67 FR 240 pgs. 76770-76771 - Self-Regulatory Organizations;Order Approving Proposed Rule Change by the National Association of Securities Dealers, Inc. To Modify Application of Additional Circuit/SDP Charge Under Rule 7010(f) to Non-NASD Members
Type: NOTICEVolume: 67Number: 240Pages: 76770 - 76771
Docket number: [Release No. 34-46951; File No. SR-NASD-2002-121]
FR document: [FR Doc. 02-31402 Filed 12-12-02; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46951; File No. SR-NASD-2002-121]
Self-Regulatory Organizations;Order Approving Proposed Rule Change by the National Association of Securities Dealers, Inc. To Modify Application of Additional Circuit/SDP Charge Under Rule 7010(f) to Non-NASD Members
December 6, 2002.
On September 12, 2002, the National Association of Securities Dealers, Inc. ("NASD"), 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")1and Rule 19b-4 thereunder,2a proposed rule change to modify application of Additional Circuit/SDP Charge under NASD Rule 7010(f) to Non-NASD Members.3Specifically, Nasdaq proposes to impose the Additional Circuit/SDP Charge under NASD Rule 7010(f) on those subscribers who do not utilize existing T1 capacity efficiently by placing 18 service delivery platforms ("SDPs") on each T1 circuit.4
Footnotes:
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
3 Nasdaq also submitted a proposed rule change to modify the conditions under which members pay the Additional Circuit/SDP Charge. See Securities Exchange Act Release No. 46695 (October 21, 2002), 67 FR 65819 (October 28, 2002) (SR-NASD-2002-120).
4 Currently, the Additional Circuit/SDP Charge only applies if a subscriber does not place 6 SDPs on each T1 circuit.
The proposed rule change was published for comment in the Federal Register on October 28, 2002.5The Commission received no comments on the proposal.
Footnotes:
5 See Securities Exchange Act Release No. 46696 (October 21, 2002), 67 FR 65821 (October 28, 2002) (SR-NASD-2002-121).
The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities association.6The Commission finds specifically that the proposed rule change promotes the objectives of Section 15A(b)(6) of the Act,7which requires, among other things, that the rules of the association be designed to facilitate transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, because the increased efficiency of Nasdaq's T1 circuits, which will expand the available capacity of Nasdaq's Enterprise Wide Network II ("EWN II") should enhance Nasdaq's ability to keep pace with future growth in trading volumes.
Footnotes:
6 In approving this proposed rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
7 15 U.S.C. 78 o -3(b)(6).
In addition, the Commission finds that the proposed rule change is consistent with Section 15A(b)(5) of the Act8which requires that the rules of the association provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities.
Footnotes:
8 15 U.S.C. 78 o -3(b)(5).
The Commission notes that this fee applies to members and non-members equally.9
Footnotes:
9 See supra note 3.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10that the proposed rule change (File No. SR-NASD-2002-121) is hereby approved.
Footnotes:
10 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11
Jill M. Peterson,
Assistant Secretary.
Footnotes:
11 17 CFR 200.30-3(a)(12).
[FR Doc. 02-31402 Filed 12-12-02; 8:45 am]
BILLING CODE 8010-01-P