Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 55 Examination Program, 8864-8866 [E5-737]
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Federal Register / Vol. 70, No. 35 / Wednesday, February 23, 2005 / Notices
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
III. Date of Effectiveness of the
change that are filed with the
Proposed Rule Change and Timing for
Commission, and all written
Commission Action
communications relating to the
The proposed rule change has become proposed rule change between the
Commission and any person, other than
effective pursuant to section
19(b)(3)(A)(i) of the Act 11 and Rule 19b– those that may be withheld from the
public in accordance with the
4(f)(1) thereunder,12 in that the
provisions of 5 U.S.C. 552, will be
proposed rule change constitutes a
stated policy, practice, or interpretation available for inspection and copying in
the Commission’s Public Reference
with respect to the meaning,
Room. Copies of such filing also will be
administration, or enforcement of an
available for inspection and copying at
existing rule of the self-regulatory
the principal office of the NASD. All
organization. NASD proposes to
comments received will be posted
implement the Series 11 examination
without change; the Commission does
program no later than April 29, 2005.
not edit personal identifying
NASD will announce the
information from submissions. You
implementation date in a Notice to
should submit only information that
Members to be published no later than
you wish to make available publicly. All
60 days after SEC Notice of this filing.
submissions should refer to File
At any time within 60 days of the
Number SR–NASD–2005–014 and
filing of the proposed rule change, the
should be submitted on or before March
Commission may summarily abrogate
16, 2005.
such rule change if it appears to the
Commission that such action is
For the Commission, by the Division of
necessary or appropriate in the public
Market Regulation, pursuant to delegated
interest, for the protection of investors,
authority.13
or otherwise in furtherance of the
Margaret H. McFarland,
purposes of the Act.
Deputy Secretary.
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.
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:
[FR Doc. E5–736 Filed 2–22–05; 8:45 am]
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–2005–014 on the
subject line.
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to
the Series 55 Examination Program
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51215; File No. SR–NASD–
2005–015]
February 16, 2005.
Pursuant to section 19(b)(1) of the
Paper Comments
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on January
to Jonathan G. Katz, Secretary,
31, 2005, the National Association of
Securities and Exchange Commission,
Securities Dealers, Inc. (‘‘NASD’’) filed
450 Fifth Street, NW., Washington, DC
with the Securities and Exchange
20549–0609.
Commission (‘‘SEC’’ or ‘‘Commission’’)
All submissions should refer to File
the proposed rule change as described
Number SR–NASD–2005–014. This file
in items I, II and III below, which items
number should be included on the
subject line if e-mail is used. To help the have been prepared by NASD. NASD
filed this proposal pursuant to section
Commission process and review your
comments more efficiently, please use
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 15
U.S.C. 78s(b)(3)(A)(i).
12 17 CFR 240.19b–4(f)(1).
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16:28 Feb 22, 2005
1 15
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Sfmt 4703
19(b)(3)(A)(i) 3 of the Act and Rule 19b–
4(f)(1) thereunder,4 which renders the
proposal effective upon filing with the
Commission. 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
NASD is filing revisions to the study
outline and selection specifications for
the Limited Representative—Equity
Trader (Series 55) examination
program.5 The proposed revisions
update the material to reflect changes to
the laws, rules, and regulations covered
by the examination. NASD is not
proposing any textual changes to the ByLaws, Schedules to the By-Laws, or
Rules of NASD.
The revised study outline is available
at NASD and at the Commission.
However, NASD has omitted the Series
55 selection specifications from this
filing and has submitted the
specifications under separate cover to
the Commission with a request for
confidential treatment pursuant to Rule
24b–2 under the Act.6
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASD included statements concerning
the purpose of and basis for its proposal
and discussed any comments it received
regarding the proposal. 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
Pursuant to section 15A(g)(3) of the
Act,7 which requires NASD to prescribe
3 15
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
5 NASD also is proposing corresponding revisions
to the Series 55 question bank, but based upon
instruction from the Commission staff, NASD is
filing SR–NASD–2005–015 for immediate
effectiveness, and is not filing the question bank for
Commission review. See letter to Alden S. Adkins,
Senior Vice President and General Counsel, NASD
Regulation, from Belinda Blaine, Associate Director,
Division of Market Regulation, SEC, dated July 24,
2000. The question bank is available for
Commission review.
