[Federal Register Volume 60, Number 207 (Thursday, October 26, 1995)]
[Notices]
[Pages 54897-54898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26545]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36397; File No. SR-NASD-95-48]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by National Association of Securities Dealers, Inc. Relating to
Non-Member Subscriber Deposits for Nasdaq Level 2/3 Service and
Equipment
October 20, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on October
11, 1995, the National Association of Securities Dealers, Inc.
(``NASD'' or ``Association'') filed with the Securities and Exchange
Commission (``SEC'' or ``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.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act, the
NASD is proposing to revise the subscriber deposit requirements
contained in Part VIII, Paragraph G.1. and 2. of Schedule D to the NASD
By-Laws. The text of the proposed rule change is as follows. (Additions
are italicized; deletions are bracketed.)
Schedule D
Part VIII
Schedule of NASD Charges for Services and Equipment
G. Subscriber Deposits
New and existing subscribers to Level 2/3 or Nasdaq
WorkstationTM servicer shall be subject to the following
deposit charges per unit:
1. New subscriber
a. estimated telecommunications provider [installation] charges
[including cable, freight and telephone company charges;] for
network infrastructure, connection and testing;
b. two (2) months circuit [service and equipment] charges; and
c. estimated telecommunications provider disconnect charges
[including Harris disconnect and freight charges].
2. Existing subscribers subject to subscriber deposits include those
that have been placed on the termination list two or more times
within a two year period; those that have paid for services with one
or more NSF checks; and those that have had service disconnected for
non-payment but have not had equipment removed:
a. two (2) circuit [service and equipment] charges; and
b. estimated telecommunciations provider disconnect charges
[including Harris disconnect and freight charges].
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 NADS 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. The NASD has prepared 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
The proposed rule change reflects increased charges for the
provision of
[[Page 54898]]
telecommunications services underlying Nasdaq Workstation II service,
and clarifies the various component functions encompassed within the
circuit installation fee so that the true nature of the charge is made
clear to new subscribers. These requirements would pertain only to new
subscribers or existing subscribers that have defaulted on the payment
of their charges.
Note that the instant filing applies only to non-member
subscribers. A companion filing, which applies the proposed rule change
to member subscribers, is being filed separately for immediate
effectiveness.
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(5) of the Act, which requires that the
rule of the Association provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system while the association
operates or controls.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The NASD 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) Self-Regulatory 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer 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 such 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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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 the file number in the caption
above and should be submitted by November 16, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-26545 Filed 10-25-95; 8:45 am]
BILLING CODE 8010-01-M
