Self Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by National Association of Securities Dealers, Inc. To Provide Guidance Regarding Members' Regulatory Transaction Fees, 8649-8650 [E5-693]
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Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Notices
8649
Register or within such longer period (i)
as the Commission may designate up to
ninety days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FICC–
2004–23 and should be submitted on or
before March 15, 2005.
form that is used by members to report
trade data that is not captured.
No changes to the text of NASD rules
are required by this proposed rule
change.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–692 Filed 2–18–05; 8:45 am]
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:
BILLING CODE 8010–01–P
In its filing with the Commission,
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. NASD has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FICC–2004–23 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51187; File No. SR–NASD–
2005–021]
Self Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by National
Association of Securities Dealers, Inc.
To Provide Guidance Regarding
Members’ Regulatory Transaction Fees
February 10, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on February
• Send paper comments in triplicate
4, 2005, the National Association of
to Jonathan G. Katz, Secretary,
Securities Dealers, Inc. (‘‘NASD’’) filed
Securities and Exchange Commission,
with the Securities and Exchange
450 Fifth Street, NW., Washington, DC
Commission (‘‘Commission’’) the
20549–0609.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–FICC–2004–23. This file
have been prepared by NASD. NASD
number should be included on the
subject line if e-mail is used. To help the has designated the proposed rule change
as constituting a stated policy, practice,
Commission process and review your
or interpretation with respect to the
comments more efficiently, please use
only one method. The Commission will meaning, administration, or
post all comments on the Commission’s enforcement of an existing rule of the
self-regulatory organization pursuant to
Internet Web site (https://www.sec.gov/
Section 19(b)(3)(A)(i) of the Act 3 and
rules/sro.shtml). Copies of the
Rule 19b–4(f)(1) thereunder,4 which
submission, all subsequent
renders the proposal effective upon
amendments, all written statements
receipt of this filing by the Commission.
with respect to the proposed rule
The Commission is publishing this
change that are filed with the
notice to solicit comments on the
Commission, and all written
proposed rule change from interested
communications relating to the
persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Terms of Substance of
public in accordance with the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
NASD is filing Notice to Members
available for inspection and copying in
(‘‘NtM’’) 05–11, providing further
the Commission’s Public Reference
guidance regarding members’
Section, 450 Fifth Street, NW.,
obligations under Section 3 of Schedule
Washington, DC 20549. Copies of such
A to the NASD By-Laws (Regulatory
filing also will be available for
Transaction Fees) and a self-reporting
inspection and copying at the principal
office of FICC and on FICC’s Web site
1 15 U.S.C. 78s(b)(1).
at https://www.ficc.com. All comments
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
received will be posted without change;
4 17 CFR 240.19b–4(f)(1).
the Commission does not edit personal
VerDate jul<14>2003
19:10 Feb 18, 2005
Jkt 205001
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
II. Self-Regulatory OrgChange
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In August 2004, NASD issued NtM
04–63 (Transaction Fees: New SEC
Procedures Relating to section 31 of the
Securities Exchange Act of 1934)
informing member firms of the new
Commission procedures governing the
calculation, payment, and collection of
fees and assessments on securities
transactions owed by national securities
exchanges and associations to the
Commission pursuant to section 31 of
the Act. NtM 04–63 also discussed the
obligations of member firms under
section 3 of Schedule A to the NASD
By-Laws in light of the new Commission
procedures.
Following the publication of NtM 04–
63, NASD staff has received a significant
number of questions from member firms
regarding these obligations.
Accordingly, NASD staff is providing
further guidance regarding these
obligations in NtM 05–11. In NtM 05–
11, NASD staff is, among other things,
providing guidance on what constitutes
an away-from-the-market sale and
additional information regarding
member firms’ self-reporting
obligations. NASD also is reminding
members about the restrictions on the
use of the Step-Out function in ACT for
transferring NASD’s regulatory
transaction fee to correspondents or
broker-dealer customers. In addition,
NtM 05–11 is revoking prior guidance
concerning the appropriate rounding
methodology used by member firms
when they choose to pass regulatory
transaction fees to their customers.
Specifically, the guidance in NtM 05–11
regarding rounding supersedes the
rounding guidance provided in NtM 04–
63 or any prior NtMs and Member
Alerts.