6 17 CFR 240.24b–2.
7 15 U.S.C. 78o–3(g)(3).
4 17
E:\FR\FM\23FEN1.SGM
23FEN1
Federal Register / Vol. 70, No. 35 / Wednesday, February 23, 2005 / Notices
standards of training, experience, and
competence for persons associated with
NASD members, NASD has developed
examinations, and administers
examinations developed by other selfregulatory organizations, that are
designed to establish that persons
associated with NASD members have
attained specified levels of competence
and knowledge. NASD periodically
reviews the content of the examinations
to determine whether revisions are
necessary or appropriate in view of
changes pertaining to the subject matter
covered by the examinations.
The Series 55 examination is
required, with certain limited
exceptions, for registered
representatives who are engaged in
proprietary trading, the execution of
transactions on an agency basis, or the
direct supervision of such activities,
with respect to transactions in equity,
preferred or convertible debt securities
effected otherwise than on a securities
exchange. There is an exception from
the requirement for the Series 55
examination for any person associated
with a member whose trading activities
are conducted principally on behalf of
an investment company that is
registered with the Commission
pursuant to the Investment Company
Act of 1940 8 and that controls, is
controlled by, or is under common
control with the member.
A committee of industry
representatives, together with NASD
staff, recently undertook a review of the
Series 55 examination program. As a
result of this review, NASD is proposing
revisions to the section on The Nasdaq
Stock Market, Inc. (‘‘NASDAQ’’)
Automated Execution and Trading
Systems in the study outline to better
reflect the importance of the NASDAQ
Market Center—Execution Service
(SuperMontage). NASD also is
proposing revisions to the study outline
to remove certain portions (such as SEC
Rules 11Ac1–7 9 and 17a–4,10
Overallotments (Greenshoe), Tender
Offers, and NASD Rule 11810 (BuyingIn)) that relate more to a firm’s sales
practice or operations department than
to the firms’ NASDAQ trading desk. As
a result of the revisions, the title of
Section 2 was changed from ‘‘NASDAQ
Automated Execution and Trading
Systems’’ to ‘‘NASDAQ Display,
Execution and Trading Systems.’’ NASD
is further proposing revisions to the
study outline to reflect the new SEC
8 15
U.S.C. 80a–1 et seq.
CFR 240.11Ac1–7.
10 17 CFR 240.17a–4.
9 17
VerDate jul<14>2003
16:28 Feb 22, 2005
Jkt 205001
8865
short sale requirements.11 In addition,
the number of questions on each section
of the study outline was modified as
follows: NASDAQ and Over-TheCounter Markets, decreased from 45 to
42 questions; NASDAQ Display,
Execution and Trading Systems,
increased from 9 to 15 questions; Trade
Reporting Requirements, decreased from
18 to 16 questions; and General Industry
Standards, decreased from 28 to 27
questions.
NASD is proposing similar changes to
the corresponding sections of the Series
55 selection specifications and question
bank. The number of questions on the
Series 55 examination will remain at
100, and candidates will have three
hours to complete the exam. Also, each
question will continue to count one
point, and each candidate must
correctly answer 70 percent of the
questions to receive a passing grade
program no later than April 29, 2005.
NASD will announce the
implementation date in a Notice to
Members to be published no later than
60 days after SEC Notice of this filing.
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.
2. Statutory Basis.
NASD believes that the proposed
revisions to the Series 55 examination
program are consistent with the
provisions of sections 15A(b)(6) 12 and
15A(g)(3) of the Act,13 which authorize
NASD to prescribe standards of training,
experience, and competence for persons
associated with NASD members.
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–2005–015 on the
subject line.
