Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NASD Rule 2111 to Eliminate References to NASD Rule 6440(f)(2), Which Will Be Repealed, 77223-77225 [E5-8064]
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Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices
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Nasdaq also proposes to clarify that
an issuer that applies for listing on one
tier of Nasdaq, but prior to listing
decides to apply to list instead on the
other tier, is not required to pay an
additional application fee in connection
with its revised application. For
example, an issuer that submits an
application for inclusion of a class of
securities in the Nasdaq National
Market is required to pay a $5,000
nonrefundable application fee that is
submitted with the issuer’s application.
If prior to listing the issuer decides to
apply to list on the Nasdaq Capital
Market instead, the issuer would not be
required to pay an additional $5,000
application fee in connection with its
revised application.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Nasdaq has neither solicited nor
received comments on 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, and
2. Statutory Basis
Nasdaq provided the Commission with
written notice of its intent to file the
Nasdaq believes that the proposed
proposed rule change, along with a brief
rule change is consistent with the
provisions of Section 15A of the Act,8 in description and text of the proposed
rule change, at least five days prior to
general, and with Sections 15A(b)(5) 9
and 15A(b)(6) 10 of the Act, in particular, the filing date,11 the proposed rule
change has become effective pursuant to
in that it provides for the equitable
Section 19(b)(3)(A) of the Act 12 and
allocation of reasonable fees, dues, and
Rule 19b–4(f)(6) thereunder.13
other charges among members and
issuers and other persons using any
IV. Solicitation of Comments
facility or system which the Nasdaq
Interested persons are invited to
operates or controls, and is designed to
submit written data, views, and
remove impediments to and perfect the
arguments concerning the foregoing,
mechanism of a free and open market
including whether the proposed rule
and a national market system. Nasdaq
change is consistent with the Act.
believes the proposed rule change
Comments may be submitted by any of
provides for an equitable allocation of
the following methods:
reasonable fees because, although
Capital Market issuers that transfer their Electronic Comments
• Use the Commission’s Internet
listing to the National Market would
comment form (https://www.sec.gov/
continue to pay an entry fee for each
class of securities listed, such fee would rules/sro.shtml); or
• Send an e-mail to rulebe reduced in recognition that these
comments@sec.gov. Please include File
issuers already paid an entry fee upon
Number SR–NASD–2005–143 on the
listing on the Capital Market, and that
subject line.
there is a corresponding reduction in
Paper Comments
the time and effort necessary to process
listing applications of such companies.
• Send paper comments in triplicate
In addition, the proposed rule change
to Jonathan G. Katz, Secretary,
should enhance competition among
Securities and Exchange Commission,
markets by allowing issuers to better
100 F Street, NE., Washington, DC
evaluate the benefits of maintaining a
20549–9303.
listing on Nasdaq.
All submissions should refer to File
Number SR–NASD–2005–143. This file
B. Self-Regulatory Organization’s
number should be included on the
Statement on Burden on Competition
subject line if e-mail is used. To help the
Commission process and review your
Nasdaq does not believe that the
comments more efficiently, please use
proposed rule change will result in any
only one method. The Commission will
burden on competition that is not
post all comments on the Commission’s
necessary or appropriate in furtherance
Internet Web site (https://www.sec.gov/
of the purposes of the Act, as amended.
rules/sro.shtml). Copies of the
U.S.C. 78o–3.
U.S.C. 78o–3(b)(5).
10 15 U.S.C. 78o–3(b)(6).
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 the 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–2005–143 and
should be submitted on or before
January 19, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jonathan G. Katz,
Secretary.
[FR Doc. E5–8055 Filed 12–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52998; File No. SR–NASD–
2005–139]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NASD Rule
2111 to Eliminate References to NASD
Rule 6440(f)(2), Which Will Be
Repealed
December 22, 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 December
1, 2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) 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 NASD. The
NASD filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
8 15
11 See
14 17
9 15
12 15
1 15
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18:56 Dec 28, 2005
footnote 5, supra.
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
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77223
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices
Act3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposal effective
upon filing with the Commission.5 The
NASD proposes to implement the
proposed rule change on January 9,
2006. 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
The NASD proposes to amend NASD
Rule 2111 to delete two references to
NASD Rule 6440(f)(2) in light of SR–
NASD–2004–045,6 which repealed that
rule and will be implemented January 9,
2006. Correspondingly, the NASD will
implement the instant proposed rule
change on January 9, 2006. The text of
the proposed rule change is below.
