[Federal Register: October 15, 2008 (Volume 73, Number 200)]
[Notices]
[Page 61181-61183]
[DOCID:fr15oc08-151]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58752; File No. SR-NASDAQ-2008-080]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Fees for Access to the Clearly Erroneous Functionality of the
Nasdaq Regulation Reconnaissance Service

October 8, 2008.
    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 6, 2008, The NASDAQ Stock Market LLC (``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 Nasdaq. Pursuant to Section 19(b)(3)(A)(ii) of
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ Nasdaq has designated
this proposal as establishing or changing a due, fee, or other charge,
which renders the proposed rule change effective upon filing.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii)
    \4\ 17 C.F.R. 240.19b-4(f)(2).
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    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

    Nasdaq proposes to establish fees for access to the Clearly
Erroneous functionality provided by the Nasdaq Regulation
Reconnaissance Service.
    The text of the proposed rule change is below. Proposed new
language is in italics.\5\
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    \5\ Changes are marked to the rule text that appears in the
electronic NASDAQ Manual found at http: //
nasdaqomx.cchwallstreet.com.
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* * * * *

7041. Nasdaq Regulation Reconnaissance Service

    (a) No change.
    (b) The Clearly Erroneous Viewer will be available to non-
Regulation Reconnaissance Service subscribers for a subscription fee of
$100 per MPID, per month.
* * * * *

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 proposes to establish fees for limited access to the Clearly
Erroneous Module of the Nasdaq Regulation Reconnaissance Service (``Reg
Recon''). Reg Recon is currently available as an add-on to the Nasdaq
Workstation and Weblink ACT 2.0. Reg Recon includes a Clearly Erroneous
Module, which gives a subscribing firm real-time alerts when the firm
has potentially erroneous trades.
    The Clearly Erroneous Module also offers Reg Recon subscribers an
automated filing functionality, whereby a user can select their
erroneous trades and electronically file them with Nasdaq's Market
Watch Department in lieu of locating the form on the Nasdaq Web site
and manually entering in all of the required information.
    Nasdaq proposes to offer access to the Clearly Erroneous Module
through the Clearly Erroneous Viewer, which will provide users with the
same functionality as the Clearly Erroneous Module without having to
pay for the full suite of functionality provided by the Nasdaq
Workstation and Weblink ACT 2.0. Regulation NMS monitoring is typically
conducted by a small number of people within a firm's compliance group,
and often requires look-ups in ACT and/or Time and Sales, both of which
are offered by Nasdaq Workstation and Weblink ACT 2.0. Responsibility
for a firm's clearly erroneous filings, however, is typically spread
out across a much larger group of individuals at a firm. These
individuals do not need the additional functionality that is provided
by the Nasdaq Workstation or Weblink 2.0, yet to access the Clearly
Erroneous Module firms must pay the full amount for the Nasdaq
Workstation or Weblink ACT 2.0, currently $475 per user, per month and
$375 per month, respectively.\6\ As such, Nasdaq is proposing to offer
the Clearly Erroneous viewer for a subscription fee of $100 per user,
per month. The proposed fee will cover the costs associated with
establishing the service, responding to customer requests, configuring
Nasdaq's systems, programming to user specifications, and administering
the service, among other things.
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    \6\ Weblink users with up to an average of twenty transactions
per day each month are charged a fee of $200 per month.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ in particular, in that it provides 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 Nasdaq operates or controls, and it does not unfairly
discriminate between customers, issuers, brokers or dealers. Use of the
Clearly Erroneous Viewer is voluntary and the subscription fees will be
imposed on all purchasers equally. The proposed fees will cover the
costs associated with establishing the service, responding to customer
requests, configuring Nasdaq's systems, programming to user
specifications, and administering the service, among other things.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
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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, 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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\10\ At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2008-080 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2008-080. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). 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 on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of Nasdaq. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2008-080 and should be submitted on or before
November 5, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-24375 Filed 10-14-08; 8:45 am]

BILLING CODE 8011-01-P