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 the Hours of Operation of Nasdaq's Brut System, 6116-6117 [E6-1537]
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6116
Federal Register / Vol. 71, No. 24 / Monday, February 6, 2006 / Notices
approved for listing and trading on
another exchange and are governed by
contract specifications that are
substantially the same as those
proposed by Amex. The new options
proposed by Amex will be governed by
contract specifications that are
substantially the same as those that
govern the similar existing products.
Therefore, accelerating approval of
Amex’s proposal should benefit
investors by creating, without undue
delay, additional competition in the
market for the existing options, as well
as an additional investment opportunity
with regard to the new options.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,22 that the
proposed rule change, as amended (SR–
Amex–2005–061), is hereby approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.23
Nancy M. Morris,
Secretary.
[FR Doc. E6–1536 Filed 2–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53187; File No. SR–NASD–
2006–006]
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 the Hours of
Operation of Nasdaq’s Brut System
rmajette on PROD1PC67 with NOTICES1
January 30, 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 January
20, 2006, 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 Nasdaq. Nasdaq
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. On January 25, 2006, the
Amex filed Amendment No. 1 to the
22 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a))12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
23 17
VerDate Aug<31>2005
14:55 Feb 03, 2006
Jkt 208001
proposed rule change.4 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 amend NASD
Rule 4912. The text of the proposed rule
change is below. Additions are
italicized; deletions are [bracketed].5
*
*
*
*
*
4912. Normal Business Hours
The Brut System operates from [6:30]
7:30 a.m. to 8:00 p.m. Eastern Time on
each business day.
*
*
*
*
*
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 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. 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
Nasdaq proposes to modify the
starting time for the Brut ECN hours of
operation, order acceptance time, from
6:30 a.m. to 7:30 a.m. (Eastern Time).
This change will standardize the system
start times of the Nasdaq Market Center
and Nasdaq’s Brut Facility.
The current configuration allows
connectivity and order entry from the
time the System is brought online
beginning at 6:30 a.m., which allows
orders and executions to begin at 6:30
a.m.6
The proposed amendment would:
4 Amendment No. 1 clarified that the filing was
made pursuant to section 19(b)(3)(A)(iii) of the Act
and Rule 19b–4(f)(6) thereunder.
5 Changes are marked to the rule text that appears
in the electronic NASD Manual found at https://
www.nasd.com. Prior to the date when The
NASDAQ Stock Market LLC (‘‘NASDAQ LLC’’)
commences operations, NASDAQ LLC will file a
conforming change to the rules of NASDAQ LLC
approved in Securities Exchange Act Release No.
53128 (January 13, 2006).
6 Phone call from Jonathan Cayne, Associate
General Counsel, Nasdaq, to Angela R. Muehr,
Attorney, Commission, on January 27, 2006.
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
(1) Allow client connection from
System up time, scheduled to begin at
6:30 a.m. (this process takes 10–15
minutes);
(2) Reject orders entered prior to 7:30
a.m.;
(3) Allow orders and executions
beginning at 7:30 a.m.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with section
15A of the Act,7 in general, and furthers
the objectives of section 15A(b)(6) of the
Act,8 in particular, in that it is designed
to protect investors and the public
interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq 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 on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Nasdaq has filed the proposed rule
change pursuant to section 19(b)(3)(A)
of the Act 9 and subparagraph (f)(6) of
Rule 19b–4 thereunder.10 Because the
foregoing proposed rule change: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not 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, the proposed rule change has
become effective pursuant to section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder. As required under
Rule 19b–4(f)(6)(iii), Nasdaq provided
the Commission with written notice of
its intent to file the proposed rule
change at least five business days prior
to filing the proposal with the
Commission or such shorter period as
designated by the Commission.
At any time within 60 days of the
filing of such proposed rule change, the
77
15 U.S.C. 78o–3.
15 U.S.C. 78o–3(6).
9 9 15 U.S.C. 78s(b)(3)(A).
10 10 17 CFR 240.19b–4(f)(6).
88
E:\FR\FM\06FEN1.SGM
06FEN1
Federal Register / Vol. 71, No. 24 / Monday, February 6, 2006 / Notices
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
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2006–006 on the
subject line.
rmajette on PROD1PC67 with NOTICES1
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASD–2006–006. 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 Nasdaq. All
11 The effective date of the original proposed rule
change is January 20, 2006 and the effective date
of Amendment No. 1 is January 25, 2006. The
proposed rule change does not become operative for
30 days from the date of filing. For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change, as amended, under section 19(b)(3)(C)
of the Act, the Commission considers the period to
commence on January 25, 2006, the date on which
Nasdaq submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
VerDate Aug<31>2005
14:55 Feb 03, 2006
Jkt 208001
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–2006–006 and
should be submitted on or before
February 27, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–1537 Filed 2–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53189; File No. SR–NASD–
2006–007]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc; Notice of Filing of
Proposed Rule Change Relating to
Position Limits and Position Reporting
Obligations for Conventional Index and
Equity Options
January 30, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on January 23, 2006, 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 NASD. 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
NASD is proposing to amend NASD
Rule 2860 to: (a) Revise the definition of
the term ‘‘underlying index’’ to include
indexes underlying standardized index
options and other indexes that meet
certain specified criteria; and (b) allow
members to calculate the position
limits, in accordance with volume and
float criteria specified by the options
exchanges, for conventional equity
options overlying securities that are part
of the FTSE All-World Index Series.3
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The Financial Times and the London Stock
Exchange operate the FTSE All-World Index Series,
1 15
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
6117
The text of the proposed rule change is
available on the NASD’s Web site (http:
//www.nasd.com), at the NASD’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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 Exchange 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
Amendment to Definition of
‘‘Underlying Index’’: NASD Rule 2860
governs the activities of members in
standardized and conventional options
contracts. Paragraph (b)(5) of Rule 2860
imposes a position-reporting obligation
on members when they or their
customers establish options positions
that exceed certain thresholds.