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:
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–2005–015. This file
number should be included on the
C. Self-Regulatory Organization’s
subject line if e-mail is used. To help the
Statement on Comments on the
Commission process and review your
Proposed Rule Change Received From
comments more efficiently, please use
Members, Participants or Others
only one method. The Commission will
Written comments were neither
post all comments on the Commission’s
solicited nor received.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
III. Date of Effectiveness of the
submission, all subsequent
Proposed Rule Change and Timing for
amendments, all written statements
Commission Action
with respect to the proposed rule
The proposed rule change has become change that are filed with the
effective pursuant to section
Commission, and all written
19(b)(3)(A)(i) of the Act 14 and Rule 19b– communications relating to the
15 in that the
4(f)(1) thereunder,
proposed rule change between the
proposed rule change constitutes a
Commission and any person, other than
stated policy, practice, or interpretation those that may be withheld from the
with respect to the meaning,
public in accordance with the
administration, or enforcement of an
provisions of 5 U.S.C. 552, will be
existing rule of the self-regulatory
available for inspection and copying in
organization. NASD proposes to
the Commission’s Public Reference
implement the Series 55 examination
Room. Copies of such filing also will be
available for inspection and copying at
11 Exchange Act Release No. 50103 (July 28,
the principal office of the NASD. All
2004), 69 FR 48008 (August 6, 2004) (S7–23–2003).
comments received will be posted
12 15 U.S.C. 78o–3(b)(6).
without change; the Commission does
13 15 U.S.C. 78o–3(g)(3).
14 15 U.S.C. 78s(b)(3)(A)(i).
not edit personal identifying
15 17 CFR 240.19b–4(f)(1).
information from submissions. You
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, as amended.
PO 00000
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E:\FR\FM\23FEN1.SGM
23FEN1
8866
Federal Register / Vol. 70, No. 35 / Wednesday, February 23, 2005 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NASD–2005–015 and
should be submitted on or before March
16, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–737 Filed 2–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51216; File No. SR–NASD–
2005–025]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to
the Series 4 Examination Program
February 16, 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 January
31, 2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in items I, II and III below, which items
have been prepared by NASD. NASD
filed this proposal pursuant to section
19(b)(3)(A)(i) 3 of the Act and Rule 19b–
4(f)(1) thereunder,4 which renders the
proposal effective upon filing with the
Commission. 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
NASD is filing revisions to the study
outline and selection specifications for
the Limited Principle—Registered
Options (Series 4) examination
program.5 The proposed revisions
16 17
CFR 200.30–3(a)(12).
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).
5 NASD also is propoosing corresponding
revisions to the Series 4 question bank, but based
upon instruction from the Commission staff, NASD
is filing SR–NASD–2005–025 for immediate
effectiveness, and is not filing the question bank for
Commission review. See letter to Alden S. Adkins,
Senior Vice President and General Counsel, NASD
Regulation, from Belinda Blaine, Associate Director,
1 15
VerDate jul<14>2003
16:28 Feb 22, 2005
Jkt 205001
update the material to reflect changes to
the laws, rules, and regulations covered
by the examination. NASD is not
proposing any textual changes to the ByLaws, Schedules to the By-Laws, or
Rules of NASD.
The revised study outline is available
at NASD and at the Commission.
However, NASD has omitted the Series
4 selection specifications from this
filing and has submitted the
specifications under separate cover to
the Commission with a request for
confidential treatment pursuant to Rule
24b–2 under the Act.6
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASD included statements concerning
the purpose of and basis for its proposal
and discussed any comments it received
regarding the proposal. 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
Pursuant to section 15A(g)(3) of the
Act,7 which requires NASD to prescribe
standards of training, experience, and
competence for persons associated with
NASD members, NASD has developed
examinations, and administers
examinations developed by other selfregulatory organizations (‘‘SROs’’), that
are designed to establish that persons
associated with NASD members have
attained specified levels of competence
and knowledge. NASD periodically
reviews the content of the examinations
to determine whether revisions are
necessary or appropriate in view of
changes pertaining to the subject matter
covered by the examinations.
NASD Rule 1022(f) states that member
firms engaged in, or intending to engage
in, transactions in security futures or
put or call options with the public must
have at least one Registered Options and
Security Futures Principal. In addition,
every individual engaged in the
management of the day-to-day options
or security futures activities of a firm
Division of Market Regulation, SEC, dated July 24,
2000. The question bank is available for
Commission review.
6 17 CFR 240.24b–2.
