Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Modify Pricing for NASD Members Using the Nasdaq Market Center and Nasdaq's Brut Facility, 2608-2610 [E6-401]

Download as PDF 2608 Federal Register / Vol. 71, No. 10 / Tuesday, January 17, 2006 / Notices applicable to a self-regulatory organization.10 Specifically, the Interested persons are invited to Commission believes that the proposed submit written data, views, and rule change, as amended, is consistent arguments concerning the foregoing, with section 15A(b)(5) of the Act,11 including whether the proposed rule which requires that the rules of the selfchange, as amended, is consistent with the Act. Comments may be submitted by regulatory organization provide for the equitable allocation of reasonable dues, any of the following methods: fees, and other charges among members Electronic Comments and issuers and other persons using any facilities or system which it operates or • Use the Commission’s Internet controls. comment form (https://www.sec.gov/ The Commission notes that this rules/sro.shtml); or proposal would retroactively modify • Send an e-mail to rulepricing for non-NASD members using comments@sec.gov. Please include File the Nasdaq’s Brut Facility to extend a Number SR–NASD–2005–155 on the pilot running through February 28, subject line. 2005. This proposal would permit the Paper Comments schedule for non-NASD members to mirror the schedule applicable to NASD • Send paper comments in triplicate members that became effective January to Nancy M. Morris, Secretary, 1, 2006, pursuant to SR–NASD–2005– Securities and Exchange Commission, 154 and that Nasdaq stated it would 100 F Street, NE., Washington, DC implement on a pilot basis from January 20549–9303. 1, 2006 to February 28, 2006. All submissions should refer to File The Commission finds good cause for Number SR–NASD–2005–155. This file approving the proposed rule change, as number should be included on the amended, prior to the 30th day of the subject line if e-mail is used. To help the date of publication of the notice thereof Commission process and review your in the Federal Register. The comments more efficiently, please use Commission notes that the proposed only one method. The Commission will fees for non-NASD members are post all comments on the Commission’s identical to those in SR–NASD–2005– Internet Web site (https://www.sec.gov/ 154, which implemented those fees for rules/sro.shtml). Copies of the NASD members and which became submission, all subsequent effective as of January 1, 2006. The amendments, all written statements Commission notes that this change will with respect to the proposed rule promote consistency in Nasdaq’s fee change that are filed with the schedule by applying the same pricing Commission, and all written schedule with the same date of communications relating to the effectiveness for both NASD members proposed rule change between the and non-NASD members. Therefore, the Commission and any person, other than Commission finds that there is good those that may be withheld from the cause, consistent with section 19(b)(2) public in accordance with the of the Act,12 to approve the proposed provisions of 5 U.S.C. 552, will be rule change, as amended, on an available for inspection and copying in accelerated basis. the Commission’s Public Reference Room. Copies of such filing also will be V. Conclusion available for inspection and copying at It is therefore ordered, pursuant to the principal office of the NASD. All section 19(b)(2) of the Act,13 that the comments received will be posted proposed rule change, as amended, (File without change; the Commission does No. SR–NASD–2005–155), is approved not edit personal identifying on an accelerated basis. information from submissions. You For the Commission, by the Division of should submit only information that Market Regulation, pursuant to delegated you wish to make available publicly. All authority.14 submissions should refer to File Nancy M. Morris, Number SR–NASD–2005–155 and Secretary. should be submitted on or before [FR Doc. E6–395 Filed 1–13–06; 8:45 am] February 7, 2006. sroberts on PROD1PC69 with NOTICES III. Solicitation of Comments IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder VerDate Aug<31>2005 15:57 Jan 13, 2006 Jkt 208001 BILLING CODE 8010–01–P 10 The Commission has considered the proposed rule’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 11 15 U.S.C. 78o–3(b)(5). 