Self-Regulatory Organizations; National Stock Exchange; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Liquidity Provider Rebate and Fee Program, 34805-34806 [E5-3080]

Download as PDF Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51805; File No. SR–NSX– 2005–05] Self-Regulatory Organizations; National Stock Exchange; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Liquidity Provider Rebate and Fee Program June 8, 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 May 26, 2005, the National Stock Exchange (‘‘NSX’’ or ‘‘Exchange’’) 3 filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 4 and Rule 19b–4(f)(6) thereunder,5 which renders the proposed rule change effective upon filing with the Commission.6 The Commission is publishing this notice to solicit comments on the proposed rule change. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange established a liquidity provider rebate and fee pilot program (‘‘Program’’) in SR–CSE–2002–16.7 The Program is currently in effect and is scheduled to expire June 30, 2005.8 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 The Exchange was formerly known as The Cincinnati Stock Exchange or ‘‘CSE’’. See Securities Exchange Act Release No. 48774 (November 12, 2003), 68 FR 65332 (November 19, 2003) (SR–CSE– 2003–12). 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(6). 6 The Exchange provided the Commission with written notice of its intention to file the proposed rule change on May 20, 2005. The Commission received the Exchange’s submission, and asked the Exchange to file the instant proposed rule change, pursuant to Rule 19b–4(f)(6) under the Act. 17 CFR 240.19–4(f)(6). 7 Securities Exchange Act Release No. 46848 (November 19, 2002), 67 FR 70793 (November 26, 2002) (‘‘Original Pilot’’). 8 The Program was originally set to expire on March 31, 2003. It has been extended four times, with the most recent extension due to expire on June 30, 2005. See Securities Exchange Act Release Nos. 47596 (March 28, 2003), 68 FR 16594 (April 4, 2003)(SR–CSE–2003–03)(extending the pilot until September 30, 2003); 48584 (October 2, 2003), 68 FR 58368 (October 9, 2003)(SR–CSE–2003– 13)(extending the pilot until December 31, 2003); 48891 (December 8, 2003), 68 FR 69738 (December 15, 2003) (SR–CSE–2003–14)(extending the pilot until June 30, 2004); and 49792 (June 2, 2004), 69 FR 32389 (June 9, 2004)(SR–NSX–2004– 05)(extending the pilot until June 30, 2005). 2 17 VerDate jul<14>2003 17:57 Jun 14, 2005 Jkt 205001 With the instant proposed rule change, the Exchange extends the Program through June 30, 2006. The Exchange is making no substantive changes to the Program, other than extending its operation through June 30, 2006. The text of the proposed rule change is available on the NSX’s Web site (https://www.nsx.com), at the NSX’s principal office, and at the Commission’s Public Reference Room. 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 Exchange 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 Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. 34805 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) of the Act 12 in general, and furthers the objectives of Section 6(b)(5) 13 in particular, in that it is designed to promote just and equitable principles of trade and to remove impediments to and perfect the mechanism of a free and open market and a national market system and, generally, in that it protects investors and the public interest. The Exchange believes that the proposed rule change is also consistent with Section 6(b)(4) of the Act,14 in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Exchange members by crediting members on a pro rata basis. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any inappropriate burden on competition. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others 1. Purpose No written comments were either solicited or received. In SR–CSE–2002–16,9 the Exchange established the Program, which provides a transaction credit for liquidity providers that is paid by liquidity takers on each intra-Exchange execution 10 in Nasdaq securities. To establish the Program, the Exchange amended Exchange Rule 11.10A(g)(1) by adding subparagraph (B) to charge the liquidity taker (i.e., the party executing against a previously displayed quote/ order) $0.004 per share. The Exchange then passes on to the liquidity provider (i.e., the party providing the displayed quote/order) $0.003 per share, allowing the Exchange to retain $0.001 per share. With the instant proposed rule change, the Exchange is extending the Program through June 30, 2006.11 The Exchange is making no other changes to the Program as it currently operates. Original Pilot, supra note 7. ‘‘intra-Exchange execution’’ (referred to in the original filing as an ‘‘intra-CSE execution’’) is any transaction that is executed on the Exchange for which the executing member on the buy-side of the transaction differs from the executing member on the sell-side of the transaction. 