Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Brut's Routing Order Process, 23975-23977 [E6-6126]
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Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices
justified and consistent with the rules of
the Exchange.
The Exchange notes that the Amex, in
recent years, has revised a number of
fees to better align Exchange fees with
the actual cost of delivering services and
reduce Exchange subsidies of such
services. Amex believes that the
implementation of this proposal is
consistent with the reduction and/or
elimination of these subsidies. Amex
also believes that these fees will help to
allocate to those market participants
engaging in transactions in FPX options,
a fair share of the related costs of
offering such options.
The Exchange asserts that the
proposal is equitable as required by
Section 6(b)(4) of the Act.6 In
connection with the adoption of an
options licensing fee for FPX options,
the Exchange believes that charging an
options licensing fee, where applicable,
to all market participant orders except
for customer orders is reasonable, given
the competitive pressures in the
industry. Accordingly, the Exchange
seeks, through this proposal, to better
align its transaction charges with the
cost of providing products.
2. Statutory Basis
Amex believes that the proposed fee
change is consistent with Section 6(b)(4)
of the Act 7 regarding the equitable
allocation of reasonable dues, fees and
other charges among exchange members
and other persons using exchange
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Amex believes that the proposed rule
change does not impose 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
No written comments were solicited
or received with respect to the proposed
rule change.
wwhite on PROD1PC65 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and Rule 19b–
6 Section 6(b)(4) states that the rules of a national
securities exchange provide for the equitable
allocation of reasonable dues, fees, and other
charges among its members and issuers and other
persons using its facilities.
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
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4(f)(2) thereunder,9 because it
establishes or changes a due, fee, or
other charge imposed by the selfregulatory organization.
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.
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–Amex–2006–36 on the
subject line.
23975
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2006–36 and should
be submitted on or before May 16, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–6146 Filed 4–24–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53675; File No. SR–NASD–
2006–049]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding Brut’s Routing
Order Process
April 18, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on April 13,
• Send paper comments in triplicate
2006, the National Association of
to Nancy M. Morris, Secretary,
Securities Dealers, Inc., through its
Securities and Exchange Commission,
subsidiary, The Nasdaq Stock Market,
100 F Street, NE., Washington, DC
Inc. (‘‘Nasdaq’’), filed with the
20549–1090.
Securities and Exchange Commission
All submissions should refer to File
(‘‘SEC’’ or the ‘‘Commission’’) the
Number SR–Amex–2006–36. This file
proposed rule change as described in
number should be included on the
Items I, II and III below, which items
subject line if e-mail is used. To help the have been prepared by Nasdaq. Nasdaq
Commission process and review your
has designated the proposed rule change
comments more efficiently, please use
as a ‘‘non-controversial’’ rule change
only one method. The Commission will pursuant to Rule 19b–4(f)(6) under the
post all comments on the Commission’s Act,3 which renders the proposal
Internet Web site (https://www.sec.gov/
effective upon filing with the
rules/sro.shtml). Copies of the
Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons.
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
Commission and any person, other than
The text of the proposed rule change
those that may be withheld from the
is below. Proposed new language is in
public in accordance with the
italics; proposed deletions are in
provisions of 5 U.S.C. 552, will be
[brackets].
available for inspection and copying in
*
*
*
*
*
the Commission’s Public Reference
Room. Copies of such filing also will be 4714. Routing—Nasdaq-Listed
Securities
available for inspection and copying at
the principal office of the Amex. All
(a)–(b)—No Change
comments received will be posted
without change; the Commission does
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
not edit personal identifying
2 17
9 17
PO 00000
CFR 240.19b–4(f)(2).
Frm 00082
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3 17
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E:\FR\FM\25APN1.SGM
CFR 240.19b–4.
CFR 240.19b–4(f)(6).
25APN1
23976
Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices
(c) In the event an order becomes nonmarketable while it is in the execution
queue, or the order is not marketable
upon return to Nasdaq, the order shall
be included in the Nasdaq Market
Center book (if consistent with the
order’s time in force condition) in
accordance with the time priority
established by the time-stamp assigned
to the order when it was initially
submitted to the Nasdaq Market Center.
Once an order is placed in the Nasdaq
Market Center book it shall not be
routed outside the Nasdaq Market
Center unless otherwise instructed.