12 15 U.S.C. 78s(b)(2). 13 15 U.S.C. 78s(b)(2). 14 17 CFR 200.30–3(a)(12). PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53081; File No. SR–NASD– 2005–154] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Modify Pricing for NASD Members Using the Nasdaq Market Center and Nasdaq’s Brut Facility January 9, 2006. 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 28, 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. On December 30, 2005, Nasdaq submitted Amendment No. 1 to the proposed rule change.3 Nasdaq has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the self-regulatory organization under Section 19(b)(3)(A)(ii) 4 of the Act and Rule 19b–4(f)(2) thereunder,5 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to modify the pricing for NASD members using the Nasdaq Market Center and Nasdaq’s Brut Facility (‘‘Brut’’). Nasdaq states that it will implement the proposed rule change on January 1, 2006 for a pilot period running through February 28, 2006. The text of the proposed rule change, as amended, is below. Proposed new language is in italics; proposed deletions are in [brackets]. * * * * * 7010. System Services (a)–(h) No change. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Partial Amendment No. 1 (‘‘Amendment No. 1’’) clarified that the proposed rule change is a pilot program. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). 2 17 E:\FR\FM\17JAN1.SGM 17JAN1 Federal Register / Vol. 71, No. 10 / Tuesday, January 17, 2006 / Notices (i) Nasdaq Market Center and Brut Facility Order Execution (1)–(4) No change. (5) There shall be no charges or credits for order entry, execution, routing, or cancellation by members accessing the Nasdaq Market Center or Nasdaq’s Brut Facility to buy or sell exchange-listed securities subject to the Consolidated Quotations Service and Consolidated Tape Association plans, other than: (A)–(D) No change. (E) for a pilot period beginning December 1, 2005 and ending [December 31, 2005] February 28, 2006, a credit of $0.0005 per share executed to a member providing liquidity for a transaction in the following stocks: Advanced Micro Devices Inc. (AMD); Apache Corp. (APA); AT&T Corp. (T); Avaya, Inc. (AV); Baker Hughes, Inc. (BHI); BJ Services Co. (BJS); Bristol-Myers Squibb Co. (BMY); Burlington Resources, Inc. (BR); Calpine Corp. (CPN); Charles Schwab Corp. (SCH); Citigroup Inc. (C); ConocoPhillips (COP); Corning Inc. (GLW); Devon Energy Corp. (DVN); EMC Corp. (EMC); Exxon Mobil Corp. (XOM); Ford Motor Co. (F); Gateway, Inc. (GTW); General Electric Co. (GE); Halliburton Co. (HAL); Hewlett-Packard Co. (HPQ); Johnson & Johnson (JNJ); JPMorgan Chase & Co. (JPM); Kohl’s Corp. (KSS); LSI Logic Corp. (LSI); Micron Technology, Inc. (MU); Motorola, Inc. (MOT); Noble Corp. (NE); Occidental Petroleum Corp. (OXY); Office Depot Inc. (ODP); Pfizer Inc. (PFE); Phelps Dodge Corp. (PD); Pulte Homes, Inc. (PHM); Qwest Communications International Inc. (Q); Schlumberger Ltd. (SLB); Solectron Corp. (SLR); Sovereign Bancorp, Inc. (SOV); Time Warner, Inc. (TWX); Valero Energy Corp. (VLO); and Verizon Communications, Inc. (VZ). (6) No change. (j)–(v) No change. * * * * * sroberts on PROD1PC69 with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of and basis for the proposed rule change, as amended, and discussed any comments it received on the proposed rule change, as amended. The text of these statements may be examined at the places specified in Item IV below. Nasdaq has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. VerDate Aug<31>2005 15:57 Jan 13, 2006 Jkt 208001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose In SR–NASD–2005–137 and SR– NASD–2005–138,6 Nasdaq created a pilot program under which liquidity providers (i.e., market participants that post quotes or orders that are accessed by incoming orders) 7 may receive a credit of $0.0005 per share executed with respect to forty stocks listed on the New York Stock Exchange.8 As stated in the prior filings, Nasdaq notes that it planned to run the pilot for a period of at least three months; however, Nasdaq states that, because the authority for this proposal provided by the Nasdaq Board of Directors ran only through December 31, 2005, Nasdaq needed to obtain Board approval for a longer pilot. Having obtained such approval, Nasdaq is now filing to extend the pilot through February 28, 2006.9 2. Statutory Basis Nasdaq believes that the proposed rule change, as amended, is consistent with the provisions of Section 15A of the Act,10 in general, and with Section 15A(b)(5) of the Act,11 in particular, in that the proposed rule change, as amended, provides for the equitable allocation of reasonable dues, fees, and other charges among members and 6 Securities Exchange Act Release Nos. 52939 (December 9, 2005), 70 FR 75229 (December 19, 2005) (SR–NASD–2005–137) and 52938 (December 9, 2005), 70 FR 75231 (December 19, 2005) (SR– NASD–2005–138). 