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Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
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October 6, 2005
TO: ACCOUNTING/TREASURERS COMMITTEE No. 16-05
END OF DAY PRICING FORUM No. 5-05
OPERATIONS COMMITTEE No. 23-05
RE: PROPOSED FEE CHANGES TO NASDAQ’S MUTUAL FUND QUOTATION SERVICE
As we previously informed you, The Nasdaq Stock Market, Inc. (“NASDAQ”), filed
with the Securities and Exchange Commission (“SEC”) proposed changes to NASD Rule 7090 to
increase annual listing and administrative fees to subscribers of the Mutual Fund Quotation
Service (“MFQS”).1 NASDAQ had proposed to increase fees “as soon as practicable” following
SEC approval and in January 2006 for existing fund listings. The ICI filed a comment letter that
supported NASDAQ’s planned enhancements to the MFQS and the proposed fee increases but
urged that the proposed fee increases only be assessed once the planned enhancements are
implemented.2
We are pleased to inform you that as a result of the Institute’s comment letter, NASDAQ
amended their filing on September 14, 2005. The SEC adopted the amended proposal in a form
that takes into account the concerns expressed by the Institute. A copy of the Institute’s
comment letter and the SEC Release adopting NASDAQ’s proposal, dated October 4, 2005, are
attached.3
Please contact me at 202-326-5869 or at salmon@ici.org if you have any questions.
Peter G. Salmon
Director – Operations & Technology
1 See SEC Release No. 34-51836 (June 13, 2005).
2 See Memorandum to Accounting/Treasurers Committee No. 09-05, End-Of–Day Pricing Forum No. 3-05 and Small
Funds Members 64-05, dated July 15, 2005.
3 See SEC Release No. 34-52517 (October 4, 2005).