[Federal Register Volume 63, Number 15 (Friday, January 23, 1998)]
[Notices]
[Pages 3595-3596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1645]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39555; File No. SR-NASD-97-98]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc. Relating to SelectNet Fees
January 15, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 31, 1997, the
National Association of Securities Dealers, Inc. (``NASD'' or
``Association'') through its wholly owned subsidiary, the Nasdaq Stock
Market, Inc. (``Nasdaq'') filed with the Securities and Exchange
Commission (``Commission'' or ``SEC'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the NASD. 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).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Pursuant to Rule 19b-4 under the Act Nasdaq is herewith filing a
proposed extension of the temporary 50% fee reduction currently charged
under NASD Rule 7010(1) for the execution of a transaction in
SelectNet.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the NASD included statements
concerning the purpose of and basis for the proposed rule change.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Nasdaq is proposing to extend the temporary 50% fee abatement
currently charged under NASD Rule 7010(1) for the execution of a
transaction in SelectNet. This proposed extension continues the current
SelectNet fee reduction from $2.50 per side to $1.25 per side and is
effective January 1, 1998, through March 31, 1998. The proposed
extension constitutes only a temporary abatement in the fee Nasdaq
collects and, if no further action is taken, SelectNet fees will revert
to the $2.50 per side level on April, 1998.
The reasons justifying a SelectNet fee reduction are contained in
Nasdaq's original rule filing in October of 1997 seeking a 50%
abatement for the period of October 1, 1997, through December 31,
1997.\2\ SelectNet usage has continued to grow with more than 107,000
transactions in October of 1997 and over 79,000 transactions in
November of 1997. Nasdaq believes that while the level of SelectNet
activity supports a continuation of lower SelectNet fees, the
volatility of current SelectNet usage levels militates in favor of the
maintenance of the fee reduction on a temporary basis.
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\2\ See Securities Exchange Act Release No. 39248 (October 16,
1997), 62 FR 55296 (October 23, 1997).
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Nasdaq believes that the proposed extension of the fee reduction is
consistent with Section 15A(b)(5) of the Act, which requires that the
rules of the NASD provide for the equitable allocation of reasonable
dues, fees and other changes among members and issuers and other
persons using any facility or system which the NASD operates or
controls.
B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD believes that the proposed rule change will not result in
any burden on competition that is 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
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
This filing applies to the assessment of SelectNet fees to NASD
members, and thus the proposed rule change is effective immediately
upon filing pursuant to Section 19(b)(3)(A)(ii) \3\ of the Act and
subparagraph (e)(2) of Rule 19b-4 under the Act \4\ because the
proposal is establishing or changing a due, fee or other charge.
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\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(e)(2).
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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.
[[Page 3596]]
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
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. Copies of such filing will also be
available for inspection and copying at the principal office of the
NASD. All submissions should refer to File No. SR-NASD-97-98 and should
be submitted by February 13, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-1645 Filed 1-22-98; 8:45 am]
BILLING CODE 8010-01-M