7 Telephone conversation between John Yetter, Associate General Counsel, Exchange, and Michou Nguyen, Attorney, Division of Market Regulation, Commission, on January 4, 2006. 8 Advanced Micro Devices Inc. (AMD); Apache Corp. (APA); AT&T Corp. (T); Avaya, Inc. (AV); Baker Hughes, Inc. (BHI); BJ Services Co. (BJS); Bristol-Myers Squibb Co. (BMY); Burlington Resources, Inc. (BR); Calpine Corp. (CPN); Charles Schwab Corp. (SCH); Citigroup Inc. (C); ConocoPhillips (COP); Corning Inc. (GLW); Devon Energy Corp. (DVN); EMC Corp. (EMC); Exxon Mobil Corp. (XOM); Ford Motor Co. (F); Gateway, Inc. (GTW); General Electric Co. (GE); Halliburton Co. (HAL); Hewlett-Packard Co. (HPQ); Johnson & Johnson (JNJ); JPMorgan Chase & Co. (JPM); Kohl’s Corp. (KSS); LSI Logic Corp. (LSI); Micron Technology, Inc. (MU); Motorola, Inc. (MOT); Noble Corp. (NE); Occidental Petroleum Corp. (OXY); Office Depot Inc. (ODP); Pfizer Inc. (PFE); Phelps Dodge Corp. (PD); Pulte Homes, Inc. (PHM); Qwest Communications International Inc. (Q); Schlumberger Ltd. (SLB); Solectron Corp. (SLR); Sovereign Bancorp, Inc. (SOV); Time Warner, Inc. (TWX); Valero Energy Corp. (VLO); and Verizon Communications, Inc. (VZ). 9 The change proposed by this filing applies to NASD members that use the Nasdaq Market Center and Brut; in SR–NASD–2005–155, Nasdaq proposes to make the same change applicable to nonmembers that use Brut. 10 15 U.S.C. 78o–3. 11 15 U.S.C. 78o–3(b)(5). PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 2609 issuers and other persons using any facility or system which the NASD operates or controls. Nasdaq states that the proposed rule change, as amended, will continue a pilot to make a liquidity provider credit available to all market participants that opt to provide liquidity through Nasdaq or Brut to support execution in any of forty stocks included in the pilot program. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change, as amended, 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 Nasdaq states that written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change, as amended, is subject to Section 19(b)(3)(A)(ii) of the Act 12 and subparagraph (f)(2) of Rule 19b–4 13 thereunder because it establishes or changes a due, fee, or other charge imposed by the self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the filing. 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.14 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: 12 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 14 The effective date of the original proposed rule change is December 28, 2005, and the effective date of Amendment No. 1 is December 30, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, as amended, the Commission considers the period to commence on December 30, 2005, the date on which the Exchange submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 13 17 E:\FR\FM\17JAN1.SGM 17JAN1 2610 Federal Register / Vol. 71, No. 10 / Tuesday, January 17, 2006 / Notices Electronic Comments SOCIAL SECURITY ADMINISTRATION • 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–2005–154 on the subject line. The Ticket To Work and Work Incentives Advisory Panel Meeting Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–NASD–2005–154. 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–2005–154 and should be submitted on or before February 7, 2006. sroberts on PROD1PC69 with NOTICES For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Nancy M. Morris, Secretary. [FR Doc. E6–401 Filed 1–13–06; 8:45 am] BILLING CODE 8010–01–P 15 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:57 Jan 13, 2006 Jkt 208001 AGENCY: Social Security Administration (SSA). ACTION: Notice of Quarterly Meeting. February 1, 2006—9 a.m. to 5 p.m., February 2, 2006—9 a.m. to 5 p.m., February 3, 2006—8 a.m. to 12:15 p.m. ADDRESSES: Embassy Suites San Juan, 8000 Tartak Street, Isla Verde Carolina, San Juan, PR 00979. Phone: 