Proposed deletions are in [brackets].
2111. Trading Ahead of Customer
Market Orders
This version of the rule does not
become effective until January 9, 2006.
(a)–(d) No change.
(e) This rule applies to limit orders
that are marketable at the time they are
received by the member or become
marketable at a later time. Such limit
orders shall be treated as market orders
for purposes of this rule, however, these
orders must continue to be executed at
their limit price or better. If a customer
limit order is not marketable when
received, the limit order must be
provided the full protections of IM–
2110–2 [ or Rule 6440(f)(2), as
applicable]. In addition, if the limit
order was marketable when received
and then becomes non-marketable, once
the limit order becomes non-marketable,
it must be provided the full protections
of IM–2110–2 [or Rule 6440(f)(2), as
applicable].
(f)–(g) 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, the
NASD included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 As required by Rule 19b–4(f)(6)(iii), 17 CFR
240.19b–4(f)(6)(iii), the NASD submitted 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.
6 See Securities Exchange Act Release No. 52226
(August 9, 2005), 70 FR 48219 (August 16, 2005)
(SR–NASD–2004–045).
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4 17
VerDate Aug<31>2005
18:56 Dec 28, 2005
Jkt 208001
comments it received on the proposal.
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
On August 9, 2005, the Commission
approved proposed rule change SR–
NASD–2004–045 adopting NASD Rule
2111 (‘‘Trading Ahead of Customer
Market Orders’’), which will be
implemented on January 9, 2006. NASD
Rule 2111 prohibits a member from
trading for its own account at prices that
would satisfy a customer market order
in a Nasdaq or exchange-listed security,
unless the member immediately
thereafter executes the customer market
order. In addition, NASD Rule 2111
provides that if a customer limit order
is not marketable when received, or if
the limit order is marketable when
received and then becomes nonmarketable, the limit order must be
provided the full protections of IM–
2110–2 (the ‘‘Manning Rule’’) or Rule
6440(f)(2), as applicable.7
On October 24, 2005, the NASD filed
SR–NASD–2005–124 seeking to repeal
NASD Rule 6440(f) because it overlaps
and is generally duplicative of new
NASD Rule 2111 and the Manning Rule,
as amended.8 SR–NASD–2005–124 was
filed for immediate effectiveness and
the implementation date is January 9,
2006. In light of the repeal of NASD
Rule 6440(f), the references to NASD
Rule 6440(f)(2) in NASD Rule 2111
should be deleted.
2. Statutory Basis
The NASD believes that the proposed
rule change is consistent with the
provisions of Section 15A(b)(6) of the
Act, which requires, among other
things, that NASD rules be designed to
prevent fraudulent and manipulative
7 At the time that the NASD filed SR–NASD–
2004–045 in March of 2004, the Manning Rule
afforded limit order protection to Nasdaq securities
and NASD Rule 6440(f)(2) afforded a similar
protection to exchange-listed securities. In August
of 2005, the Commission approved SR–NASD–
2004–089, which extended the Manning Rule to
exchange-listed securities. See Securities Exchange
Act Release No. 52210 (August 4, 2005), 70 FR
46897 (August 11, 2005) (SR–NASD–2004–089).
8 NASD Rule 6440(f) generally prohibits a
member from buying (selling) an exchange-listed
security for its own account while such member
holds an unexecuted market order or unexecuted
limit order to buy (sell) such security for a
customer.
PO 00000
Frm 00107
Fmt 4703
Sfmt 4703
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. The NASD believes that
the proposed rule change will further
the goals of improving the treatment of
market orders and enhancing the
integrity of the market by bringing
consistency and clarity to its conduct
rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The NASD believes that the proposed
rule change will not impose 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
The NASD has neither solicited nor
received comments on 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)
thereunder.10 At any time within 60
days of the filing of such 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.11
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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(C).
10 17
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Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2005–139 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and NASD Commission, 100
F Street, NE., Washington, DC 20549–
9303.
