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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57001; File No. SR-NASDAQ-2007-099]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY: Self-Regulatory Organizations; the NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Establishing Fee for Registering and Transferring Registration of Associated Persons
DOCUMENT SUMMARY: December 20, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on December 20, 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. Pursuant to Section 19(b)(3)(A)(ii)
of the Act \3\ and Rule 19b4(f)(2) thereunder,\4\ Nasdaq has
designated this proposal as establishing or changing a due, fee, or
other charge, which renders the proposed rule change effective upon
filing. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change
Nasdaq proposes to charge fees for individual registration and transfer/relicensing under Rule 7003(b). The proposed rule change is effective upon filing.
The text of the proposed rule change is below. Proposed new
language is underlined; proposed deletions are in brackets. * * * * *
(a) The following fees will be collected and retained by FINRA
[NASD] via the Web CRD registration system for the registration of
associated persons of Nasdaq members that are not also FINRA [NASD] members:
(1)(6) No change.
(b) The following fees will be collected via the Web CRD
registration system for the registration of associated persons of Nasdaq members:
(1) $55 for each initial Form U4 filed for the registration of a representative or principal.
(2) $55 for each registration U4 transfer or relicensing of a representative or principal.
* * * * *
II. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq proposes to revise Rule 7003 and begin charging fees for registration and transfer/relicensing of individuals. Currently, Nasdaq is one of only a few selfregulatory organizations (``SROs'') that charge membership application and renewal fees for firms, but does not charge fees for registered representatives.
Subsequent to the early 2006 transition of the Nasdaq Market Center
as a facility of the Financial Industry Regulatory Authority, Inc. (f/
k/a National Association of Securities Dealers, Inc.) to a facility of
a new SRO, Nasdaq decided to limit membership fees to firm application,
renewal, and trading rights charges. However, since then Nasdaq's
market share in trading New York Stock Exchange securities has
increased significantly and Nasdaq will also soon launch an options
exchange. Both of these events create additional regulation expense
that must be supported. Nasdaq believes that the new fees are warranted
to ensure that fees for registered representatives fund a portion of
the cost of regulating the Nasdaq market. Nasdaq believes that even
with the new fees, registered representatives that are Nasdaq members
will still generally pay less than or the same amount they pay to be registered representatives in other SROs.\5\
\5\ See, http://www.finra.org/web/groups/reg_systems/documents/regulatory_systems/p005213.pdf .
Nasdaq proposes to begin charging $55 for individual initial registration and transfer/relicensing on January 1, 2008.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(4) of the Act,\7\ 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. Nasdaq believes that the proposed
Nasdaq membership fees for individual registration and transfer/re
licensing are a reasonable and equitable method of ensuring that
registered representative fees funds a portion of the cost of
regulating the Nasdaq market, and that the overall cost for registered
representatives that are Nasdaq members is reasonable as compared with their cost of membership in other SROs.
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
[[Page 74386]]
B. SelfRegulatory 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.
C. SelfRegulatory 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b4
thereunder.\9\ At any time within 60 days of the filing of the 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.
\8\ 15 U.S.C. 78s(b)(3)(a)(ii).
\9\ 17 CFR 240.19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRNASDAQ2007099. This file number should be included on the subject line if email 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 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 on official business days between the hours of 10 a.m. and 3 p.m. Copies of the 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 SRNASDAQ2007099 and should be submitted on or before January 22, 2008.
\10\ 17 CFR 200.303(a)(12).
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E725354 Filed 122807; 8:45 am]
BILLING CODE 801101P
SUMMARY: NASDAQ Stock Market LLC,
DOCUMENT BODY 2: December 20, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on December 20, 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. Pursuant to Section 19(b)(3)(A)(ii)
of the Act \3\ and Rule 19b4(f)(2) thereunder,\4\ Nasdaq has
designated this proposal as establishing or changing a due, fee, or
other charge, which renders the proposed rule change effective upon
filing. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change
Nasdaq proposes to charge fees for individual registration and transfer/relicensing under Rule 7003(b). The proposed rule change is effective upon filing.
The text of the proposed rule change is below. Proposed new
language is underlined; proposed deletions are in brackets. * * * * *
(a) The following fees will be collected and retained by FINRA
[NASD] via the Web CRD registration system for the registration of
associated persons of Nasdaq members that are not also FINRA [NASD] members:
(1)(6) No change.
(b) The following fees will be collected via the Web CRD
registration system for the registration of associated persons of Nasdaq members:
(1) $55 for each initial Form U4 filed for the registration of a representative or principal.
(2) $55 for each registration U4 transfer or relicensing of a representative or principal.
* * * * *
II. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq proposes to revise Rule 7003 and begin charging fees for registration and transfer/relicensing of individuals. Currently, Nasdaq is one of only a few selfregulatory organizations (``SROs'') that charge membership application and renewal fees for firms, but does not charge fees for registered representatives.
Subsequent to the early 2006 transition of the Nasdaq Market Center
as a facility of the Financial Industry Regulatory Authority, Inc. (f/
k/a National Association of Securities Dealers, Inc.) to a facility of
a new SRO, Nasdaq decided to limit membership fees to firm application,
renewal, and trading rights charges. However, since then Nasdaq's
market share in trading New York Stock Exchange securities has
increased significantly and Nasdaq will also soon launch an options
exchange. Both of these events create additional regulation expense
that must be supported. Nasdaq believes that the new fees are warranted
to ensure that fees for registered representatives fund a portion of
the cost of regulating the Nasdaq market. Nasdaq believes that even
with the new fees, registered representatives that are Nasdaq members
will still generally pay less than or the same amount they pay to be registered representatives in other SROs.\5\
\5\ See, http://www.finra.org/web/groups/reg_systems/documents/regulatory_systems/p005213.pdf .
Nasdaq proposes to begin charging $55 for individual initial registration and transfer/relicensing on January 1, 2008.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(4) of the Act,\7\ 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. Nasdaq believes that the proposed
Nasdaq membership fees for individual registration and transfer/re
licensing are a reasonable and equitable method of ensuring that
registered representative fees funds a portion of the cost of
regulating the Nasdaq market, and that the overall cost for registered
representatives that are Nasdaq members is reasonable as compared with their cost of membership in other SROs.
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
[[Page 74386]]
B. SelfRegulatory 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.
C. SelfRegulatory 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b4
thereunder.\9\ At any time within 60 days of the filing of the 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.
\8\ 15 U.S.C. 78s(b)(3)(a)(ii).
\9\ 17 CFR 240.19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRNASDAQ2007099. This file number should be included on the subject line if email 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 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 on official business days between the hours of 10 a.m. and 3 p.m. Copies of the 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 SRNASDAQ2007099 and should be submitted on or before January 22, 2008.
\10\ 17 CFR 200.303(a)(12).
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E725354 Filed 122807; 8:45 am]
BILLING CODE 801101P
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