787–791– 0505. DATES: SUPPLEMENTARY INFORMATION: Type of meeting: On February 1–3, 2006, the Ticket to Work and Work Incentives Advisory Panel (the ‘‘Panel’’) will hold a quarterly meeting open to the public. Purpose: In accordance with section 10(a)(2) of the Federal Advisory Committee Act, the Social Security Administration (SSA) announces a meeting of the Ticket to Work and Work Incentives Advisory Panel. Section 101(f) of Public Law 106–170 establishes the Panel to advise the President, the Congress, and the Commissioner of SSA on issues related to work incentive programs, planning, and assistance for individuals with disabilities as provided under section 101(f)(2)(A) of the TWWIA. The Panel is also to advise the Commissioner on matters specified in section 101(f)(2)(B) of that Act, including certain issues related to the Ticket to Work and SelfSufficiency Program established under section 101(a) of that Act. Interested parties are invited to attend the meeting. The Panel will use the meeting time to receive briefings and presentations on matters of interest, conduct full Panel deliberations on the implementation of the Act and receive public testimony. The Panel will meet in person commencing on Wednesday, February 1, 2006, from 9 a.m. until 5 p.m. The quarterly meeting will continue on Thursday, February 2, 2006, from 9 a.m. until 5 p.m. The meeting will continue on Friday, February 3, 2006, from 8 a.m. until 12:15 p.m. Agenda: Members of the public must schedule a time slot in order to comment. In the event public comments do not take the entire scheduled time period, the Panel may use that time to deliberate or conduct other Panel business. Public testimony will be heard on Thursday, February 2, 2006, from 9 a.m. until 10 a.m. Individuals interested in providing testimony in person should PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 contact the Panel staff as outlined below to schedule a time slot. Each presenter will be acknowledged by the Chair in the order in which they are scheduled to testify and is limited to a maximum five-minute, verbal presentation. Full written testimony on the Implementation of the Ticket to Work and Work Incentives Program, no longer than five (5) pages, may be submitted in person or by mail, fax or e-mail on an ongoing basis to the Panel for consideration. Since seating may be limited, persons interested in providing testimony at the meeting should contact the Panel staff by e-mailing Ms. Tinya White-Taylor, at Tinya.White-Taylor@ssa.gov or by calling (202) 358–6430. Social Security beneficiary testimony will be heard on Friday, February 3, 2006, from 10:45 a.m. until 12:15 p.m. The Panel is seeking beneficiary testimony on how changes in the following would affect beneficiaries’ return to work experiences: (1) Ending the requirement that an individual’s medical benefits must be tied to their eligibility for Social Security Disability Insurance (SSDI) cash benefits; (2) gradually reducing beneficiaries’ monthly SSDI checks once they earn a certain amount for a certain period of time instead of ending them all at once; (3) allowing beneficiaries to earn more and still remain eligible for a monthly Social Security check; (4) providing beneficiaries accurate, understandable information about how Social Security work rules would affect them; (5) extending beneficiaries’ eligibility for other federally funded support services, such as financial help with housing and food for a transition period of up to 3 years after reaching full-time employment; and (6) any other issues not listed above that would affect beneficiaries’ ability to return to work. Beneficiaries who would like to speak to the Panel should contact Tinya WhiteTaylor by January 25, 2006, and state which of the above issues they’ll be addressing. (See contact information above.) Beneficiary testimony will be presented by topic area. Written comments from those who do not attend are also welcomed and must be submitted in person or by mail, fax, or e-mail by January 25, 2006. The full agenda for the meeting will be posted on the Internet at https:// www.ssa.gov/work/panel at least one week before the starting date or can be received, in advance, electronically or by fax upon request. Contact Information: Records are kept of all proceedings and will be available for public inspection by appointment at the Panel office. Anyone requiring E:\FR\FM\17JAN1.SGM 17JAN1

