Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay Implementation Date of Revisions to the Series 4 Examination Program, 28970-28972 [E5-2505]
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28970
Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Notices
On March 21, 2005 and March 30, 2005,
the Exchange filed Amendment Nos. 1
and 2, respectively, to the proposal. The
proposed rule change, as amended, was
published for comment in the Federal
Register on April 7, 2005.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change, as amended.
The Exchange is rolling out a new,
automated functionality, CHXpress,
which, according to the Exchange, is
designed to provide additional
opportunities for the Exchange’s
participants to seek and receive
liquidity through automated executions
of orders at the Exchange.4 With a few
exceptions, CHXpress orders will be
executed immediately and
automatically against same or betterpriced orders in the specialist’s book, or
against the specialist’s quote (when
CHXpress is available).5 If a CHXpress
order cannot be immediately executed,
it will be placed in the specialist’s book
for display or later execution.6 The
handling of CHXpress orders within the
Exchange’s systems is entirely
automatic. CHX specialists do not
provide CHXpress orders with the
execution guarantees that might
otherwise be available to agency limit
orders,7 and CHX specialists also would
not be required to seek liquidity for
CHXpress orders in other markets. This
proposal clarifies that a CHX specialist
would not be permitted to charge a
commission in connection with the
execution of a CHXpress order.
The Commission has reviewed
carefully the proposed rule change, as
amended, and finds that it is consistent
with the requirements of Section 6 of
the Act 8 and the rules and regulations
thereunder applicable to a national
securities exchange.9 In particular, the
3 See
Securities Exchange Act Release No. 51465
(April 1, 2005), 70 FR 17743.
4 See Securities Exchange Act Release No. 50481
(September 30, 2004); 69 FR 60197 (October 7,
2004) (SR–CHX–2004–12).
5 See CHX Article XX, Rule 37(b)(11)(C).
6 A CHXpress order will be instantaneously and
automatically displayed when it constitutes the best
bid or offer in the CHX book. See CHX Article XX,
Rule 37(b)(11)(D).
7 See CHX Article XX, Rule 37(b)(11)(E)–(F).
8 15 U.S.C. 78f.
9 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f). The Commission notes that it
previously approved similar proposed rule changes
filed by the New York Stock Exchange, Inc.
(‘‘NYSE’’) to prohibit a specialist on the NYSE from
charging ‘‘floor brokerage’’ (i.e., a commission
imposed on exchange floor brokers) for the
execution of an order received by the specialist via
the NYSE’s automated order routing system, known
as SuperDot. See Securities Exchange Act Release
Nos. 42727 (April 27, 2000), 65 FR 26258 (May 5,
2000); 42694 (April 17, 2000), 65 FR 24245 (April
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Jkt 205001
Commission finds that the proposed
rule change is consistent with sections
6(b)(5) and 6(e)(1) of the Act,10 because
it is designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest; and is not designed to
impose any schedule or fix rates of
commissions, allowances, discounts, or
other fees to be charged by its members.
The Commission also believes that the
proposed rule change is consistent with
section 11(A)(a)(1)(C) of the Act,11
which states that it is in the public
interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure, among other things,
economically efficient execution of
securities transactions, and fair
competition among brokers and dealers,
among exchange markets, and between
exchange markets and markets other
than exchange markets.
The Commission believes that the
Exchange’s proposal is consistent with
section 6(e) of the Act.12 Section 6(e) of
the Act 13 was adopted by Congress in
1975 to statutorily prohibit the fixed
minimum commission rate system. As
noted in a report of the House of
Representatives, one of the purposes of
the legislation was to ‘‘reverse the
industry practice of charging fixed rates
of commissions for transactions on the
securities exchanges.’’ 14 The fixed
minimum commission rate system
allowed exchanges to set minimum
commission rates that their members
had to charge their customers, but
allowed members to charge more. CHX’s
proposal, by contrast, does not establish
a minimum commission rate, but
instead prohibits commissions in
circumstances in which the CHX
specialist does not handle the order.