Specifically, members are required to
file, or cause to be filed, a report with
NASD with respect to each account that
establishes an aggregate position of 200
or more contracts on the same side of
the market covering the same
underlying security or index. The
current definition of ‘‘underlying index’’
is limited to an index upon which a
Nasdaq index option is based.4 Since
Nasdaq no longer trades any index
options, this definition fails to require
members to report positions in
conventional index options. The
proposed rule change would require
members to report positions in
conventional 5 index options and would
require access firms to report position
limits in standardized index options.6 In
which covers approximately 30 different countries
and over 1900 stocks.
4 Nasdaq briefly traded stock index options in the
mid-1980s.
5 A ‘‘conventional option’’ is an option contract
not issued or subject to issuance by the Options
Clearing Corporation. See Rule 2860(b)(2)(N).
6 As noted in Notice to Members 01–01, the
options position reporting requirements are
applicable to all standardized options positions
established by ‘‘access’’ firms or their customers
and all conventional options positions established
by members or their customers. Access firms, in
this context, are understood to be NASD members
E:\FR\FM\06FEN1.SGM
Continued
06FEN1
]]>Agencies
[Federal Register Volume 71, Number 24 (Monday, February 6, 2006)]
[Notices]
[Pages 6116-6117]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1537]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53187; File No. SR-NASD-2006-006]
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 the Hours of
Operation of Nasdaq's Brut System
January 30, 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 January 20, 2006, 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 Nasdaq. Nasdaq 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. On January
25, 2006, the Amex filed Amendment No. 1 to the proposed rule
change.\4\ 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\ Amendment No. 1 clarified that the filing was made pursuant
to section 19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(6)
thereunder.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to amend NASD Rule 4912. The text of the proposed
rule change is below. Additions are italicized; deletions are
[bracketed].\5\
---------------------------------------------------------------------------
\5\ Changes are marked to the rule text that appears in the
electronic NASD Manual found at https://www.nasd.com. Prior to the
date when The NASDAQ Stock Market LLC (``NASDAQ LLC'') commences
operations, NASDAQ LLC will file a conforming change to the rules of
NASDAQ LLC approved in Securities Exchange Act Release No. 53128
(January 13, 2006).
---------------------------------------------------------------------------
* * * * *
4912. Normal Business Hours
The Brut System operates from [6:30] 7:30 a.m. to 8:00 p.m. Eastern
Time on each business day.
* * * * *
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 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. 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
Nasdaq proposes to modify the starting time for the Brut ECN hours
of operation, order acceptance time, from 6:30 a.m. to 7:30 a.m.
(Eastern Time). This change will standardize the system start times of
the Nasdaq Market Center and Nasdaq's Brut Facility.
The current configuration allows connectivity and order entry from
the time the System is brought online beginning at 6:30 a.m., which
allows orders and executions to begin at 6:30 a.m.\6\
---------------------------------------------------------------------------
\6\ Phone call from Jonathan Cayne, Associate General Counsel,
Nasdaq, to Angela R. Muehr, Attorney, Commission, on January 27,
2006.
---------------------------------------------------------------------------
The proposed amendment would:
(1) Allow client connection from System up time, scheduled to begin
at 6:30 a.m. (this process takes 10-15 minutes);
(2) Reject orders entered prior to 7:30 a.m.;
(3) Allow orders and executions beginning at 7:30 a.m.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
section 15A of the Act,\7\ in general, and furthers the objectives of
section 15A(b)(6) of the Act,\8\ in particular, in that it is designed
to protect investors and the public interest.
---------------------------------------------------------------------------
\7\ 7 15 U.S.C. 78o-3.
\8\ 8 15 U.S.C. 78o-3(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq 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 on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Nasdaq has filed the proposed rule change pursuant to section
19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\10\ Because the foregoing proposed rule change: (1) Does
not significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) does not 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, the proposed rule
change has become effective pursuant to section 19(b)(3)(A) of the Act
and Rule 19b-4(f)(6) thereunder. As required under Rule 19b-
4(f)(6)(iii), Nasdaq provided the Commission with written notice of its
intent to file the proposed rule change at least five business days
prior to filing the proposal with the Commission or such shorter period
as designated by the Commission.
---------------------------------------------------------------------------
\9\ 9 15 U.S.C. 78s(b)(3)(A).
\10\ 10 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the
[[Page 6117]]
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\
---------------------------------------------------------------------------
\11\ The effective date of the original proposed rule change is
January 20, 2006 and the effective date of Amendment No. 1 is
January 25, 2006. The proposed rule change does not become operative
for 30 days from the date of filing. For purposes of calculating the
60-day period within which the Commission may summarily abrogate the
proposed rule change, as amended, under section 19(b)(3)(C) of the
Act, the Commission considers the period to commence on January 25,
2006, the date on which Nasdaq submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASD-2006-006 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 20549-1090.
All submissions should refer to File Number SR-NASD-2006-006. 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 Nasdaq. 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-2006-006 and should be submitted on or before
February 27, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-1537 Filed 2-3-06; 8:45 am]
BILLING CODE 8010-01-P