Agencies

[Federal Register Volume 71, Number 10 (Tuesday, January 17, 2006)]
[Notices]
[Pages 2608-2610]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-401]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53081; File No. SR-NASD-2005-154]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change and Amendment No. 1 Thereto To Modify Pricing for NASD 
Members Using the Nasdaq Market Center and Nasdaq's Brut Facility

January 9, 2006.
    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 28, 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. On December 
30, 2005, Nasdaq submitted Amendment No. 1 to the proposed rule 
change.\3\ Nasdaq has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by the self-regulatory 
organization under Section 19(b)(3)(A)(ii) \4\ of the Act and Rule 19b-
4(f)(2) thereunder,\5\ which renders the proposal effective upon filing 
with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Partial Amendment No. 1 (``Amendment No. 1'') clarified that 
the proposed rule change is a pilot program.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    Nasdaq proposes to modify the pricing for NASD members using the 
Nasdaq Market Center and Nasdaq's Brut Facility (``Brut''). Nasdaq 
states that it will implement the proposed rule change on January 1, 
2006 for a pilot period running through February 28, 2006.
    The text of the proposed rule change, as amended, is below. 
Proposed new language is in italics; proposed deletions are in 
[brackets].
* * * * *

7010. System Services

    (a)-(h) No change.

[[Page 2609]]

    (i) Nasdaq Market Center and Brut Facility Order Execution
    (1)-(4) No change.
    (5) There shall be no charges or credits for order entry, 
execution, routing, or cancellation by members accessing the Nasdaq 
Market Center or Nasdaq's Brut Facility to buy or sell exchange-listed 
securities subject to the Consolidated Quotations Service and 
Consolidated Tape Association plans, other than:
    (A)-(D) No change.
    (E) for a pilot period beginning December 1, 2005 and ending 
[December 31, 2005]
    February 28, 2006, a credit of $0.0005 per share executed to a 
member providing liquidity for a transaction in the following stocks: 
Advanced Micro Devices Inc. (AMD); Apache Corp. (APA); AT&T Corp. (T); 
Avaya, Inc. (AV); Baker Hughes, Inc. (BHI); BJ Services Co. (BJS); 
Bristol-Myers Squibb Co. (BMY); Burlington Resources, Inc. (BR); 
Calpine Corp. (CPN); Charles Schwab Corp. (SCH); Citigroup Inc. (C); 
ConocoPhillips (COP); Corning Inc. (GLW); Devon Energy Corp. (DVN); EMC 
Corp. (EMC); Exxon Mobil Corp. (XOM); Ford Motor Co. (F); Gateway, Inc. 
(GTW); General Electric Co. (GE); Halliburton Co. (HAL); Hewlett-
Packard Co. (HPQ); Johnson & Johnson (JNJ); JPMorgan Chase & Co. (JPM); 
Kohl's Corp. (KSS); LSI Logic Corp. (LSI); Micron Technology, Inc. 
(MU); Motorola, Inc. (MOT); Noble Corp. (NE); Occidental Petroleum 
Corp. (OXY); Office Depot Inc. (ODP); Pfizer Inc. (PFE); Phelps Dodge 
Corp. (PD); Pulte Homes, Inc. (PHM); Qwest Communications International 
Inc. (Q); Schlumberger Ltd. (SLB); Solectron Corp. (SLR); Sovereign 
Bancorp, Inc. (SOV); Time Warner, Inc. (TWX); Valero Energy Corp. 
(VLO); and Verizon Communications, Inc. (VZ).
    (6) No change.
    (j)-(v) 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, Nasdaq included statements 
concerning the purpose of and basis for the proposed rule change, as 
amended, and discussed any comments it received on the proposed rule 
change, as amended. The text of these statements may be examined at the 
places specified in Item IV below. Nasdaq has prepared summaries, set 
forth in sections A, B, and C below, of the most significant aspects of 
such statements.

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

1. Purpose
    In SR-NASD-2005-137 and SR-NASD-2005-138,\6\ Nasdaq created a pilot 
program under which liquidity providers (i.e., market participants that 
post quotes or orders that are accessed by incoming orders) \7\ may 
receive a credit of $0.0005 per share executed with respect to forty 
stocks listed on the New York Stock Exchange.\8\
---------------------------------------------------------------------------