E:\FR\FM\22FEN1.SGM
22FEN1
8650
Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Notices
NASD believes that the guidance
provided in NtM 05–11 constitutes an
interpretation of section 3 of Schedule
A to the NASD By-Laws that, due to its
nature, should be filed as a proposed
rule change. In addition, NASD also is
filing its Permanent Self-Reporting Form
with the Commission.5 A copy of the
Permanent Self-Reporting Form will be
attached to NtM 05–11. NASD has
revised its Permanent Self-Reporting
Form to: (1) Incorporate the new rate
structure that became effective on
January 7, 2005 (in conformity with the
change to the Commission’s Section 31
fee rate); (2) incorporate minor changes
to the instructions section; and (3)
create an obligation on certain member
firms to file the Permanent SelfReporting Form each month (regardless
of whether they have any reportable
transactions).
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of section 15A(b)(6) of the Act,6 which
requires, among other things, that
NASD’s rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. In addition, NASD
believes that the proposed rule change
is consistent with the provisions of
section 15A(b)(5) of the Act,7 which
requires, among other things, that
NASD’s rules provide for the equitable
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using any
facility or system that NASD operates or
controls, insofar as it is intended to
assist members in complying with
section 3 of Schedule A to the NASD
By-Laws.
5 As
noted in NtM 05–11, clearing and selfclearing member firms will now be required to file
with NASD the Permanent Self-Reporting Form
each month, regardless of whether they have
qualifying transactions for that month. NASD is
requiring a monthly filing by all clearing and selfclearing member firms to ensure that they conduct
the necessary review to determine that all
qualifying transactions have been properly
reported. Member firms that do not have any
reportable transactions for a given month will be
required to submit the blank form signed by an
authorized representative, along with a statement
that the firm had no reportable transactions for the
month. While NASD is filing its Permanent SelfReporting Form with the Commission in this
instance, NASD does not intend to file its
Permanent Self-Reporting Form with the
Commission each time it makes a non-substantive
change to the text of the form or changes that reflect
adjustments in the amount or scope of the fee,
where such adjustments are determined solely by
reference to section 31 of the Act.
6 15 U.S.C. 78o–3(b)(6).
7 15 U.S.C. 78o–3(b)(5).
VerDate jul<14>2003
19:10 Feb 18, 2005
Jkt 205001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD 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.
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 proposed rule change has become
effective pursuant to section
19(b)(3)(A)(i) of the Act 8 and Rule 19b–
4(f)(1) thereunder.9 NASD asserts that
the proposed rule change constitutes a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of NASD. NASD will
announce the implementation date of
the proposed rule change in NtM 05–11,
which NASD expects to issue on the
same date as the filing of the proposed
rule change with the Commission. 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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2005–021 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
PO 00000
8 15
9 17
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
Frm 00083
Fmt 4703
Sfmt 4703
All submissions should refer to File
Number SR–NASD–2005–021. 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 (https://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. Copies of such filing also will be
available for inspection and copying at
the principal office of NASD. 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 the
File Number SR–NASD–2005–021 and
should be submitted on or before March
15, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–693 Filed 2–18–05; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 4997]
Bureau of Political-Military Affairs:
Directorate of Defense Trade Controls;
Notifications to the Congress of
Proposed Commercial Export Licenses
ACTION:
Notice.
SUMMARY: Notice is hereby given that
the Department of State has forwarded
the attached Notifications of Proposed
Export Licenses to the Congress on the
dates shown on the attachments
pursuant to sections 36(c) and 36(d) and
in compliance with section 36(f) of the
Arms Export Control Act (22 U.S.C.
2776).
DATES: Effective Date: As shown on each
of the sixteen letters.
10 17
E:\FR\FM\22FEN1.SGM
CFR 200.30–3(a)(12).
22FEN1
]]>Agencies
[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Notices]
[Pages 8649-8650]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-693]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51187; File No. SR-NASD-2005-021]
Self Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc. To Provide Guidance Regarding Members'
Regulatory Transaction Fees
February 10, 2005.
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 February 4, 2005, the National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD. NASD has
designated the proposed rule change as constituting a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of the self-
regulatory organization pursuant to Section 19(b)(3)(A)(i) of the Act
\3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
effective upon receipt of this filing by the Commission. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD is filing Notice to Members (``NtM'') 05-11, providing further
guidance regarding members' obligations under Section 3 of Schedule A
to the NASD By-Laws (Regulatory Transaction Fees) and a self-reporting
form that is used by members to report trade data that is not captured.
