[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Pages 61705-61706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24909]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46549; File No. SR-NASD-2002-101]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Granting Approval to a Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto Increasing Fees for the Mutual Fund
Quotation Service and Adopting a New Fee To Process a Request To Amend
the Name and/or Symbol of a Fund
September 25, 2002.
On July 30, 2002, the National Association of Securities Dealers,
Inc. (``NASD'' or ``Association''), 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 amend NASD Rule 7090 to
increase fees associated with the Mutual Fund Quotation Service
(``MFQS'' or the ``Service'') and to adopt a new administrative fee to
process a request to amend the name and/or symbol of a fund. Nasdaq
filed Amendment No. 1 to
[[Page 61706]]
the proposal with the Commission on August 5, 2002.\3\ Nasdaq filed
Amendment No. 2 to the proposal with the Commission on August 15,
2002.\4\ The proposed rule change, as amended, was published for
comment in the Federal Register on August 22, 2002.\5\ The Commission
received no comment letters on the proposal. This order approves the
proposed rule change, as amended.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See letter from John M. Yetter, Assistant General Counsel,
Nasdaq, to Katherine A. England, Assistant Director, Division of
Market Regulation (``Division''), Commission, dated August 5, 2002
(``Amendment No. 1'').
\4\ See letter from John M. Yetter, Assistant General Counsel,
Nasdaq, to Katherine A. England, Assistant Director, Division,
Commission, dated August 14, 2002 (``Amendment No. 2'').
\5\ See Securities Exchange Act Release No. 46373 (August 16,
2002), 67 FR 54519.
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The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities association
\6\ and, in particular, the requirements of section 15A of the Act \7\
and the rules and regulations thereunder. The Commission finds
specifically that the proposed rule change is consistent with section
15A(b)(5) of the Act,\8\ which requires that the rules of the NASD
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 NASD operates or controls. Nasdaq has represented
that the fee changes are necessary to ensure that the fees for MFQS
continue to cover the costs of its operation and that the fees will be
imposed directly on funds that benefit from the operation of the
System. Specifically, Nasdaq stated that the proposed fee increase for
a logon identification to MFQS is necessary to reflect the costs of
recent upgrades to its security software and hardware to keep pace with
Internet security threats. Secondly, Nasdaq represented that the
increase in the application processing fee reflects costs associated
with upgrading the system's application processing methods, as well as
general increases in personnel costs. Lastly, Nasdaq represented that
the fee for processing requests to change the name and/or symbol of a
fund that is currently listed on MFQS is to compensate for the
personnel and system costs associated with making these changes.
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\6\ In approving this proposed rule change, the Commission notes
that it has considered its impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78o-3.
\8\ 15 U.S.C. 78o-3(b)(5).
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It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\9\ that the proposed rule change and Amendment Nos. 1 and 2
thereto (File No. SR-NASD-2002-101) \10\ are approved.
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\9\ 15 U.S.C. 78s(b)(2).
\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-24909 Filed 9-30-02; 8:45 am]
BILLING CODE 8010-01-P