Accordingly, the Commission does not
believe that the Exchange’s proposal to
limit the fees charged by CHX
specialists constitutes fixing
commissions, allowances, discounts, or
other fees for purposes of Section 6(e)(1)
of the Act.15 In addition, the
Commission believes that the
Exchange’s proposal is reasonable
because it prohibits a CHX specialist
from charging a commission for an order
executed without assistance or handling
by the CHX specialist. In this regard, the
Commission notes that it has not viewed
a self-regulatory organization’s limits on
fees that its members may charge, even
when a member acts as agent, as
inconsistent with section 6(e) of the
Act.16 In addition, the Exchange’s limits
on fees that CHX specialists may charge
applies only to members who choose to
be specialists on the Exchange.
Therefore, CHX is not fixing fees
generally; it is merely imposing a
condition, which is consistent with the
Act, on a member’s appointment as a
specialist.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange, and, in particular,
with sections 6(b)(5) and 6(e)(1) of the
Act.17 It is therefore ordered, pursuant
to section 19(b)(2) of the Act,18 that the
proposed rule change (SR–CHX–2005–
04), as amended, is approved.
25, 2000); and 42184 (November 30, 1999), 64 FR
68710 (December 8, 1999). In addition, the
Commission recently approved a proposed rule
change submitted by the Chicago Board Options
Exchange (‘‘CBOE’’) to prohibit Designated Primary
Market Makers (‘‘DPMs’’) from charging a brokerage
commission for an order, or the portion of an order:
(i) For which the DPM was not the executing
broker, which includes any portion of the order that
is automatically executed through a CBOE system;
(ii) that is automatically cancelled; or (iii) that is not
executed, and not cancelled. See Securities
Exchange Act Release No. 51235 (February 22,
2005), 70 FR 9687 (February 28, 2005).
10 15 U.S.C. 78f(b)(5) and 78f(e)(1).
11 15 U.S.C. 78k–1(a)(1)(C).
12 15 U.S.C. 78f(e).
13 Id.
14 H.R. Rep. No. 94–123, 94th Cong., 1st Sess. 42
(1975).
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Delay Implementation
Date of Revisions to the Series 4
Examination Program
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–2504 Filed 5–18–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51688; File No. SR–NASD–
2005–053]
May 12, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
15 15
U.S.C. 78f(e)(1).
U.S.C. 78f(e)(1).
17 15 U.S.C. 78f(b)(5) and 78f(e)(1).
18 15 U.S.C. 78s(b)(2).
19 17 CFR 200.30–3(a)(12).
16 15
E:\FR\FM\19MYN1.SGM
19MYN1
Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Notices
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 18,
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
has designated the proposed rule change
as one constituting a stated policy,
practice, or interpretation with respect
to the meaning, administration, or
enforcement of an existing rule of NASD
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 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 proposes to delay until no later
than November 30, 2005 the
implementation date of the recent
revisions to the Limited Principal—
Registered Options (Series 4)
examination program, including the
study outline and selection
specifications (the ‘‘Series 4
Examination’’). NASD is not proposing
any textual changes to the By-Laws,
Schedules to the By-Laws, or Rules of
NASD.
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 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
On February 9, 2005, NASD filed with
the SEC for immediate effectiveness
revisions to the Series 4 Examination.5
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 5 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
5 See Securities Exchange Act Release No. 51216
(February 16, 2005), 70 FR 8866 (February 23, 2005)
(SR–NASD–2005–025).
The Series 4 Examination is an
industry-wide examination that
qualifies an individual to function as a
Registered Options Principal. The Series
4 Examination is shared by NASD and
the following SROs: The American
Stock Exchange LLC (‘‘Amex’’), the
Chicago Board Options Exchange,
Incorporated, the New York Stock
Exchange, Inc., the Pacific Exchange,
Inc. (‘‘PCX’’), and the Philadelphia
Stock Exchange, Inc. Amex and PCX
filed with the SEC similar revisions to
the Series 4 Examination.6 NASD
originally had proposed to implement
the Series 4 Examination revisions by
no later than April 29, 2005. However,
due to administrative issues, NASD is
proposing to delay until no later than
November 30, 2005, the implementation
date of the revisions. NASD will
announce the revisions to the Series 4
Examination and the implementation
date in a Notice to Members to be
published no later than October 31,
2005.
NASD understands that Amex and
PCX also will file with the SEC similar
proposed rule changes to delay until no
later than November 30, 2005, the
implementation date of the revisions to
the Series 4 Examination.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of sections 15A(b)(6) 7 and 15A(g)(3) of
the Act,8 which authorize NASD to
prescribe standards of training,
experience, and competence for persons
associated with NASD members.
