Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Modifications to the Nasdaq Opening Process for Nasdaq-Listed Stocks, 14740-14742 [E5-1256]
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14740
Federal Register / Vol. 70, No. 55 / Wednesday, March 23, 2005 / Notices
the fair and orderly operation of The
Nasdaq Stock Market during the preopening trading period. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest because it will allow
Nasdaq to begin disseminating the
Order Imbalance Indicator at the earlier
9:25 a.m. time immediately, thereby
providing increased information and
greater transparency to the market. For
this reason, the Commission designates
the proposal to be effective and
operative upon filing with the
Commission.10
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–2005–029 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–2005–029. 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
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NASD–2005–029 and
should be submitted on or before April
13, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1255 Filed 3–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51386; File No. SR–NASD–
2005–031]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding Modifications
to the Nasdaq Opening Process for
Nasdaq-Listed Stocks
March 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 March 14,
2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
items I and II below, which Items have
been prepared by Nasdaq. Nasdaq has
designated the proposed rule change as
‘‘non-controversial’’ under section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(6) thereunder,4 which renders the
proposed rule change effective upon
10 For purposes only of waiving the 30-day
operative delay of the proposed rule change, the
Commission considered the proposed rule’s impact
on efficiency, competition, and capital formation.
15 U.S.C. 78c(f).
VerDate jul<14>2003
16:27 Mar 22, 2005
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11 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).
4 17 CFR 240.19b–4(f)(6).
1 15
Frm 00106
Fmt 4703
Sfmt 4703
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
Nasdaq is filing a proposed rule
change to modify NASD Rule 4704(d)(1)
which governs the dissemination of the
Order Imbalance Indicator prior to the
Nasdaq Opening Cross. The text of the
proposed rule change is set forth below.
Proposed new language is in italics;
proposed deletions are in [brackets].5
*
*
*
*
*
Rule 4704 Opening Process for
Nasdaq-Listed Securities
(a)–(c) No Change.
(d) Processing of Nasdaq Opening
Cross. For certain Nasdaq-listed
securities designated by Nasdaq, the
Nasdaq Opening Cross shall occur at
9:30, and regular hours trading shall
commence when the Nasdaq Opening
Cross concludes.
(1) Beginning at 9:25:30 a.m., Nasdaq
shall disseminate by electronic means
an Order Imbalance Indicator every 15
seconds until 9:28:20[9], and then every
5 seconds until market open. The Order
Imbalance Indicator shall contain the
following real time information:
(A)–(E) No Change.
(2)–(4) No Change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq 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
Nasdaq is proposing to modify NASD
Rule 4704(d)(1) which governs the
dissemination of the Order Imbalance
Indicator prior to the Nasdaq Opening
5 The proposed rule change is marked to show
changes from the rule text appearing in the NASD
Manual available at https://www.nasd.com as
amended by SR–NASD–2005–029 (March 4, 2005).
E:\FR\FM\23MRN1.SGM
23MRN1
Federal Register / Vol. 70, No. 55 / Wednesday, March 23, 2005 / Notices
Cross. NASD Rule 4704(d)(1) currently
provides that Nasdaq will disseminate
the Order Imbalance Indicator every 15
seconds beginning at 9:25 a.m. and
every 5 seconds beginning at 9:29 a.m.
until market open. The Order Imbalance
Indicator informs market participants
about the expected outcome of the
Nasdaq Opening Cross and enables
them to determine how to participate in
it. Nasdaq recently determined that
disseminating the Order Imbalance
Indicator beginning at 9:25 a.m. will
enhance market transparency and
encourage increased order interaction
during the Nasdaq Opening Cross.
Currently, Nasdaq’s system opens all
quotes and orders at 9:25 a.m via an
unlocking/uncrossing process described
in Rule 4704(b). The processing of the
unlocking/uncrossing algorithm takes
several seconds to complete. Under the
recently published rule change,6 the
first dissemination of the Order
Imbalance Indicator at 9:25 a.m. could
occur prior to the completion of the
unlocking/uncrossing algorithm. This
would defeat the transparency that
Nasdaq continually strives to create.
Accordingly, Nasdaq is proposing to
disseminate the Order Imbalance
Indicator at 9:25:30 a.m. rather than 9:25
a.m. as recently proposed. In addition,
Nasdaq is proposing to increase
transparency by disseminating the
Order Imbalance Indicator every five
seconds beginning at 9:28:20 a.m. rather
than at 9:29 a.m.
