Regulation NMS, 45529 [05-15597]

Download as PDF Federal Register / Vol. 70, No. 151 / Monday, August 8, 2005 / Rules and Regulations SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 242 [Release No. 34–52196; File No. S7–10–04] Regulation NMS Securities and Exchange Commission. ACTION: Final rule; extension of compliance date. AGENCY: The Commission is extending the compliance date for the rule under the Securities Exchange Act of 1934 included as part of Regulation NMS that governs sub-penny quoting. DATES: The effective date of Regulation NMS published on June 29, 2005 (70 FR 37496) remains August 29, 2005. Effective on August 8, 2005, the compliance date for the sub-penny rule is extended from August 29, 2005 to January 31, 2006. FOR FURTHER INFORMATION CONTACT: Michael Gaw, (202) 551–5602, Senior Special Counsel, Division of Market Regulation, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. SUPPLEMENTARY INFORMATION: On June 29, 2005, the Securities and Exchange Commission (‘‘Commission’’) published in the Federal Register its release adopting Regulation NMS 1 under the Securities Exchange Act of 1934. Rule 612 of Regulation NMS 2 governs subpenny quoting of NMS stocks.3 The Regulation NMS Adopting Release established an effective date and a compliance date of August 29, 2005 for Rule 612.4 During the implementation period for Rule 612, numerous market participants have stated that complying with Rule 612 by August 29, 2005 will be unduly burdensome based on interpretive and programming issues and have requested a delay. The original compliance date— August 29, 2005—is less than one month away. According to market participants, an extension of the compliance date will provide them additional time to address issues related to compliance with and implementation of Rule 612 and to make necessary systems and other changes to comply with the requirements of Rule 612. The Commission believes that delaying the compliance date for Rule SUMMARY: 1 17 CFR 242.600 to 242.612. See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005) (‘‘Regulation NMS Adopting Release’’). 2 17 CFR 242.612. 3 See 17 CFR 242.600(b)(46) and (b)(47) (defining ‘‘NMS stock’’). 4 See 70 FR at 37576. VerDate jul<14>2003 18:56 Aug 05, 2005 Jkt 205001 612 for a short period of time is appropriate. An extension of the compliance date will provide the Commission and its staff time to respond to the interpretive issues that the industry has identified. Additionally, an extension will provide market participants with adequate time to resolve implementation issues. The benefits of Rule 612 5 will be delayed briefly as market participants address issues related to compliance with and implementation of Rule 612, ascertain what systems and other changes are necessary to comply with the rule, and develop, implement, and test those changes. Accordingly, the Commission believes it is appropriate to extend the compliance date for Rule 612 until January 31, 2006. The effective date of August 29, 2005 remains unchanged.6 The Commission for good cause finds that, for the reasons cited above, notice and solicitation of comment regarding the extension of the compliance date for Rule 612 is impracticable, unnecessary, and contrary to the public interest.7 The Commission notes that the August 29, 2005 compliance date is less than one month away, and that a limited extension of the compliance date will provide market participants with additional time to seek guidance on interpretive questions, apply the requirements of Rule 612, and implement appropriate changes. Further, the Commission notes that, in light of these time constraints, full notice and comment rulemaking could not be completed prior to the August 29, 2005 compliance date. The change to the compliance date for Rule 612 is effective upon publication in the Federal Register. This date is less than 30 days after publication in the Federal Register, in accordance with the Administrative Procedure Act, which allows effectiveness in less than 30 days after publication for ‘‘a substantive rule which grants or recognizes an exemption or relieves a restriction.’’ 8 Dated: August 2, 2005. By the Commission. Jonathan G. Katz, Secretary. [FR Doc. 05–15597 Filed 8–5–05; 8:45 am] BILLING CODE 8010–01–P 5 See Regulation NMS Adopting Release, 70 FR at 37588 (discussing benefits of Rule 612). 6 This extension does not alter the effective or compliance dates of the other provisions of Regulation NMS. 7 See Section 553(b)(3)(B) of the Administrative Procedure Act (5 U.S.C. 553(b)(3)(B)) (an agency may dispense with prior notice and comment when it finds, for good cause, that notice and comment are ‘‘impracticable, unnecessary, or contrary to the public interest’’). 8 5 U.S.C. 553(d)(1). PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 45529 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9218] RIN 1545–BE16 Exclusions From Gross Income of Foreign Corporations Internal Revenue Service (IRS), Treasury. ACTION: Final rule; delay of effective date. AGENCY: SUMMARY: This document amends the applicability date of final regulations under sections 883(a) and (c) (TD 9087) which were published in the Federal Register on August 26, 2003 (68 FR 51394). Those final regulations relate to income derived by a foreign corporation from the international operation of ships or aircraft. DATES: Effective Date: These regulations are effective August 8, 2005. Applicability Date: These regulations are applicable to taxable years of foreign corporations beginning after September 24, 2004. FOR FURTHER INFORMATION CONTACT: Patricia Bray, (202) 622–3880 (not a tollfree number). SUPPLEMENTARY INFORMATION: Background Sections 883(a)(1) and (a)(2) of the Internal Revenue Code (Code) provide that income derived by a foreign corporation from the international operation of ships or aircraft may be excluded from gross income. In 2003, the Treasury Department and the IRS issued final regulations under section 883 applicable to taxable years of a foreign corporation beginning 30 days or more after August 26, 2003. The final regulations provide, in general, that a foreign corporation organized in a qualified foreign country and engaged in the international operation of ships or aircraft shall exclude qualified income from gross income for purposes of U.S. Federal income taxation, provided that the corporation can satisfy certain stock ownership and related documentation requirements. The regulations provide that a foreign corporation may satisfy the stock ownership requirement if it meets one of three tests under § 1.883–1(c)(2). One such test provides that a controlled foreign corporation, as defined in section 957(a) (CFC), satisfies the stock ownership test of § 1.883–1(c)(2) if it meets the requirements of § 1.883–3, including the income inclusion test of E:\FR\FM\08AUR1.SGM 08AUR1