No changes to the text of NASD rules are required by this proposed
rule change.
II. Self-Regulatory OrgChange
In its filing with the Commission, 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. 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
In August 2004, NASD issued NtM 04-63 (Transaction Fees: New SEC
Procedures Relating to section 31 of the Securities Exchange Act of
1934) informing member firms of the new Commission procedures governing
the calculation, payment, and collection of fees and assessments on
securities transactions owed by national securities exchanges and
associations to the Commission pursuant to section 31 of the Act. NtM
04-63 also discussed the obligations of member firms under section 3 of
Schedule A to the NASD By-Laws in light of the new Commission
procedures.
Following the publication of NtM 04-63, NASD staff has received a
significant number of questions from member firms regarding these
obligations. Accordingly, NASD staff is providing further guidance
regarding these obligations in NtM 05-11. In NtM 05-11, NASD staff is,
among other things, providing guidance on what constitutes an away-
from-the-market sale and additional information regarding member firms'
self-reporting obligations. NASD also is reminding members about the
restrictions on the use of the Step-Out function in ACT for
transferring NASD's regulatory transaction fee to correspondents or
broker-dealer customers. In addition, NtM 05-11 is revoking prior
guidance concerning the appropriate rounding methodology used by member
firms when they choose to pass regulatory transaction fees to their
customers. Specifically, the guidance in NtM 05-11 regarding rounding
supersedes the rounding guidance provided in NtM 04-63 or any prior
NtMs and Member Alerts.
[[Page 8650]]
NASD believes that the guidance provided in NtM 05-11 constitutes
an interpretation of section 3 of Schedule A to the NASD By-Laws that,
due to its nature, should be filed as a proposed rule change. In
addition, NASD also is filing its Permanent Self-Reporting Form with
the Commission.\5\ A copy of the Permanent Self-Reporting Form will be
attached to NtM 05-11. NASD has revised its Permanent Self-Reporting
Form to: (1) Incorporate the new rate structure that became effective
on January 7, 2005 (in conformity with the change to the Commission's
Section 31 fee rate); (2) incorporate minor changes to the instructions
section; and (3) create an obligation on certain member firms to file
the Permanent Self-Reporting Form each month (regardless of whether
they have any reportable transactions).
---------------------------------------------------------------------------
\5\ As noted in NtM 05-11, clearing and self-clearing member
firms will now be required to file with NASD the Permanent Self-
Reporting Form each month, regardless of whether they have
qualifying transactions for that month. NASD is requiring a monthly
filing by all clearing and self-clearing member firms to ensure that
they conduct the necessary review to determine that all qualifying
transactions have been properly reported. Member firms that do not
have any reportable transactions for a given month will be required
to submit the blank form signed by an authorized representative,
along with a statement that the firm had no reportable transactions
for the month. While NASD is filing its Permanent Self-Reporting
Form with the Commission in this instance, NASD does not intend to
file its Permanent Self-Reporting Form with the Commission each time
it makes a non-substantive change to the text of the form or changes
that reflect adjustments in the amount or scope of the fee, where
such adjustments are determined solely by reference to section 31 of
the Act.
---------------------------------------------------------------------------
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\6\ which requires, among
other things, that NASD's rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. In addition, NASD believes that the proposed rule
change is consistent with the provisions of section 15A(b)(5) of the
Act,\7\ which requires, among other things, that NASD's rules provide
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility
or system that NASD operates or controls, insofar as it is intended to
assist members in complying with section 3 of Schedule A to the NASD
By-Laws.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o-3(b)(6).
\7\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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.
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 proposed rule change has become effective pursuant to section
19(b)(3)(A)(i) of the Act \8\ and Rule 19b-4(f)(1) thereunder.\9\ NASD
asserts that the proposed rule change constitutes a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of NASD. NASD will
announce the implementation date of the proposed rule change in NtM 05-
11, which NASD expects to issue on the same date as the filing of the
proposed rule change with the Commission. 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2005-021 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-NASD-2005-021. 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 (https://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. Copies of such
filing also will be available for inspection and copying at the
principal office of NASD. 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 the File Number SR-NASD-2005-021
and should be submitted on or before March 15, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-693 Filed 2-18-05; 8:45 am]
BILLING CODE 8010-01-P
