Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the National Association of Securities Dealers, Inc., Relating to Limited Usage Service Fees

[Federal Register Volume 64, Number 103 (Friday, May 28, 1999)]
[Notices]
[Pages 29075-29076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13582]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41432; File No. SR-NASD-99-22]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the National Association of Securities Dealers, Inc., 
Relating to Limited Usage Service Fees

May 20, 1999.
    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 April 28, 1999, the National Association of Securities Dealers, Inc. 
(``NASD'' or ``Association''), through its wholly owned subsidiary, the 
Nasdaq Stock Market, Inc. (``Nasdaq''), filed a proposed rule change 
with the Securities and Exchange Commission (``SEC'' or 
``Commission''). The proposed rule change is described in Items I, II, 
and III below, which Items have been prepared by Nasdaq. The Commission 
is publishing this notice to solicit comments on the proposed rule 
changes 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 NASD Rule 7010 to eliminate its 
Limited Usage Service Fee.\3\ Below is the text of the proposed rule 
change. Proposed deletions are in brackets.
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    \3\ Although listed in the proposal as section ``(f) Limited 
Usage Service,'' Nasdaq clarified that it is section (e). Per 
conversation between Thomas Moran, Assistant General Counsel, 
Nasdaq, and Heather Traeger, Attorney, Market Regulation, SEC on 
April 29, 1999.
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    [(e) Limited Usage Service
    The charges to be paid by a profession subscriber for access to 
Nasdaq Level I Service and the Last Sale Information Service through an 
authorized portable quotation device capable of receiving quotations 
for not more than 250 securities in a time shall be $6.00 per month per 
device.]
* * * * *

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 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

1. Purpose
    Nasdaq is proposing to eliminate its Limited Usage Service fee.\4\ 
Currently, professional market participants may obtain, through an 
approved portable quotation device, Nasdaq Level I and Last Sale 
Information on up to 250 Nasdaq securities for a monthly fee of $6.00. 
The fee currently has only approximately 95 subscribers and has never 
exceeded 200 users during its existence. In light of this low 
participant usage and the burdens associated with administering the 
Limited Usage Service, Nasdaq has determined to discontinue this 
service and its related fee. Nasdaq notes that the information provided 
through the Limited Usage Service will still be widely available to 
professionals through numerous other mediums and vendors.
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    \4\ This fee was established on a pilot basis on January 3, 
1984. See Securities Exchange Act Release No. 20522 (January 3, 
1984), 49 FR 1440 (January 11, 1984).
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
Sections

[[Page 29076]]

15A(b)(5) \5\ and (6) \6\ of the Act in that the proposed rule change 
is designed to provide for the equitable allocation of reasonable fees 
among those using its facilities or systems and is not designed to 
permit unfair discrimination between customers, issuers, brokers or 
dealers.
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    \5\ 15 U.S.C. 78o-3(b)(5).
    \6\ 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 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

    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, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 
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-99-22, June 18, 
1999.

    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. 99-13582 Filed 5-27-99; 8:45 am]
BILLING CODE 8010-01-M