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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-58435; File No. SR-NASDAQ-2008-070]
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 Regarding Fees and Credits for Members Using the Nasdaq Crossing Network
DOCUMENT SUMMARY: August 27, 2008.
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 August 15, 2008, 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. This rule proposal, which is effective upon filing with the [[Page 51671]]
Commission, shall become operative on September 1, 2008.
\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).
The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. SelfRegulatory Organization's Statement of the Terms of the [sic] Substance of the Proposed Rule Change
Nasdaq is adopting a fee and credit schedule for the Nasdaq Crossing Network.
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in brackets [sic].\5\
\5\ Changes are marked to the rule text that appears in the
electronic Nasdaq Manual found at http://nasdaq.complinet.com. 7018. Nasdaq Market Center Order Execution and Routing
(a)(e) No change.
(f) Crossing Network
All orders executed in the Nasdaq Crossing
Network No charge for execution
Credit for eligible executions through the $0.0010 per share Crossing Network from September 1, 2008
through September 30, 2008.
For the purposes of this subsection ``eligible executions'' are all
executions of trades through the Nasdaq Crossing Network other than
those executions that have the same market participant on both sides of the trade.
(f)(h) Current subsections (f) through (h) will be renumbered as (g) through (i) without other modification.
* * * * *
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 is adopting a fee and credit schedule for the Nasdaq
Crossing Network. The Commission approved the Nasdaq Crossing Network
on July 5, 2006.\6\ The Nasdaq Crossing Network provides an execution
option to market participants trading in Nasdaq and other exchange
listed securities that facilitates the execution of block trades
quickly and anonymously, while minimizing market impact and associated
price movements. The Nasdaq Crossing Network consists of a series of
trading day (``Intraday'') and after hours (``PostClose'') Reference Price Crosses.
\6\ See Securities Exchange Act Release No. 54248 (July 31,
2006) (SRNASDAQ2006019). Prior to the effective date of Nasdaq's
operation as an exchange for Nasdaqlisted securities, the rule
governing the Nasdaq Crossing Network had been approved as an NASD
rule (NASD Rule 4716). Securities Exchange Act Release No. 54101
(July 5, 2006), 71 FR 39382 (July 12, 2006) (SRNASD2005140).
Since Nasdaq launched the Crossing Network, Nasdaq has not charged a fee to members for executing orders through the Intraday or Post Close Crosses. Under the rule change, although there will continue to be no fee associated with trading through the Crossing Network, member firms will be eligible for a credit of $0.0010 per share for orders executed through the Crossing Network during the month of September. The credit will not be subject to volume or use requirements. Trades that involve the same market participant on both sides of the transaction, however, will not be eligible for the credit.
After the expiration of the promotional pricing on September 30, 2008, order executions through the Crossing Network will continue to be offered to members at no charge.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ 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. The promotional pricing for the
Crossing Network is an equitable allocation of fees because the credit
will apply equally to all members who execute orders through the
Crossing Network. Furthermore, the credit is reasonable because it is
intended to encourage participation in the Crossing Network, which
would provide additional data to Nasdaq to evaluate the need for any
future changes to the product or the relevant fee schedule. \7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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, as amended.
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 \9\ and subparagraph (f)(2) of Rule 19b4 thereunder.\10\
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b4(f)(2).
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.
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
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 100 F Street, NE., Washington, DC 20549 on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the selfregulatory organization. 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 SRNASDAQ2008070, and should be submitted on or before September 25, 2008.
\11\ 17 CFR 200.303(a)(12).
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E820516 Filed 9308; 8:45 am]
BILLING CODE 801001P
SUMMARY: NASDAQ Stock Market LLC,
DOCUMENT BODY 2: August 27, 2008.
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 August 15, 2008, 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. This rule proposal, which is effective upon filing with the [[Page 51671]]
Commission, shall become operative on September 1, 2008.
\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).