7 15 U.S.C. 78o–3(g)(3).
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
must be registered as a Registered
Options and Security Futures Principal.
The Series 4 examination, an industrywide examination, qualifies an
individual to function as a Registered
Options and Security Futures Principal,
but only for purposes of supervising a
member firm’s options activities.8 The
Series 4 examination tests a candidate’s
knowledge of options trading generally,
the NASD rules applicable to trading of
option contracts, and the rules of
registered clearing agencies for options.
The Series 4 examination covers, among
other things, equity options, foreign
currency options, index options, and
options on government and mortgagebacked securities.
The Series 4 examination program is
shared by NASD and the following
SROs: the American Stock Exchange
LLC, the Chicago Board Options
Exchange, Incorporated, the New York
Stock Exchange, Inc., the Pacific
Exchange, Inc., and the Philadelphia
Stock Exchange, Inc. NASD understands
that the other SROs also will file with
the Commission similar revisions to the
Series 4 examination program.
A committee of industry
representatives, together with NASD
staff, recently undertook a review of the
Series 4 examination program. As a
result of this review and as part of an
ongoing effort to align the examination
more closely to the supervisory duties of
a Series 4 principal, NASD is proposing
to modify the content of the
examination to track the functional
workflow of a Series 4 principal. More
specifically, NASD is proposing to
revise the main section headings and
the number of questions on each section
of the Series 4 study outline as follows:
Options Investment Strategies,
decreased from 35 to 34 questions;
Supervision of Sales Activities and
Trading Practices, increased from 71 to
75 questions; and Supervision of
Employees, Business Conduct, and
Recordkeeping and Reporting
Requirements, decreased from 19 to 16
questions. NASD is further proposing
revisions to the study outline to reflect
the new SEC short sale requirements.
The revised examination continues to
cover the areas of knowledge required to
supervise options activities.
NASD is proposing similar changes to
the corresponding sections of the Series
4 selection specifications and question
bank. The number of questions on the
Series 4 examination will remain at 125,
8 A Registered Options and Security Futures
Principal also must complete a firm-element
continuing education program that addresses
security futures and a principal’s responsibilities
for security futures before such person can
supervise security futures activities.
E:\FR\FM\23FEN1.SGM
23FEN1
]]>Agencies
[Federal Register Volume 70, Number 35 (Wednesday, February 23, 2005)]
[Notices]
[Pages 8864-8866]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-737]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51215; File No. SR-NASD-2005-015]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to the Series 55 Examination Program
February 16, 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 January 31, 2005, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
items I, II and III below, which items have been prepared by NASD. NASD
filed this proposal pursuant to section 19(b)(3)(A)(i) \3\ of the Act
and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
effective upon filing with 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 revisions to the study outline and selection
specifications for the Limited Representative--Equity Trader (Series
55) examination program.\5\ The proposed revisions update the material
to reflect changes to the laws, rules, and regulations covered by the
examination. NASD is not proposing any textual changes to the By-Laws,
Schedules to the By-Laws, or Rules of NASD.
---------------------------------------------------------------------------
\5\ NASD also is proposing corresponding revisions to the Series
55 question bank, but based upon instruction from the Commission
staff, NASD is filing SR-NASD-2005-015 for immediate effectiveness,
and is not filing the question bank for Commission review. See
letter to Alden S. Adkins, Senior Vice President and General
Counsel, NASD Regulation, from Belinda Blaine, Associate Director,
Division of Market Regulation, SEC, dated July 24, 2000. The
question bank is available for Commission review.
---------------------------------------------------------------------------
The revised study outline is available at NASD and at the
Commission. However, NASD has omitted the Series 55 selection
specifications from this filing and has submitted the specifications
under separate cover to the Commission with a request for confidential
treatment pursuant to Rule 24b-2 under the Act.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 240.24b-2.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD included statements
concerning the purpose of and basis for its proposal and discussed any
comments it received regarding the proposal. 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
Pursuant to section 15A(g)(3) of the Act,\7\ which requires NASD to
prescribe
[[Page 8865]]
standards of training, experience, and competence for persons
associated with NASD members, NASD has developed examinations, and
administers examinations developed by other self-regulatory
organizations, that are designed to establish that persons associated
with NASD members have attained specified levels of competence and
knowledge. NASD periodically reviews the content of the examinations to
determine whether revisions are necessary or appropriate in view of
changes pertaining to the subject matter covered by the examinations.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(g)(3).