There would be no changes in the
entry, display, processing, or execution
of individual orders.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of section 15A of the Act,7 in
general, and with section 15A(b)(6) of
the Act,8 in particular, in that section
15A(b)(6) requires, among other things,
that a national securities association’s
rules be designed to protect investors
and the public interest. Nasdaq believes
that its current proposal is consistent
with the NASD’s obligations under
these provisions of the Act because it
would result in a more orderly opening
for all Nasdaq stocks. The proposed rule
change would create a fair, orderly, and
unified opening for Nasdaq stocks,
prevent the occurrence of locked and
crossed markets in halted securities, and
preserve price discovery and
transparency that is vital to an effective
opening of trading.
6 See
SR–NASD–2005–029 (March 4, 2005).
U.S.C. 78o–3.
8 15 U.S.C. 78o–3(b)(6).
7 15
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16:27 Mar 22, 2005
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14741
B. Self-Regulatory Organization’s
Statement on Burden on Competition
or otherwise in furtherance of the
purposes of the Act.
Nasdaq does not believe that the
proposed rule change would result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
IV. Solicitation of Comments
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Nasdaq neither solicited nor received
written comments with respect to the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, if consistent with the
protection of investors and the public
interest, it has become effective
pursuant to section 19(b)(3)(A) of the
Act 9 and Rule 19b–4(f)(6) thereunder.10
Nasdaq has requested that the
Commission waive the five-day prefiling notice requirement and the 30-day
operative delay for ‘‘non-controversial’’
proposals, based upon a representation
that the proposal is of the utmost
importance to the fair and orderly
operation of The Nasdaq Stock Market
during the pre-opening trading period.
The Commission believes that waiver of
the five-day pre-filing requirement and
the 30-day operative delay is consistent
with the protection of investors and the
public interest because it would allow
Nasdaq immediately to implement the
proposed rule change which should
improve transparency in the preopening trading period. For this reason,
the Commission designates the proposal
to be effective and operative upon filing
with the Commission.11
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,
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 For purposes only of waiving the 30-day
operative delay of the proposed rule change, the
Commission considered the proposed rule’s impact
on efficiency, competition, and capital formation.
15 U.S.C. 78c(f).
PO 00000
9 15
10 17
Frm 00107
Fmt 4703
Sfmt 4703
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–2005–031 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–2005–031. 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
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NASD–2005–031 and
should be submitted on or before April
13, 2005.
E:\FR\FM\23MRN1.SGM
23MRN1
14742
Federal Register / Vol. 70, No. 55 / Wednesday, March 23, 2005 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1256 Filed 3–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51372; File No. SR–NYSE–
2004–62]
Self-Regulatory Organizations; New
York Stock Exchange Inc.; Notice of
Filing of Proposed Rule Change To
Eliminate Rule 496 and To Amend the
Listed Company Manual Relating to
Transfer Agents
March 15, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
October 29, 2004, the New York Stock
Exchange Inc. (‘‘NYSE’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on December 3,
2004, and February 9, 2005, amended
the proposed rule change as described
in items I, II, and III below, which items
have been prepared primarily by the
NYSE. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The NYSE proposes to: (i) Eliminate
Rule 496; (ii) amend the Listed
Company Manual (‘‘LCM’’) to remove
references to the current requirement of
Rule 496 that transfer agents for listed
companies maintain an office or an
agent in Manhattan below Chambers
Street; (iii) incorporate in the LCM
certain other requirements currently in
Rule 496; and (iv) codify exceptions to
the transfer agent provisions that the
NYSE has historically applied.
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
NYSE 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 NYSE has
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
16:27 Mar 22, 2005
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The NYSE proposes to eliminate Rule
496 and proposes to amend its LCM to
retain and to continue to impose certain
current significant requirements of Rule
496 with respect to entities acting as
transfer agents for listed companies. The
NYSE believes it is appropriate that the
transfer agent requirements be set forth
solely in the LCM due to the fact that
its rules are generally applicable to
members rather than listed companies.
In addition, the current requirements of
Rule 496 are referred to, and to some
extent, repeated in various sections of
the LCM. Accordingly, the NYSE
believes that the transfer agent
requirements are more properly
contained in the LCM.