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 9 and Rule 19b–
1 15
2 17
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22:14 May 18, 2005
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6 See Securities Exchange Act Release No. 51688
(May 12, 2005) (SR–Amex–2005–039); SR–PCX–
2005–51.
7 15 U.S.C. 78o–3(b)(6).
8 15 U.S.C. 78o–3(g)(3).
9 15 U.S.C. 78s(b)(3)(A)(i).
PO 00000
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Sfmt 4703
28971
4(f)(1) thereunder,10 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 NASD. NASD proposes
to implement the Series 4 Examination
revisions by no later than November 30,
2005. NASD will announce the
revisions to the Series 4 Examination
and the implementation date in a Notice
to Members to be published no later
than October 31, 2005.
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–2005–053 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–2005–053. 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
10 17
E:\FR\FM\19MYN1.SGM
CFR 240.19b–4(f)(1).
19MYN1
28972
Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Notices
provisions of 5 U.S.C. 552, 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–2005–053 and
should be submitted on or before June
9, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–2505 Filed 5–18–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51693; File No. SR–NASD–
2005–052]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change and
Amendments No. 1 and No. 2 Thereto
Relating to Honorarium for Arbitrators
Deciding Discovery-Related Motions
May 12, 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 the National
Association of Securities Dealers, Inc.
(‘‘NASD’’), through its wholly owned
subsidiary, NASD Dispute Resolution,
Inc. (‘‘NASD Dispute Resolution’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
on April 14, 2005, on April 29, 2005
(Amendment No. 1) and on May 6,
2005, (Amendment No. 2), the proposed
rule change as described in items I, II,
and III below, which items have been
prepared by NASD. 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 Dispute Resolution is
proposing to amend Interpretive
Material (IM) 10104 of the NASD Code
of Arbitration Procedure (‘‘Code’’) to
provide payment to arbitrators for
deciding discovery-related motions
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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22:14 May 18, 2005
Jkt 205001
without a hearing.3 Below is the text of
the proposed rule change.4 Proposed
new language is in italics; proposed
deletions are in brackets.
*
*
*
*
*
IM–10104. Arbitrators’ Honorarium
(a) All persons selected to serve as
arbitrators pursuant to the Association’s
Code of Arbitration Procedure shall be
paid an honorarium for each hearing
session (including a prehearing
conference) in which they participate.
(b) The honorarium shall be $200 for
each hearing session and $75 per day
additional honorarium to the
chairperson of the panel. The
honorarium for a case not requiring a
hearing shall be $125.
(c) The honorarium for travel to a
canceled hearing session shall be $50. If
a hearing session other than a
prehearing conference is adjourned
pursuant to Rule 10319(d), each
arbitrator shall receive an additional
honorarium of $100.
(d) The Director may authorize a
higher or additional honorarium for the
use of a foreign hearing location.
(e) Payment for Deciding DiscoveryRelated Motions Without a Hearing
Session
(1) NASD will pay each arbitrator an
honorarium of $200 to decide a
discovery-related motion without a
hearing session. This paragraph does
not apply to cases administered under
Rules 10203 and 10302.
(2) For purposes of paragraph (e)(1),
a discovery-related motion and any
replies or other correspondence relating
to the motion shall be considered to be
a single motion.
(3) The panel will allocate the cost of
the honoraria under paragraph (e)(1) to
the parties pursuant to Rules 10205(c)
and 10332(c).
*
*
*
*
*
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
3 On March 15, 2005, NASD filed a proposed rule
change to provide written explanations in
arbitration awards upon the request of customers,
or of associated persons in industry controversies.
This proposal amends IM–10104. See SR–NASD–
2005–032.
4 This IM will be renumbered as appropriate
following Commission approval of the pending
revisions to be NASD Code of Arbitration Procedure
for Customer Disputes filed on October 15, 2003,
and amended on January 3, 2005, January 19, 2005,
and april 8, 2005 (SR–NASD–2003–158); and the
NASD Code of Arbitration Procedure for Industry
Disputes filed on January 16, 2004, and amended
on February 26, 2004, January 3, 2005, and April
8, 2005 (SR–NASD–2004–011).