---------------------------------------------------------------------------
The Series 55 examination is required, with certain limited
exceptions, for registered representatives who are engaged in
proprietary trading, the execution of transactions on an agency basis,
or the direct supervision of such activities, with respect to
transactions in equity, preferred or convertible debt securities
effected otherwise than on a securities exchange. There is an exception
from the requirement for the Series 55 examination for any person
associated with a member whose trading activities are conducted
principally on behalf of an investment company that is registered with
the Commission pursuant to the Investment Company Act of 1940 \8\ and
that controls, is controlled by, or is under common control with the
member.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 80a-1 et seq.
---------------------------------------------------------------------------
A committee of industry representatives, together with NASD staff,
recently undertook a review of the Series 55 examination program. As a
result of this review, NASD is proposing revisions to the section on
The Nasdaq Stock Market, Inc. (``NASDAQ'') Automated Execution and
Trading Systems in the study outline to better reflect the importance
of the NASDAQ Market Center--Execution Service (SuperMontage). NASD
also is proposing revisions to the study outline to remove certain
portions (such as SEC Rules 11Ac1-7 \9\ and 17a-4,\10\ Overallotments
(Greenshoe), Tender Offers, and NASD Rule 11810 (Buying-In)) that
relate more to a firm's sales practice or operations department than to
the firms' NASDAQ trading desk. As a result of the revisions, the title
of Section 2 was changed from ``NASDAQ Automated Execution and Trading
Systems'' to ``NASDAQ Display, Execution and Trading Systems.'' NASD is
further proposing revisions to the study outline to reflect the new SEC
short sale requirements.\11\ In addition, the number of questions on
each section of the study outline was modified as follows: NASDAQ and
Over-The-Counter Markets, decreased from 45 to 42 questions; NASDAQ
Display, Execution and Trading Systems, increased from 9 to 15
questions; Trade Reporting Requirements, decreased from 18 to 16
questions; and General Industry Standards, decreased from 28 to 27
questions.
---------------------------------------------------------------------------
\9\ 17 CFR 240.11Ac1-7.
\10\ 17 CFR 240.17a-4.
\11\ Exchange Act Release No. 50103 (July 28, 2004), 69 FR 48008
(August 6, 2004) (S7-23-2003).
---------------------------------------------------------------------------
NASD is proposing similar changes to the corresponding sections of
the Series 55 selection specifications and question bank. The number of
questions on the Series 55 examination will remain at 100, and
candidates will have three hours to complete the exam. Also, each
question will continue to count one point, and each candidate must
correctly answer 70 percent of the questions to receive a passing grade
2. Statutory Basis.
NASD believes that the proposed revisions to the Series 55
examination program are consistent with the provisions of sections
15A(b)(6) \12\ and 15A(g)(3) of the Act,\13\ which authorize NASD to
prescribe standards of training, experience, and competence for persons
associated with NASD members.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78o-3(b)(6).
\13\ 15 U.S.C. 78o-3(g)(3).
---------------------------------------------------------------------------
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, 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 proposed rule change has become effective pursuant to section
19(b)(3)(A)(i) of the Act \14\ and Rule 19b-4(f)(1) thereunder,\15\ in
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 the self-regulatory organization.
NASD proposes to implement the Series 55 examination program no later
than April 29, 2005. NASD will announce the implementation date in a
Notice to Members to be published no later than 60 days after SEC
Notice of this filing.
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\14\ 15 U.S.C. 78s(b)(3)(A)(i).
\15\ 17 CFR 240.19b-4(f)(1).
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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 rule-comments@sec.gov. Please include
File Number SR-NASD-2005-015 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-2005-015. 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 the NASD. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You
[[Page 8866]]
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-NASD-2005-015
and should be submitted on or before March 16, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-737 Filed 2-22-05; 8:45 am]
BILLING CODE 8010-01-P