All submissions should refer to File
Number SR–NASD–2005–139. 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–2005–139 and
should be submitted on or before
January 19, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–8064 Filed 12–28–05; 8:45 am]
wwhite on PROD1PC65 with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53017; File No. SR–NASD–
2005–150]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify Nasdaq’s
Minimum Pricing Increment Rules
December 22, 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 December
22, 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, II, and III below, which Items
have been prepared by Nasdaq. Nasdaq
filed this proposal pursuant to section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(6) thereunder,4 therefore making the
proposed rule change effective
immediately upon filing. Nasdaq
intends for this rule change to become
operative on January 31, 2006. 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 the Substance
of the Proposed Rule Change
Nasdaq proposes to modify NASD
Rules 4613, 4701, 4710, 4901, 4904, and
6330 to align Nasdaq’s rules on
minimum pricing increments with the
corresponding provisions in the
Commission’s Regulation NMS.
The text of the proposed rule change
is below. Proposed new language is in
italics; proposed deletions are in
brackets.
*
*
*
*
*
4613. Character of Quotations
(a) Quotation Requirements and
Obligations
(1) Two-Sided Quote Obligation. For each
security in which a member is registered as
a market maker, the member shall be willing
to buy and sell such security for its own
account on a continuous basis and shall enter
and maintain a two-sided quotation
(‘‘Principal Quote’’), which is attributed to
the market maker by a special maker
participant identifier (‘‘MPID’’) and is
displayed in the Nasdaq Quotation Montage
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
12 17
CFR 200.30–3(a)(12).
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18:56 Dec 28, 2005
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Sfmt 4703
77225
at all times, subject to the procedures for
excused withdrawal set forth in Rule 4619.
(A) No change
(B) Minimum Price Variation [for Decimalbased Quotations]—The minimum quotation
increment for Nasdaq National Market and
Capital Market securities [authorized for
decimal pricing] shall be $0.01 for quotations
priced at or above $1.00 per share and
$0.0001 for quotations priced below $1.00
per share; provided, however, that if the
Securities and Exchange Commission
(‘‘SEC’’) permits, with respect to any security,
the display, rank or acceptance of quotations
priced at or above $1.00 per share in an
increment smaller than $0.01, then the
minimum quotation increment for such a
security shall be the minimum permitted by
the SEC or $0.0001, whichever is greater.
Quotations failing to meet this standard shall
be rejected.
(2) and (3) No change
(b) through (e) No change
* * *
4701. Definitions
Unless stated otherwise, the terms
described below shall have the following
meaning:
(a) through (ll) No change
(mm) The term ‘‘Pegged’’ shall mean, for
priced limit orders so designated, that after
entry into the Nasdaq Market Center, the
price of the order is automatically adjusted
by the Nasdaq Market Center in response to
changes in either the Nasdaq Market Center
inside bid or offer or the national best bid or
offer, as appropriate. A Nasdaq Market Center
Participant may enter either a Regular Pegged
Order or a Reverse Pegged Order.
A Nasdaq Market Center Participant
entering a Regular Pegged Order may specify
that the price of the order will deviate from
either the Nasdaq inside quote on the same
side of the market or the national best bid or
offer on the same side of the market by an
offset amount of $0 to $0.99. A Nasdaq
Market Center Participant entering a Reverse
Pegged Order may specify that the price of
the order will deviate from either the Nasdaq
inside quote on the contra side of the market
or the national best bid or offer on the contra
side of the market by an offset amount of
$0.01 to $0.99. The market participant
entering a Pegged Order may (but is not
required to) specify a cap price, to define a
price at which pegging of the order will stop
and the order will be permanently converted
into an unpegged limit order. Pegged Orders
shall not be available for ITS Securities.
Pegged orders shall not be eligible for routing
as set out in Rule 4714. Offset amounts for
Pegged Orders are priced in $0.01
increments. However, if at any time an offset
amount specified by a Nasdaq Market Center
Participant does not result in an offer or a bid
that is fully compliant with the minimum
price variation provisions of Rule 4613, then,
for an offer, the applicable offset amount will
be the smallest amount that results in a
compliant order and is greater than the
specified offset amount, and, for a bid, the
applicable offset amount will be the largest
amount that results in a compliant order and
is smaller than the specified offset amount.
(nn) The term ‘‘Discretionary’’ shall mean,
E:\FR\FM\29DEN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 249 (Thursday, December 29, 2005)]
[Notices]
[Pages 77223-77225]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-8064]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52998; File No. SR-NASD-2005-139]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend NASD Rule 2111 to Eliminate References to NASD
Rule 6440(f)(2), Which Will Be Repealed
December 22, 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 December 1, 2005, the National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD. The NASD
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A) of the
[[Page 77224]]
Act\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal
effective upon filing with the Commission.\5\ The NASD proposes to
implement the proposed rule change on January 9, 2006. 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).
