Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand Maximum Single Order Share Size Limits in Nasdaq's Brut Facility, 39838-39839 [E5-3621]
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39838
Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3616 Filed 7–8–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51956; File No. SR–NASD–
2005–081]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Expand Maximum
Single Order Share Size Limits in
Nasdaq’s Brut Facility
June 30, 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 June 22,
2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’),
submitted to the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the NASD.
NASD filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 which renders it 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
Nasdaq proposes to expand the single
order total dollar price limit in Nasdaq’s
Brut Facility. The text of the proposed
rule change is below. Proposed new
language is in italics; proposed
deletions are in brackets.
*
*
*
*
*
4903. Order Entry Parameters
(a)–(e) No Change.
(f) Order Size—Any order in whole
shares up to 1,000,099 shares may be
entered into the System, subject to a
dollar volume limitation of
$[2]75,000,000.
*
*
*
*
*
9 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).
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
NASD included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The 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
Nasdaq proposes to expand the
maximum single-order total dollar value
parameter in Nasdaq’s Brut Facility.
Currently, the dollar value of a single
order entered into the Brut system may
not exceed $25,000,000. Nasdaq
proposes to expand that amount to
$75,000,000.
Nasdaq believes that expansion of the
single-order total dollar value amount
will provide additional flexibility for
Brut system users trading more liquid,
higher-priced securities, as well as
facilitating trading in larger dollar
amounts on days of increased market
activity, such as index rebalance and
options expiration days.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with Section 15A of
the Act,4 in general, and with Section
15A(b)(6) of the Act,5 in particular, in
that it is designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to a free
and open market and a national market
system, and, in general, to protect
investors and the public interest.
B.Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C.Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
1 15
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16:03 Jul 08, 2005
4 15
5 15
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U.S.C. 78o–3.
U.S.C. 78o–3(b)(6).
Frm 00124
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has been
filed by NASD as a ‘‘non-controversial’’
rule change pursuant to Section
19(b)(3)(A) of the Act 6 and
subparagraph (f)(6) of Rule 19b–4
thereunder.7 Consequently, because the
foregoing 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 of filing, 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 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. NASD
has requested that the Commission
waive the 30-day pre-operative period,
which would make the proposed rule
operative immediately.
The Commission believes that it is
consistent with the protection of
investors and the public interest to
waive the 30-day pre-operative period
in this case.9 Allowing the rule change
to become operative immediately
should allow Brut system users to take
advantage of additional trading
flexibility without delay. Consequently,
the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6)
thereunder.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
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
8 Rule 19b–4(f)(6) under the Act also requires a
self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule
change, along with a brief description and text of
the proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The NASD complied with this
requirement.
9 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
7 17
E:\FR\FM\11JYN1.SGM
11JYN1
Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices
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
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–3621 Filed 7–8–05; 8:45 am]
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
BILLING CODE 8010–01–P
Electronic Comments
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Extending the Pilot
Relating to Manning PriceImprovement Standards for Decimals
• 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–2005–081 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51953; File No. SR–NASD–
2005–085]
June 30, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 29,
to Jonathan G. Katz, Secretary,
2005, the National Association of
Securities and Exchange Commission,
Securities Dealers, Inc. (‘‘NASD’’) filed
Station Place, 100 F Street, NE.,
with the Securities and Exchange
Washington, DC 20549–9303.
Commission (‘‘Commission’’) the
proposed rule change as described in
All submissions should refer to File
Items I and II below, which Items have
Number SR–NASD–2005–081. This file
been prepared by NASD. NASD has
number should be included on the
subject line if e-mail is used. To help the filed this proposal pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
Commission process and review your
4(f)(6) thereunder,4 which renders the
comments more efficiently, please use
only one method. The Commission will proposal effective upon filing with the
post all comments on the Commission’s Commission. The Commission is
publishing this notice to solicit
Internet Web site (https://www.sec.gov/
comments on the proposed rule change
rules/sro.shtml). Copies of the
from interested persons.
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
Commission, and all written
NASD is proposing to extend through
communications relating to the
December 31, 2005, the current pilot
proposed rule change between the
price-improvement standards for
Commission and any person, other than decimalized securities contained in
those that may be withheld from the
NASD Interpretive Material 2110–2—
public in accordance with the
Trading Ahead of Customer Limit Order
provisions of 5 U.S.C. 552, will be
(‘‘Manning Interpretation’’ or
available for inspection and copying in
‘‘Manning’’). There are no proposed
the Commission’s Public Reference
changes to the rule text of the Manning
Room. Copies of such filing also will be Interpretation.
available for inspection and copying at
II. Self-Regulatory Organization’s
the principal office of the NASD. All
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
In its filing with the Commission,
information from submissions. You
NASD included statements concerning
should submit only information that
you wish to make available publicly. All
12 17 CFR 200.30–3(a)(12).
submissions should refer to File
1 15 U.S.C. 78s(b)(1).