Agencies

[Federal Register Volume 70, Number 151 (Monday, August 8, 2005)]
[Rules and Regulations]
[Page 45529]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-15597]



[[Page 45529]]

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 242

[Release No. 34-52196; File No. S7-10-04]


Regulation NMS

AGENCY: Securities and Exchange Commission.

ACTION: Final rule; extension of compliance date.

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SUMMARY: The Commission is extending the compliance date for the rule 
under the Securities Exchange Act of 1934 included as part of 
Regulation NMS that governs sub-penny quoting.

DATES: The effective date of Regulation NMS published on June 29, 2005 
(70 FR 37496) remains August 29, 2005. Effective on August 8, 2005, the 
compliance date for the sub-penny rule is extended from August 29, 2005 
to January 31, 2006.

FOR FURTHER INFORMATION CONTACT: Michael Gaw, (202) 551-5602, Senior 
Special Counsel, Division of Market Regulation, Securities and Exchange 
Commission, 100 F Street NE., Washington, DC 20549.

SUPPLEMENTARY INFORMATION: On June 29, 2005, the Securities and 
Exchange Commission (``Commission'') published in the Federal Register 
its release adopting Regulation NMS \1\ under the Securities Exchange 
Act of 1934. Rule 612 of Regulation NMS \2\ governs sub-penny quoting 
of NMS stocks.\3\ The Regulation NMS Adopting Release established an 
effective date and a compliance date of August 29, 2005 for Rule 
612.\4\
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    \1\ 17 CFR 242.600 to 242.612. See Securities Exchange Act 
Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005) 
(``Regulation NMS Adopting Release'').
    \2\ 17 CFR 242.612.
    \3\ See 17 CFR 242.600(b)(46) and (b)(47) (defining ``NMS 
stock'').
    \4\ See 70 FR at 37576.
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    During the implementation period for Rule 612, numerous market 
participants have stated that complying with Rule 612 by August 29, 
2005 will be unduly burdensome based on interpretive and programming 
issues and have requested a delay. The original compliance date--August 
29, 2005--is less than one month away. According to market 
participants, an extension of the compliance date will provide them 
additional time to address issues related to compliance with and 
implementation of Rule 612 and to make necessary systems and other 
changes to comply with the requirements of Rule 612.
    The Commission believes that delaying the compliance date for Rule 
612 for a short period of time is appropriate. An extension of the 
compliance date will provide the Commission and its staff time to 
respond to the interpretive issues that the industry has identified. 
Additionally, an extension will provide market participants with 
adequate time to resolve implementation issues. The benefits of Rule 
612 \5\ will be delayed briefly as market participants address issues 
related to compliance with and implementation of Rule 612, ascertain 
what systems and other changes are necessary to comply with the rule, 
and develop, implement, and test those changes. Accordingly, the 
Commission believes it is appropriate to extend the compliance date for 
Rule 612 until January 31, 2006. The effective date of August 29, 2005 
remains unchanged.\6\
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    \5\ See Regulation NMS Adopting Release, 70 FR at 37588 
(discussing benefits of Rule 612).
    \6\ This extension does not alter the effective or compliance 
dates of the other provisions of Regulation NMS.
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    The Commission for good cause finds that, for the reasons cited 
above, notice and solicitation of comment regarding the extension of 
the compliance date for Rule 612 is impracticable, unnecessary, and 
contrary to the public interest.\7\ The Commission notes that the 
August 29, 2005 compliance date is less than one month away, and that a 
limited extension of the compliance date will provide market 
participants with additional time to seek guidance on interpretive 
questions, apply the requirements of Rule 612, and implement 
appropriate changes. Further, the Commission notes that, in light of 
these time constraints, full notice and comment rulemaking could not be 
completed prior to the August 29, 2005 compliance date. The change to 
the compliance date for Rule 612 is effective upon publication in the 
Federal Register. This date is less than 30 days after publication in 
the Federal Register, in accordance with the Administrative Procedure 
Act, which allows effectiveness in less than 30 days after publication 
for ``a substantive rule which grants or recognizes an exemption or 
relieves a restriction.'' \8\
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    \7\ See Section 553(b)(3)(B) of the Administrative Procedure Act 
(5 U.S.C. 553(b)(3)(B)) (an agency may dispense with prior notice 
and comment when it finds, for good cause, that notice and comment 
are ``impracticable, unnecessary, or contrary to the public 
interest'').
    \8\ 5 U.S.C. 553(d)(1).

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    Dated: August 2, 2005.

    By the Commission.
Jonathan G. Katz,
Secretary.
[FR Doc. 05-15597 Filed 8-5-05; 8:45 am]
BILLING CODE 8010-01-P
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