\5\ As required by Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-
4(f)(6)(iii), the NASD submitted 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD proposes to amend NASD Rule 2111 to delete two references
to NASD Rule 6440(f)(2) in light of SR-NASD-2004-045,\6\ which repealed
that rule and will be implemented January 9, 2006. Correspondingly, the
NASD will implement the instant proposed rule change on January 9,
2006. The text of the proposed rule change is below. Proposed deletions
are in [brackets].
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 52226 (August 9,
2005), 70 FR 48219 (August 16, 2005) (SR-NASD-2004-045).
---------------------------------------------------------------------------
2111. Trading Ahead of Customer Market Orders
This version of the rule does not become effective until January 9,
2006.
(a)-(d) No change.
(e) This rule applies to limit orders that are marketable at the
time they are received by the member or become marketable at a later
time. Such limit orders shall be treated as market orders for purposes
of this rule, however, these orders must continue to be executed at
their limit price or better. If a customer limit order is not
marketable when received, the limit order must be provided the full
protections of IM-2110-2 [ or Rule 6440(f)(2), as applicable]. In
addition, if the limit order was marketable when received and then
becomes non-marketable, once the limit order becomes non-marketable, it
must be provided the full protections of IM-2110-2 [or Rule 6440(f)(2),
as applicable].
(f)-(g) 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, the NASD included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposal. 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
On August 9, 2005, the Commission approved proposed rule change SR-
NASD-2004-045 adopting NASD Rule 2111 (``Trading Ahead of Customer
Market Orders''), which will be implemented on January 9, 2006. NASD
Rule 2111 prohibits a member from trading for its own account at prices
that would satisfy a customer market order in a Nasdaq or exchange-
listed security, unless the member immediately thereafter executes the
customer market order. In addition, NASD Rule 2111 provides that if a
customer limit order is not marketable when received, or if the limit
order is marketable when received and then becomes non-marketable, the
limit order must be provided the full protections of IM-2110-2 (the
``Manning Rule'') or Rule 6440(f)(2), as applicable.\7\
---------------------------------------------------------------------------
\7\ At the time that the NASD filed SR-NASD-2004-045 in March of
2004, the Manning Rule afforded limit order protection to Nasdaq
securities and NASD Rule 6440(f)(2) afforded a similar protection to
exchange-listed securities. In August of 2005, the Commission
approved SR-NASD-2004-089, which extended the Manning Rule to
exchange-listed securities. See Securities Exchange Act Release No.
52210 (August 4, 2005), 70 FR 46897 (August 11, 2005) (SR-NASD-2004-
089).
---------------------------------------------------------------------------
On October 24, 2005, the NASD filed SR-NASD-2005-124 seeking to
repeal NASD Rule 6440(f) because it overlaps and is generally
duplicative of new NASD Rule 2111 and the Manning Rule, as amended.\8\
SR-NASD-2005-124 was filed for immediate effectiveness and the
implementation date is January 9, 2006. In light of the repeal of NASD
Rule 6440(f), the references to NASD Rule 6440(f)(2) in NASD Rule 2111
should be deleted.
---------------------------------------------------------------------------
\8\ NASD Rule 6440(f) generally prohibits a member from buying
(selling) an exchange-listed security for its own account while such
member holds an unexecuted market order or unexecuted limit order to
buy (sell) such security for a customer.
---------------------------------------------------------------------------
2. Statutory Basis
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(6) of the Act, which requires, among
other things, that NASD rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. The NASD believes that the proposed rule change will
further the goals of improving the treatment of market orders and
enhancing the integrity of the market by bringing consistency and
clarity to its conduct rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD believes that the proposed rule change will not impose 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
The NASD has neither solicited nor received comments on 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, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\9\ and Rule 19b-4(f)(6) thereunder.\10\ At any time within 60 days of
the filing of such 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.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(C).
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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
[[Page 77225]]
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2005-139 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and NASD Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NASD-2005-139. 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-2005-139
and should be submitted on or before January 19, 2006.
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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Jonathan G. Katz,
Secretary.
[FR Doc. E5-8064 Filed 12-28-05; 8:45 am]
BILLING CODE 8010-01-P