    \6\ Securities Exchange Act Release Nos. 52939 (December 9, 
2005), 70 FR 75229 (December 19, 2005) (SR-NASD-2005-137) and 52938 
(December 9, 2005), 70 FR 75231 (December 19, 2005) (SR-NASD-2005-
138).
    \7\ Telephone conversation between John Yetter, Associate 
General Counsel, Exchange, and Michou Nguyen, Attorney, Division of 
Market Regulation, Commission, on January 4, 2006.
    \8\ Advanced Micro Devices Inc. (AMD); Apache Corp. (APA); AT&T 
Corp. (T); Avaya, Inc. (AV); Baker Hughes, Inc. (BHI); BJ Services 
Co. (BJS); Bristol-Myers Squibb Co. (BMY); Burlington Resources, 
Inc. (BR); Calpine Corp. (CPN); Charles Schwab Corp. (SCH); 
Citigroup Inc. (C); ConocoPhillips (COP); Corning Inc. (GLW); Devon 
Energy Corp. (DVN); EMC Corp. (EMC); Exxon Mobil Corp. (XOM); Ford 
Motor Co. (F); Gateway, Inc. (GTW); General Electric Co. (GE); 
Halliburton Co. (HAL); Hewlett-Packard Co. (HPQ); Johnson & Johnson 
(JNJ); JPMorgan Chase & Co. (JPM); Kohl's Corp. (KSS); LSI Logic 
Corp. (LSI); Micron Technology, Inc. (MU); Motorola, Inc. (MOT); 
Noble Corp. (NE); Occidental Petroleum Corp. (OXY); Office Depot 
Inc. (ODP); Pfizer Inc. (PFE); Phelps Dodge Corp. (PD); Pulte Homes, 
Inc. (PHM); Qwest Communications International Inc. (Q); 
Schlumberger Ltd. (SLB); Solectron Corp. (SLR); Sovereign Bancorp, 
Inc. (SOV); Time Warner, Inc. (TWX); Valero Energy Corp. (VLO); and 
Verizon Communications, Inc. (VZ).
---------------------------------------------------------------------------

    As stated in the prior filings, Nasdaq notes that it planned to run 
the pilot for a period of at least three months; however, Nasdaq states 
that, because the authority for this proposal provided by the Nasdaq 
Board of Directors ran only through December 31, 2005, Nasdaq needed to 
obtain Board approval for a longer pilot. Having obtained such 
approval, Nasdaq is now filing to extend the pilot through February 28, 
2006.\9\
---------------------------------------------------------------------------

    \9\ The change proposed by this filing applies to NASD members 
that use the Nasdaq Market Center and Brut; in SR-NASD-2005-155, 
Nasdaq proposes to make the same change applicable to non-members 
that use Brut.
---------------------------------------------------------------------------

2. Statutory Basis
    Nasdaq believes that the proposed rule change, as amended, is 
consistent with the provisions of Section 15A of the Act,\10\ in 
general, and with Section 15A(b)(5) of the Act,\11\ in particular, in 
that the proposed rule change, as amended, provides for the equitable 
allocation of reasonable dues, fees, and other charges among members 
and issuers and other persons using any facility or system which the 
NASD operates or controls. Nasdaq states that the proposed rule change, 
as amended, will continue a pilot to make a liquidity provider credit 
available to all market participants that opt to provide liquidity 
through Nasdaq or Brut to support execution in any of forty stocks 
included in the pilot program.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78o-3.
    \11\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------

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

    Nasdaq does not believe that the proposed rule change, as amended, 
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

    Nasdaq states that written comments were neither solicited nor 
received.

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

    The foregoing rule change, as amended, is subject to Section 
19(b)(3)(A)(ii) of the Act \12\ and subparagraph (f)(2) of Rule 19b-4 
\13\ thereunder because it establishes or changes a due, fee, or other 
charge imposed by the self-regulatory organization. Accordingly, the 
proposal is effective upon Commission receipt of the filing. 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.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
    \14\ The effective date of the original proposed rule change is 
December 28, 2005, and the effective date of Amendment No. 1 is 
December 30, 2005. For purposes of calculating the 60-day period 
within which the Commission may summarily abrogate the proposed rule 
change, as amended, the Commission considers the period to commence 
on December 30, 2005, the date on which the Exchange submitted 
Amendment No. 1. See 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, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

[[Page 2610]]

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-2005-154 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.

All submissions should refer to File Number SR-NASD-2005-154. 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-2005-154 and should be submitted on or before 
February 7, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-401 Filed 1-13-06; 8:45 am]
BILLING CODE 8010-01-P