Proposed Fees for Nasdaq Market Pathfinders Service

SIFMA provides comments to the Securities and Exchange Commission (SEC) on a proposed rule change by The NASDAQ Stock Market LLC to establish fees for Nasdaq Market Pathfinders Service, File No. SR-NASDAQ-2008-0016, SEC Release No. 34-57917.  SIFMA argues that the proposal would be overturned in a Court of Appeals due to the arbitrariness caused by the lack of a cost justification for the levels of fees. SIFMA is also concerned about the legality of making commercial use out of data supplied to Nasdaq as a regulatory body. Finally, SIFMA is concerned that this information would provide a means to reverse engineer algorithms that industry professionals have created for proprietary trading.