The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. SelfRegulatory Organization's Statement of the Terms of the [sic] Substance of the Proposed Rule Change
Nasdaq is adopting a fee and credit schedule for the Nasdaq Crossing Network.
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in brackets [sic].\5\
\5\ Changes are marked to the rule text that appears in the
electronic Nasdaq Manual found at http://nasdaq.complinet.com. 7018. Nasdaq Market Center Order Execution and Routing
(a)(e) No change.
(f) Crossing Network
All orders executed in the Nasdaq Crossing
Network No charge for execution
Credit for eligible executions through the $0.0010 per share Crossing Network from September 1, 2008
through September 30, 2008.
For the purposes of this subsection ``eligible executions'' are all
executions of trades through the Nasdaq Crossing Network other than
those executions that have the same market participant on both sides of the trade.
(f)(h) Current subsections (f) through (h) will be renumbered as (g) through (i) without other modification.
* * * * *
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 is adopting a fee and credit schedule for the Nasdaq
Crossing Network. The Commission approved the Nasdaq Crossing Network
on July 5, 2006.\6\ The Nasdaq Crossing Network provides an execution
option to market participants trading in Nasdaq and other exchange
listed securities that facilitates the execution of block trades
quickly and anonymously, while minimizing market impact and associated
price movements. The Nasdaq Crossing Network consists of a series of
trading day (``Intraday'') and after hours (``PostClose'') Reference Price Crosses.
\6\ See Securities Exchange Act Release No. 54248 (July 31,
2006) (SRNASDAQ2006019). Prior to the effective date of Nasdaq's
operation as an exchange for Nasdaqlisted securities, the rule
governing the Nasdaq Crossing Network had been approved as an NASD
rule (NASD Rule 4716). Securities Exchange Act Release No. 54101
(July 5, 2006), 71 FR 39382 (July 12, 2006) (SRNASD2005140).
Since Nasdaq launched the Crossing Network, Nasdaq has not charged a fee to members for executing orders through the Intraday or Post Close Crosses. Under the rule change, although there will continue to be no fee associated with trading through the Crossing Network, member firms will be eligible for a credit of $0.0010 per share for orders executed through the Crossing Network during the month of September. The credit will not be subject to volume or use requirements. Trades that involve the same market participant on both sides of the transaction, however, will not be eligible for the credit.
After the expiration of the promotional pricing on September 30, 2008, order executions through the Crossing Network will continue to be offered to members at no charge.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ 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. The promotional pricing for the
Crossing Network is an equitable allocation of fees because the credit
will apply equally to all members who execute orders through the
Crossing Network. Furthermore, the credit is reasonable because it is
intended to encourage participation in the Crossing Network, which
would provide additional data to Nasdaq to evaluate the need for any
future changes to the product or the relevant fee schedule. \7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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, as amended.
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 \9\ and subparagraph (f)(2) of Rule 19b4 thereunder.\10\
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b4(f)(2).
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.
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
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 100 F Street, NE., Washington, DC 20549 on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the selfregulatory organization. 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 SRNASDAQ2008070, and should be submitted on or before September 25, 2008.
\11\ 17 CFR 200.303(a)(12).
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E820516 Filed 9308; 8:45 am]
BILLING CODE 801001P
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14 CFR Part 39 40 CFR Part 52 14 CFR Part 71 33 CFR Part 165 50 CFR Part 679 47 CFR Part 73 26 CFR Part 1 40 CFR Part 180 33 CFR Part 117 50 CFR Part 17 44 CFR Part 67 50 CFR Part 648 14 CFR Part 97 40 CFR Part 63 33 CFR Part 100 50 CFR Part 622 50 CFR Part 660 44 CFR Part 65 26 CFR Part 301 39 CFR Part 111 40 CFR Part 300 6 CFR Part 5 40 CFR Part 271 47 CFR Part 64 40 CFR Parts 52 and 81 50 CFR Part 665 10 CFR Part 50 44 CFR Part 64 49 CFR Part 571 39 CFR Part 3020