11 The Exchange understands that the Commission’s Regulation NMS (‘‘Reg NMS’’) may have an impact on the Program. Accordingly, the Exchange will undertake to work with the Commission to ensure that the Program would be consistent with the rules and regulations contained in Reg NMS when they become effective. PO 00000 9 See 10 An Frm 00065 Fmt 4703 Sfmt 4703 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) by its terms does not become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) 15 of the Act and Rule 19b–4(f)(6) thereunder.16 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. 12 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 14 15 U.S.C. 78f(b)(4). 15 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b-4(f)(6). 13 15 E:\FR\FM\15JNN1.SGM 15JNN1 34806 Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Notices 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–NSX–2005–05 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–NSX–2005–05. 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 Exchange. 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–NSX–2005–05 and should be submitted on or before July 6, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–3080 Filed 6–14–05; 8:45 am] BILLING CODE 8010–01–P 17 17 CFR 200.30–3(a)(12). VerDate jul<14>2003 17:57 Jun 14, 2005 Jkt 205001 DEPARTMENT OF STATE [Public Notice 5107] Determination Related to the Participation of the Magen David Adom Society of Israel in the Activities of the International Red Cross and Red Crescent Movement Pursuant to the requirements contained in the FY 2005 Consolidated Appropriations Act (Division D, Pub. L. 108–447), under the heading of Migration and Refugee Assistance, I hereby determine that the Magen David Adom Society of Israel is not being denied participation in the activities of the International Red Cross and Red Crescent Movement. This Determination shall be published in the Federal Register, and copies shall be provided to the appropriate committees of the Congress. Dated: June 8, 2005. Condoleeza Rice, Secretary of State, Department of State. [FR Doc. 05–11891 Filed 6–14–05; 8:45 am] BILLING CODE 4710–33–P DEPARTMENT OF STATE [Public Notice 5072] Advisory Committee on Internatioinal Economic Policy; Notice of Open Meeting The Advisory Committee on International Economic Policy (ACIEP) will meet from 1:30 p.m. to 4:30 p.m. on Thursday, July 14, 2005, in Room 1107, U.S. Department of State, 2201 C Street NW., Washington, DC. The meeting will be hosted by Assistant Secretary of State for Economic and Business Affairs E. Anthony Wayne and Committee Chairman R. Michael Gadbaw. Topics for the meeting are (1) Recent developments in U.S.-European cooperation, (2) the Security and Prosperity Partnership, and (3) U.S.Russia economic relations. The ACIEP serves the U.S. Government in a solely advisory capacity concerning issues and problems in international economic policy. This meeting is open to the public as seating capacity allows. Entry to the building is controlled and will be facilitated by advance arrangements. Members of the public planning to attend should provide, by July 11, their name, professional affiliation, social security number (or other identification, such as driver’s license), date of birth, and citizenship to Gwendolyn Jackson by fax (202) 647–5936, e-mail PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 (jacksongl@state.gov), or telephone (202) 647–0847. For additional information, contact David Freudenwald, Office of Economic Policy and Public Diplomacy, Bureau of Economic and Business Affairs, at (202) 647–2231 or freudenwalddj@state.gov. Dated: June 7, 2005. Daniel Clune, Office Director, Office of Economic Policy Analysis and Public Diplomacy, Department of State. [FR Doc. 05–11819 Filed 6–14–05; 8:45 am] BILLING CODE 4710–07–P DEPARTMENT OF STATE [Public Notice 5097] Shipping Coordinating Committee; Notice of Meeting The Shipping Coordinating Committee (SHC) will conduct an open meeting at 9:30 a.m. on Monday, June 27, 2005, in Room 2415 of the United States Coast Guard Headquarters Building, 2100 2nd Street, SW., Washington, DC 20593–0001. The primary purpose of the meeting is to prepare for the 53rd Session of the International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC) to be held at IMO Headquarters in London, England from July 18th to 22nd, 2005. The primary matters to be considered include: —Harmful aquatic organisms in ballast water; —Recycling of ships; —Prevention of air pollution from ships; —Consideration and adoption of amendments to mandatory instruments; —Interpretation and amendments of MARPOL 73/78 and related instruments; —Implementation of the International Convention on Oil Pollution Preparedness, Response and Cooperation (OPRC) Convention and the OPRC-Hazardous Noxious Substance (OPRC–HNS) Protocol and relevant conference resolutions; —Identification and protection of Special Areas and Particularly Sensitive Sea Areas; —Inadequacy of reception facilities; —Voluntary IMO Member State Audit Scheme —Follow-up to the revised MARPOL Annex I and Annex II; —Harmful anti-fouling systems for ships; —Promotion of implementation and enforcement of MARPOL 73/78 and related instruments; E:\FR\FM\15JNN1.SGM 15JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 114 (Wednesday, June 15, 2005)]
[Notices]
[Pages 34805-34806]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3080]



