[Federal Register Volume 63, Number 202 (Tuesday, October 20, 1998)]
[Notices]
[Pages 56055-56056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28109]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40546; File No. SR-NASD-98-73]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the National Association of Securities Dealers, Inc. Relating
to Fees for Subscribers Who Receive Nasdaq Level 1 and Last Sale Data
Through Automated Voice Response Services
October 13, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 1, 1998, the National Association of Securities Dealers,
Inc. (``NASD''), through its wholly-owned subsidiary, the Nasdaq Stock
Market, Inc. (``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 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).
\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 is proposing to amend Rule 7010 of the NASD to make
permanent its current monthly pilot fee for subscribers who receive
Nasdaq Level 1 and Last Sale data through automated voice response
services. Below is the text of the proposed rule change. Proposed new
language is in italics.
* * * * *
(p) Automated Voice Response Service Fee
The monthly charge to be paid by the subscriber for access to
Nasdaq Level 1 Service and Last Sale Information Service through
automated voice response services shall be $21.25 for each voice port.
* * * * *
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 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
[[Page 56056]]
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
Nasdaq is proposing to make permanent its $21.25 monthly per port
fee for subscribers who receive Nasdaq Level 1 service through
automated voice response services.\3\ These services provide callers
with automated voice access to real-time Nasdaq pricing information.
The monthly $21.25 fee has been in effect as a pilot fee for over 11
years and was originally based on a formulation of a $5.00 premium
above the combined $16.25 Level 1/Last Sale rate in effect at that
time. This fee has not increased despite a subsequent increase of Level
1/Last Sale rates to the current $20.00 per month level. Given the
continued usage of voice-based quote access services,\4\ Nasdaq
believes that the charge for such services should not be made a
permanent part of its fee structure.
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\3\ A vendor's voice port count is defined as the maximum number
of callers capable of accessing Nasdaq data at any given time. For
example, if a vendor's voice port count is 100 (i.e., capable of
handling a maximum of 100 callers at any given time) then the fee
accessed would be $2,125 ($21.25 x 100). Conference call on
October 6, 1998, between Thomas P. Moran, Senior Attorney, Office of
General Counsel, Nasdaq, and Mignon McLemore, Attorney and Robert B.
Long, Division of Market Regulation, Commission.
\4\ There are currently 7,629 voice ports in service.
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Nasdaq believes that the proposed rule change is consistent with
the provisions of Sections 15A(b)(5) \5\ and 15A(b)(6) \6\ of the Act
in that the proposal is designed to provide for the equitable
allocation of reasonable fees among members and other persons using any
facility or system which the Association operates or controls and is
not designed to permit unfair discrimination between customers, issues,
brokers or dealers.
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\5\ 15 U.S.C. 78o-3(b)(5).
\5\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will impose
any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 days of the publication of this notice in the Federal
Register or within such long period (i) as the Commission may designate
up to 90 days of such date if it finds such long 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 the 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 proposal is
consistent with the Act. 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 at 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-98-73 and should be
submitted by November 10, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-28109 Filed 10-19-98; 8:45 am]
BILLING CODE 8010-01-M
