \3\Changes are marked to the rule text that appears in the 
electronic NASDAQ Manual found at http://www.nasdaqtrader.com.
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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. 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 proposes to establish the Nasdaq Daily Share Volume Service 
(``Service'') and to establish fees for the Service, to make 
information available via a Web-based data product that will provide 
daily traded share volume by issue for participating market 
participants on a T+1 basis. Currently, Nasdaq provides a share volume 
product on a monthly basis called the NASDAQ Monthly Market Maker Share 
Volume Report. Nasdaq has received numerous requests for a comparable 
daily product based on trades executed by, or reported to, Nasdaq 
systems.
    Vendors and other exchanges also currently make daily broker volume 
reports available. Specifically, the New York Stock Exchange (``NYSE'') 
provides a daily NYSE Broker Volume Report based on trades reported to 
the NYSE. Access to the NYSE reports via the web costs $300/month. 
Access to the full dataset via FTP costs $3,000/month.
    In response to this demand, Nasdaq proposes to establish the 
Service. The Service will provide subscribers with the ability to view 
volume reports on a T+1 basis. One level of service (``web 
subscribers'') will enable users to access the product through a web 
service that will allow a single subscriber to construct a variety of 
custom queries and view and print the results. Another level of service 
(``FTP subscribers'') will have FTP access to the full underlying data 
set to create custom reports and enable redistribution, but a 
distributor agreement will also be required.
    The volume data will include trades from the Nasdaq Execution 
System and internalized prints from the Nasdaq/NASD Trade Report 
Facility. Nasdaq proposes to charge:
     Web subscribers $240/month for individual access to view 
and print the reports; or
     FTP subscribers $2,500/month for FTP access to the 
underlying data for redistribution.
    These prices fairly reflect the value of this data. The Service is 
responsive to the requests of market participants seeking an 
alternative to the NYSE product and other commercial products. However, 
Nasdaq believes that the Service is aggressively priced and that the 
prices of the Service are designed to respond to customer demand, while 
recognizing the challenge of establishing a new product in the 
marketplace.
    Nasdaq will provide eligible market participants with the 
opportunity to choose whether to advertise their trade volume by market 
participant ID code and issue. Participation by eligible market 
participants will be completely voluntary.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\4\ in general, and with Section 
6(b)(4) of the Act,\5\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members and issuers and other persons using any facility or system 
which Nasdaq operates or controls, and it does not unfairly 
discriminate between customers, issuers, brokers or dealers. Use of the 
Service is voluntary and the subscription fees will be imposed on all 
purchasers equally based on the level of service selected. The proposed 
fees will cover the costs associated with establishing the Service, 
responding to customer requests, configuring Nasdaq's systems, 
programming to user specifications, and administering the Service, 
among other things.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended.

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

    Written comments were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 No. SR-NASDAQ-2007-006 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NASDAQ-2007-006. 
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 communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the

[[Page 12650]]

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 such filing also will be available for 
inspection and copying at the principal office 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-NASDAQ-2007-
006 and should be submitted on or before April 6, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-4814 Filed 3-15-07; 8:45 am]
BILLING CODE 8010-01-P