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
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 2002, NASD Dispute Resolution
conducted arbitrator focus groups across
the country. One of the consistently
raised concerns was the amount of time
and effort invested by chairpersons in
reviewing and deciding various
discovery motions, especially in
situations in which the motions are
decided without a hearing (i.e., on the
papers). Also, Dispute Resolution staff
has found that the current lack of
compensation for deciding such
motions has made it more difficult to
recruit current arbitrators to become
chairpersons. Currently, arbitrators are
not compensated for deciding discovery
motions on the papers. Arbitrators are
compensated, however, when they
conduct pre-hearing conferences to hear
argument from parties regarding
discovery motions.
NASD is, therefore, proposing to
adopt a rule to compensate arbitrators in
the amount of $200 (the same amount
that is paid for an arbitrator to
participate in a pre-hearing conference
regarding discovery) to decide discovery
motions on the papers. The new rule
language states that NASD will pay
arbitrators an honorarium of $200 to
decide a discovery-related motion
without a hearing session. For purposes
of this rule, a discovery-related motion
and any replies or other correspondence
relating to the motion will be
considered to be a single motion. If
more than one arbitrator considers a
discovery-related motion, each
arbitrator will receive $200. The panel
will allocate the cost of the honoraria as
part of the eventual arbitration award.
The rule will not apply to simplified
cases administered under Rules 10203
and 10302.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of sections 15A(b)(5) 5 and 15A(b)(6) 6 of
the Act, which require, among other
things, that the NASD’s rules provide
5 15
6 15
E:\FR\FM\19MYN1.SGM
U.S.C. 78o–3(b)(5).
U.S.C. 78o–3(b)(6).
19MYN1
]]>Agencies
[Federal Register Volume 70, Number 96 (Thursday, May 19, 2005)]
[Notices]
[Pages 28970-28972]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2505]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51688; File No. SR-NASD-2005-053]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Delay Implementation Date of Revisions to the Series 4
Examination Program
May 12, 2005.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 28971]]
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 18, 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 has
designated the proposed rule change as one constituting a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of NASD 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 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\ 5 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 proposes to delay until no later than November 30, 2005 the
implementation date of the recent revisions to the Limited Principal--
Registered Options (Series 4) examination program, including the study
outline and selection specifications (the ``Series 4 Examination'').
NASD is not proposing any textual changes to the By-Laws, Schedules to
the By-Laws, or Rules of NASD.
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 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
On February 9, 2005, NASD filed with the SEC for immediate
effectiveness revisions to the Series 4 Examination.\5\ The Series 4
Examination is an industry-wide examination that qualifies an
individual to function as a Registered Options Principal. The Series 4
Examination is shared by NASD and the following SROs: The American
Stock Exchange LLC (``Amex''), the Chicago Board Options Exchange,
Incorporated, the New York Stock Exchange, Inc., the Pacific Exchange,
Inc. (``PCX''), and the Philadelphia Stock Exchange, Inc. Amex and PCX
filed with the SEC similar revisions to the Series 4 Examination.\6\
NASD originally had proposed to implement the Series 4 Examination
revisions by no later than April 29, 2005. However, due to
administrative issues, NASD is proposing to delay until no later than
November 30, 2005, the implementation date of the revisions. NASD will
announce the revisions to the Series 4 Examination and the
implementation date in a Notice to Members to be published no later
than October 31, 2005.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51216 (February 16,
2005), 70 FR 8866 (February 23, 2005) (SR-NASD-2005-025).
\6\ See Securities Exchange Act Release No. 51688 (May 12, 2005)
(SR-Amex-2005-039); SR-PCX-2005-51.
---------------------------------------------------------------------------
NASD understands that Amex and PCX also will file with the SEC
similar proposed rule changes to delay until no later than November 30,
2005, the implementation date of the revisions to the Series 4
Examination.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of sections 15A(b)(6) \7\ and 15A(g)(3) of the Act,\8\ which
authorize NASD to prescribe standards of training, experience, and
competence for persons associated with NASD members.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(b)(6).
\8\ 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 \9\ and Rule 19b-4(f)(1) thereunder,\10\ 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 NASD. NASD proposes to implement the
Series 4 Examination revisions by no later than November 30, 2005. NASD
will announce the revisions to the Series 4 Examination and the
implementation date in a Notice to Members to be published no later
than October 31, 2005.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(i).
\10\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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-2005-053 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-2005-053. 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
[[Page 28972]]
provisions of 5 U.S.C. 552, 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-2005-053 and should be
submitted on or before June 9, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-2505 Filed 5-18-05; 8:45 am]
BILLING CODE 8010-01-P