Rule 496 requires, among other
things, that transfer agents for listed
companies maintain an office or obtain
an agent located south of Chambers
Street in the Borough of Manhattan, City
of New York, where securities can be
delivered in person for registration of
transfer and can be picked up after
completion of such registration (often
referred to in the industry as a ‘‘drop’’).
The current requirement was
implemented when most securities
traded on the NYSE were held in
certificated form and were settled with
physical delivery. The transfer agents’
presence in lower Manhattan, where the
brokers were also concentrated,
facilitated the speedy settlement of
transactions and processing of securities
transfers. However, most securities are
now held in ‘‘street name’’ at The
Depository Trust Company (‘‘DTC’’), a
securities depository registered as
clearing agency under section 17A of
the Exchange Act,3 and transfers of such
securities occur through automated
book-entry systems at DTC without the
need for transfer of physical certificates.
As a result, very few transfers are
facilitated any longer by the drop in
lower Manhattan. The NYSE believes
that marketplace participants, including
securityholders, would not be harmed
by elimination of the drop requirement
in Rule 496.
Rule 496 also requires transfer agents
to record the transfer of securities
received at the transfer agent’s drop
2 The Commission has modified the text of the
summaries prepared by the NYSE.
3 15 U.S.C. 78q–1(b).
12 17
VerDate jul<14>2003
prepared summaries, set forth in
sections (A), (B), and (C) below, of the
most significant aspects of these
statements.2
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before the close of business on a record
date as being transferred on the record
date in order to establish the transferee’s
rights on the record date. As revised, the
LCM will provide the same protection
for securities mailed by the close of
business on a record date by a registered
clearing agency (i.e., DTC). Because the
vast majority of securities are now held
in ‘‘street name,’’ the NYSE believes that
securityholders will not be
disadvantaged by providing this record
date protection only to registered
clearing agencies.
Rule 496 also requires transfer agents
to meet certain capital and insurance
standards. Currently under the rule,
transfer agents are required to (i) have
capital, surplus (both capital and
earned), undivided profits, and capital
reserves aggregating at least $10,000,000
and (ii) maintain blanket bond
insurance coverage of at least
$25,000,000 to protect securities while
in transit or being processed. The
proposed revisions to the LCM will
retain the capital and insurance
requirements of current Rule 496 and
will codify several long-standing
policies and practices of the NYSE by
providing for the qualification of certain
transfer agents that do not otherwise
meet the capital and insurance
requirements of Rule 496. Accordingly,
the LCM will specify that a bank, trust
company, or other qualified
organization acting as transfer agent
may:
1. Act in a dual capacity as transfer
agent/co-transfer agent and registrar if
(i) a majority of its equity is owned by
an entity that meets the standard capital
requirements, (ii) its parent guarantees
the subsidiary’s performance, and (iii)
the subsidiary maintains the
$25,000,000 blanket bond insurance
coverage or the parent maintains the
coverage for the benefit of the
subsidiary;
2. Act in dual capacity as transfer
agent/co-transfer agent and registrar if it
(i) has capital of at least $2,000,000 and
errors and omissions insurance which,
taken together with its capital, equals at
least $10,000,000 and (ii) maintains the
standard $25,000,000 blanket bond
insurance coverage; or
3. Act as co-transfer agent or coregistrar (but not in a dual capacity) for
securities listed on the NYSE if it has
capital equal to at least $2,000,000
without maintaining the $25,000,000
blanket bond insurance coverage.
Additionally a listed company may
act as its own transfer agent provided
that it complies with all the
requirements applicable to transfer
agents not affiliated with the listed
company apart from the capital and
E:\FR\FM\23MRN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 55 (Wednesday, March 23, 2005)]
[Notices]
[Pages 14740-14742]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1256]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51386; File No. SR-NASD-2005-031]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Regarding Modifications to the Nasdaq Opening Process for
Nasdaq-Listed Stocks
March 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 March 14, 2005, the National Association of Securities Dealers, Inc.
(``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in items I and
II below, which Items have been prepared by Nasdaq. Nasdaq has
designated the proposed rule change as ``non-controversial'' under
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders the proposed rule change 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq is filing a proposed rule change to modify NASD Rule
4704(d)(1) which governs the dissemination of the Order Imbalance
Indicator prior to the Nasdaq Opening Cross. The text of the proposed
rule change is set forth below. Proposed new language is in italics;
proposed deletions are in [brackets].\5\
---------------------------------------------------------------------------
\5\ The proposed rule change is marked to show changes from the
rule text appearing in the NASD Manual available at https://
www.nasd.com as amended by SR-NASD-2005-029 (March 4, 2005).
