[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11925]
[[Page Unknown]]
[Federal Register: May 17, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34029; File No. SR-NASD-94-18]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc. Relating to the Elimination of Certain Data
Stream Subscriber Fees
May 9, 1994.
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 March
24, 1994, the National Association of Securities Dealers, Inc.
(``NASD'' or ``Association'') filed with the Securities and Exchange
Commission (``Commission'' or ``SEC'') 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 section 19(b)(1) of the Act, the NASD is submitting
this proposed rule change to eliminate the existing subscriber fees for
receipt of data streams of selected market data. These fees are
currently contained in Section C., Part VIII of Schedule D to the NASD
By-Laws. The text of the proposed rule change is set forth below. (New
language is in italics and deletions are in brackets.)
C. Special Options
* * * * * * *
[4. Level 1 Data Stream]................ [Permits Subscriber to process Level 1 data directly [$500/month].
into its computer system for its own analysis.
Subscriber is responsible for line and modem
charges and separate charges for any terminal
display.]
[5. Last Sale Data Stream].............. [Permits subscriber to process NASDAQ/NMS last sale [$500/month].
data directly into its own computer system for
analytic purposes. Subscriber is responsible for
line and modem charges, and separate charges for
any terminal display.]
[6. NQDS Data Stream]................... [Permits subscriber to process NQDS quotation data [$500/month].
directly into its own computer system for analytic
purposes. Subscriber is responsible for line and
modem charges, and separate charges for any
terminal display.]
4. [7.] Nasdaq Market Indices........... Permits vendor to process Nasdaq Level 1 and Last $500/month.
Sale data feeds solely for the purpose of supplying
subscribers with real-time calculations of Nasdaq
market indices.
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 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
The NASD is proposing to eliminate three categories of subscriber
fees for the receipt of data streams consisting of Nasdaq Level 1
quotation information, Nasdaq Last Sale information, and the National
Quotation Data Service (``NQDS'') information. Each of these services
enables a subscriber to receive and process data in its own computer
system in order to generate market analytics. The current subscriber
charge for each of these services is $500/month regardless of the
number of analytic applications performed. The NASD effectuated removal
of these data stream fees on April 1, 1994.
The Association's determination on this matter was driven by three
factors: (1) technological changes in the use of market information;
(2) growth in software packages offered by vendors specializing in
market analytics; and (3) practical difficulties in administering the
existing fees in light of the increasing sophistication of broker-
dealers' internal automation facilities. From a revenue standpoint,
elimination of the data stream fees will have no appreciable impact on
the level of revenues needed to recover the costs associated with
collecting, processing, and distributing quotation/last sale
information via the Level 1, Last Sale, and NQDS services.
2. Statutory Basis
The NASD believes that the proposed rule change is consistent with
and in furtherance of Section 15A(b)(5) of the Act. Section 15A(b)(5)
requires that the rules of a national securities association provide
for the equitable allocation of reasonable dues, fees, and other
charges among members, issuers and other persons using any facility or
system which the association operates or controls. The NASD believes
that revenue lost by eliminating the data stream fees will be offset by
continued growth in the terminal populations receiving Level 1, Last
Sale, and NQDS services. Hence, it is anticipated that total revenues
will remain at levels sufficient to ensure satisfaction of the
statutory mandate that established fees be reasonable and equitably
allocated.
B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD believes that the proposed rule change will not 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
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change establishes or changes a due, fee, or
other charge imposed by the Association and therefore has become
effective pursuant to section 19(b)(3)(A) of the Act and subparagraph
(e) of Rule 19b-4 thereunder. At any time within 60 days of the filing
of such 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.
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 June 7, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-11925 Filed 5-16-94; 8:45 am]
BILLING CODE 8010-01-M