Number SR–NASD–2005–081 and
2 17 CFR 240.19b–4.
should be submitted on or before
3 15 U.S.C. 78s(b)(3)(A).
August 1, 2005.
4 17 CFR 240.19b–4(f)(6).
Paper Comments
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16:03 Jul 08, 2005
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Fmt 4703
Sfmt 4703
39839
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 III 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
NASD’s Manning Interpretation
requires an NASD member firm to
provide a minimum level of price
improvement to an incoming order in a
Nasdaq National Market or SmallCap
security if the firm chooses to trade as
principal with an incoming order at a
price superior to that of the customer
limit order that it currently holds. If the
firm fails to provide the minimum level
of price improvement to the incoming
order, the firm must execute the held
customer limit order. Generally, if a firm
fails to provide the requisite amount of
price improvement and also fails to
execute the held customer limit order, it
is in violation of the Manning
Interpretation. The Commission
originally approved, on a pilot basis,
price-improvement standards for
decimalized securities contained in the
Manning Interpretation on April 6,
2001.5 At that time, NASD added the
following language to IM–2110–2:
For Nasdaq securities authorized for
trading in decimals pursuant to the Decimals
Implementation Plan For the Equities and
Options Markets, the minimum amount of
price improvement necessary in order for a
market maker to execute an incoming order
on a proprietary basis in a security trading in
decimals when holding an unexecuted limit
order in that same security, and not be
required to execute the held limit order, is as
follows:
(1) For customer limit orders priced at or
inside the best inside market displayed in
Nasdaq, the minimum amount of price
improvement required is $0.01; and
(2) For customer limit orders priced
outside the best inside market displayed in
Nasdaq, the market maker must price
improve the incoming order by executing the
incoming order at a price at least equal to the
next superior minimum quotation increment
in Nasdaq (currently $0.01).6
5 See Securities Exchange Act Release No. 44165
(April 6, 2001), 66 FR 19268 (April 13, 2001).
6 Pursuant to the terms of the Decimals
Implementation Plan for the Equities and Options
Markets, the minimum quotation increment for
Nasdaq securities (both National Market and
SmallCap) at the outset of decimal pricing is $0.01.
As such, Nasdaq displays priced quotations to two
places beyond the decimal point (to the penny).
E:\FR\FM\11JYN1.SGM
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11JYN1
]]>Agencies
[Federal Register Volume 70, Number 131 (Monday, July 11, 2005)]
[Notices]
[Pages 39838-39839]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3621]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51956; File No. SR-NASD-2005-081]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Expand Maximum Single Order Share Size Limits in
Nasdaq's Brut Facility
June 30, 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 June 22, 2005, the National Association of Securities Dealers, Inc.
(``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), submitted to the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the NASD. NASD filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\
which renders it 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. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to expand the single order total dollar price limit
in Nasdaq's Brut Facility. The text of the proposed rule change is
below. Proposed new language is in italics; proposed deletions are in
brackets.
* * * * *
4903. Order Entry Parameters
(a)-(e) No Change.
(f) Order Size--Any order in whole shares up to 1,000,099 shares
may be entered into the System, subject to a dollar volume limitation
of $[2]75,000,000.
* * * * *
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 NASD included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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
Nasdaq proposes to expand the maximum single-order total dollar
value parameter in Nasdaq's Brut Facility. Currently, the dollar value
of a single order entered into the Brut system may not exceed
$25,000,000. Nasdaq proposes to expand that amount to $75,000,000.
Nasdaq believes that expansion of the single-order total dollar
value amount will provide additional flexibility for Brut system users
trading more liquid, higher-priced securities, as well as facilitating
trading in larger dollar amounts on days of increased market activity,
such as index rebalance and options expiration days.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with
Section 15A of the Act,\4\ in general, and with Section 15A(b)(6) of
the Act,\5\ in particular, in that it is designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to a free and open market
and a national market system, and, in general, to protect investors and
the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78o-3.
\5\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B.Self-Regulatory Organization's Statement on Burden on Competition
NASD does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C.Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has been filed by NASD as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act
\6\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\7\ Consequently,
because the foregoing rule change does not:
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
(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 of filing, 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 and Rule 19b-
4(f)(6) thereunder.\8\
---------------------------------------------------------------------------
\8\ Rule 19b-4(f)(6) under the Act also requires a self-
regulatory organization to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
NASD complied with this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. NASD has requested that the
Commission waive the 30-day pre-operative period, which would make the
proposed rule operative immediately.
The Commission believes that it is consistent with the protection
of investors and the public interest to waive the 30-day pre-operative
period in this case.\9\ Allowing the rule change to become operative
immediately should allow Brut system users to take advantage of
additional trading flexibility without delay. Consequently, the
proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\9\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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
[[Page 39839]]
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, as amended, 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-2005-081 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-NASD-2005-081. 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-2005-081 and should be submitted on or before
August 1, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-3621 Filed 7-8-05; 8:45 am]
BILLING CODE 8010-01-P