---------------------------------------------------------------------------
* * * * *
Rule 4704 Opening Process for Nasdaq-Listed Securities
(a)-(c) No Change.
(d) Processing of Nasdaq Opening Cross. For certain Nasdaq-listed
securities designated by Nasdaq, the Nasdaq Opening Cross shall occur
at 9:30, and regular hours trading shall commence when the Nasdaq
Opening Cross concludes.
(1) Beginning at 9:25:30 a.m., Nasdaq shall disseminate by
electronic means an Order Imbalance Indicator every 15 seconds until
9:28:20[9], and then every 5 seconds until market open. The Order
Imbalance Indicator shall contain the following real time information:
(A)-(E) No Change.
(2)-(4) No Change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Nasdaq 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. Nasdaq 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
Nasdaq is proposing to modify NASD Rule 4704(d)(1) which governs
the dissemination of the Order Imbalance Indicator prior to the Nasdaq
Opening
[[Page 14741]]
Cross. NASD Rule 4704(d)(1) currently provides that Nasdaq will
disseminate the Order Imbalance Indicator every 15 seconds beginning at
9:25 a.m. and every 5 seconds beginning at 9:29 a.m. until market open.
The Order Imbalance Indicator informs market participants about the
expected outcome of the Nasdaq Opening Cross and enables them to
determine how to participate in it. Nasdaq recently determined that
disseminating the Order Imbalance Indicator beginning at 9:25 a.m. will
enhance market transparency and encourage increased order interaction
during the Nasdaq Opening Cross.
Currently, Nasdaq's system opens all quotes and orders at 9:25 a.m
via an unlocking/uncrossing process described in Rule 4704(b). The
processing of the unlocking/uncrossing algorithm takes several seconds
to complete. Under the recently published rule change,\6\ the first
dissemination of the Order Imbalance Indicator at 9:25 a.m. could occur
prior to the completion of the unlocking/uncrossing algorithm. This
would defeat the transparency that Nasdaq continually strives to
create. Accordingly, Nasdaq is proposing to disseminate the Order
Imbalance Indicator at 9:25:30 a.m. rather than 9:25 a.m. as recently
proposed. In addition, Nasdaq is proposing to increase transparency by
disseminating the Order Imbalance Indicator every five seconds
beginning at 9:28:20 a.m. rather than at 9:29 a.m.
---------------------------------------------------------------------------
\6\ See SR-NASD-2005-029 (March 4, 2005).
---------------------------------------------------------------------------
There would be no changes in the entry, display, processing, or
execution of individual orders.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of section 15A of the Act,\7\ in general, and with
section 15A(b)(6) of the Act,\8\ in particular, in that section
15A(b)(6) requires, among other things, that a national securities
association's rules be designed to protect investors and the public
interest. Nasdaq believes that its current proposal is consistent with
the NASD's obligations under these provisions of the Act because it
would result in a more orderly opening for all Nasdaq stocks. The
proposed rule change would create a fair, orderly, and unified opening
for Nasdaq stocks, prevent the occurrence of locked and crossed markets
in halted securities, and preserve price discovery and transparency
that is vital to an effective opening of trading.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3.
\8\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change would 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
Nasdaq neither solicited nor received written comments with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest, it
has become effective pursuant to section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\ Nasdaq has requested that the
Commission waive the five-day pre-filing notice requirement and the 30-
day operative delay for ``non-controversial'' proposals, based upon a
representation that the proposal is of the utmost importance to the
fair and orderly operation of The Nasdaq Stock Market during the pre-
opening trading period. The Commission believes that waiver of the
five-day pre-filing requirement and the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would allow Nasdaq immediately to implement the proposed
rule change which should improve transparency in the pre-opening
trading period. For this reason, the Commission designates the proposal
to be effective and operative upon filing with the Commission.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ For purposes only of waiving the 30-day operative delay of
the proposed rule change, the Commission considered the proposed
rule's impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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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-2005-031 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-2005-031. 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 should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASD-2005-031 and should be submitted on or before April
13, 2005.
[[Page 14742]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1256 Filed 3-22-05; 8:45 am]
BILLING CODE 8010-01-P
