[Federal Register Volume 60, Number 207 (Thursday, October 26, 1995)]
[Notices]
[Pages 54896-54897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26546]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36396; File No. SR-NASD-95-47]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc. Relating to 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 NASD has designated this proposal as establishing or
changing a due, fee, or other charge under Section 19(b)(3)(A) of the
Act, which renders the rule effective upon the Commission's receipt of
this filing. 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
Workstation TM service shall be subject to the following
deposit charges per unit:
1. New subscriber
a. estimated telecommunciations provider [installation] charges
[including cable, freight and telephone company charge;] for network
infrastructure, connection and testing;
b. two (2) months circuit [service and equipment] charges; and
c. estimated telecommunciations 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) months 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 NASD 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
[[Page 54897]]
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 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 proposed rule change has become effective immediately
upon filing with respect to NASD members as indicated in Section III
below. A companion filing, which applies the proposed rule change to
non-member subscribers, is being filed separately pursuant to Section
19(b)(2) of the Act.
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
rules 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 which the association
operates or controls.
(B) Self-Regulatory Organization's Statement of 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
With respect to NASD members, the foregoing rule change has become
effective immediately pursuant to Section 19(b)(3)(A) of the Act and
subparagraph (e) of Rule 19b-4 thereunder because it establishes or
changes a due, fee or other charge imposed by the NASD. At any time
within 60 days of the filing of such rule change, the Commission may
summarily abrogate the 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. 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. 95-26546 Filed 10-25-95; 8:45 am]
BILLING CODE 8010-01-M