[[Page 34805]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51805; File No. SR-NSX-2005-05]


Self-Regulatory Organizations; National Stock Exchange; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Extend 
the Liquidity Provider Rebate and Fee Program

June 8, 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 May 26, 2005, the National Stock Exchange (``NSX'' or ``Exchange'') 
\3\ filed with the Securities and Exchange Commission (``Commission'') 
the proposed rule change as described in Items I, II, and III below, 
which Items have been prepared by the Exchange. The Exchange filed the 
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \4\ and 
Rule 19b-4(f)(6) thereunder,\5\ which renders the proposed rule change 
effective upon filing with the Commission.\6\ The Commission is 
publishing this notice to solicit comments on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Exchange was formerly known as The Cincinnati Stock 
Exchange or ``CSE''. See Securities Exchange Act Release No. 48774 
(November 12, 2003), 68 FR 65332 (November 19, 2003) (SR-CSE-2003-
12).
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
    \6\ The Exchange provided the Commission with written notice of 
its intention to file the proposed rule change on May 20, 2005. The 
Commission received the Exchange's submission, and asked the 
Exchange to file the instant proposed rule change, pursuant to Rule 
19b-4(f)(6) under the Act. 17 CFR 240.19-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange established a liquidity provider rebate and fee pilot 
program (``Program'') in SR-CSE-2002-16.\7\ The Program is currently in 
effect and is scheduled to expire June 30, 2005.\8\ With the instant 
proposed rule change, the Exchange extends the Program through June 30, 
2006. The Exchange is making no substantive changes to the Program, 
other than extending its operation through June 30, 2006. The text of 
the proposed rule change is available on the NSX's Web site (https://
www.nsx.com), at the NSX's principal office, and at the Commission's 
Public Reference Room.
---------------------------------------------------------------------------

    \7\ Securities Exchange Act Release No. 46848 (November 19, 
2002), 67 FR 70793 (November 26, 2002) (``Original Pilot'').
    \8\ The Program was originally set to expire on March 31, 2003. 
It has been extended four times, with the most recent extension due 
to expire on June 30, 2005. See Securities Exchange Act Release Nos. 
47596 (March 28, 2003), 68 FR 16594 (April 4, 2003)(SR-CSE-2003-
03)(extending the pilot until September 30, 2003); 48584 (October 2, 
2003), 68 FR 58368 (October 9, 2003)(SR-CSE-2003-13)(extending the 
pilot until December 31, 2003); 48891 (December 8, 2003), 68 FR 
69738 (December 15, 2003) (SR-CSE-2003-14)(extending the pilot until 
June 30, 2004); and 49792 (June 2, 2004), 69 FR 32389 (June 9, 
2004)(SR-NSX-2004-05)(extending the pilot until June 30, 2005).
---------------------------------------------------------------------------

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 Exchange 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 Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In SR-CSE-2002-16,\9\ the Exchange established the Program, which 
provides a transaction credit for liquidity providers that is paid by 
liquidity takers on each intra-Exchange execution \10\ in Nasdaq 
securities. To establish the Program, the Exchange amended Exchange 
Rule 11.10A(g)(1) by adding subparagraph (B) to charge the liquidity 
taker (i.e., the party executing against a previously displayed quote/
order) $0.004 per share. The Exchange then passes on to the liquidity 
provider (i.e., the party providing the displayed quote/order) $0.003 
per share, allowing the Exchange to retain $0.001 per share. With the 
instant proposed rule change, the Exchange is extending the Program 
through June 30, 2006.\11\ The Exchange is making no other changes to 
the Program as it currently operates.
---------------------------------------------------------------------------

    \9\ See Original Pilot, supra note 7.
    \10\ An ``intra-Exchange execution'' (referred to in the 
original filing as an ``intra-CSE execution'') is any transaction 
that is executed on the Exchange for which the executing member on 
the buy-side of the transaction differs from the executing member on 
the sell-side of the transaction.
    \11\ The Exchange understands that the Commission's Regulation 
NMS (``Reg NMS'') may have an impact on the Program. Accordingly, 
the Exchange will undertake to work with the Commission to ensure 
that the Program would be consistent with the rules and regulations 
contained in Reg NMS when they become effective.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \12\ in general, and furthers the objectives of 
Section 6(b)(5) \13\ in particular, in that it is designed to promote 
just and equitable principles of trade and to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system and, generally, in that it protects investors and the public 
interest. The Exchange believes that the proposed rule change is also 
consistent with Section 6(b)(4) of the Act,\14\ in that it is designed 
to provide for the equitable allocation of reasonable dues, fees, and 
other charges among Exchange members by crediting members on a pro rata 
basis.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) \15\ of the Act and Rule 19b-4(f)(6) 
thereunder.\16\
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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.

[[Page 34806]]

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-NSX-2005-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-9303.
    All submissions should refer to File Number SR-NSX-2005-05. 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 Exchange. 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-NSX-2005-05 and should be submitted on or before July 6, 
2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-3080 Filed 6-14-05; 8:45 am]
BILLING CODE 8010-01-P

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