(d)–(f) No Change
*
*
*
*
*
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4905. Order Processing
(a) Brut Book Order Process—No
Change
(b) Brut Order Routing Process
(1) No Change
(2) With the exception of Thru Brut
and Directed Cross Orders that
specifically direct to which market
center an order is to be routed, [orders
routed out of the Brut System to other
market centers for potential execution
are generally delivered to other market
centers in price/size priority. If the
routed order is smaller in size than the
total combined displayed share amounts
of accessible market centers at the best
price level, the Brut System delivers the
routed order to the available market
centers in price/size priority. If the
routed order is larger than the total
combined displayed share amounts of
accessible market centers at the best
price level, the Brut System delivers
over-sized orders to each displayed
market center’s quote in proportion to
the individual market’s center share of
that total displayed share amount.] if an
order for a security is not executed in its
entirety in the Brut System and such
order is designated for routing, the order
(or the unfilled portion thereof—referred
to hereinafter as an ‘‘order’’) shall be
processed as follows:
(A) The order shall be routed to other
markets accessible through the Brut
System router at a price better than the
Orders available in the Brut System as
a limit order. Routed orders shall be
executed pursuant to the rules and
regulations of the destination market.
(B) In the event an order routed from
the Brut System to another market is not
executed in its entirety, the remaining
portion of the order shall be returned to
the Brut System and shall be eligible for
execution, or re-routing, if marketable.
A market order that is converted to a
limit order for routing will become a
market order again upon return to the
Brut System.
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(C) In the event an order becomes
non-marketable while it is in the
execution queue, or the order is not
marketable upon return to the Brut
System, the order shall be included in
the Brut System book (if consistent with
the order’s time in force condition) in
accordance with the time priority
established by the time-stamp assigned
to the order when it is returned to the
Brut System. Once an order is placed in
the Brut System book it shall not be
routed outside the Brut System unless
otherwise instructed.
(D) An order that has been routed to
another market shall have no time
standing in the Brut System execution
queue relative to other orders in the Brut
System. A request from a Brut
Participant to cancel an order while it
is outside the Brut System shall be
processed subject to the applicable rules
of the market to which the order has
been routed.
[(3) In the event an order routed to
another market center is not executed in
its entirety, the remaining portion of the
order shall be returned to the System
and, if upon return the order is
marketable against a System order then
priced at the NBBO, it will be subjected
to Brut Book Process prior to any further
routing.
(4) An order that has been routed to
another market shall have no time
standing in the System execution queue
relative to other orders in the System. A
request from a Participant to cancel an
order while it is outside the System
shall be processed subject to the
applicable rules of the market center to
which the order has been routed.]
*
*
*
*
*
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 represents that the purpose of
the proposed rule change is to modify
the rule language pertaining to routing
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
to external venues through the Brut
service to conform more closely with
the rule language pertaining to routing
to external venues through the Nasdaq
Market Center.4 The one corresponding
change to Nasdaq’s routing language is
necessary for clarification purposes so
as to more accurately reflect the current
routing process and does not indicate an
actual system change.5 Currently, Brut’s
rules describe the algorithm used for
determining to which routing
destination and for how many shares
Brut will send orders. Nasdaq believes
that this limits Brut’s ability to adjust its
routing algorithm to achieve optimal
routing results.
By adopting language more consistent
with Nasdaq’s routing rules, Nasdaq
represents that Brut will have more
flexibility to adjust its routing algorithm
based on a number of factors, including:
speed, certainty of execution, potential
of reserve shares, and cost. As such,
Nasdaq believes that the proposed rule
change would promote uniformity
between Nasdaq-operated trading
systems and provide the capacity to
adopt the same routing logic in
anticipation of the eventual integration
of these systems into a single trading
platform.
The rule differs slightly from Nasdaq’s
routing rules, however, in that the Brut
system uses the timestamp of an order
when it is returned to the Brut system
for ranking the order on the book,
whereas the Nasdaq Market Center uses
the order’s original timestamp. Nasdaq
believes that this difference is not
significant and that it would be too
costly to conform this feature in the Brut
system in light of the imminent
integration of the systems.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 15A of the Act,6 in
general and with Section 15A(b)(6) of
the Act,7 in particular, in that it is
designed to foster coordination and
cooperation with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities.
Nasdaq believes the proposal is
consistent with this obligation because
it is designed to improve the routing
process by making it more efficient and
offering subscribers more routing
options.
4 See
NASD Rule 4714.
NASD Rule 4706.
6 15 U.S.C. 78o–3.
7 15 U.S.C. 78o–3(6).
5 See
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Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices
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, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Nasdaq has designated the foregoing
rule change as a ‘‘non-controversial’’
rule change pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder 9 because the rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; or (iii) become
operative for 30 days from the day 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.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
All submissions should refer to File
Number SR–NASD–2006–049. 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 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–2006–049 and
should be submitted on or before May
16, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–6126 Filed 4–24–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53673; File No. SR–Phlx–
2005–80]
wwhite on PROD1PC65 with NOTICES
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Order Granting Accelerated Approval
to a Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Automated Delivery and Handling
of Stop and Stop-Limit Orders
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
I. Introduction
On December 15, 2005, the
Philadelphia Stock Exchange, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) pursuant to section
19(b)(1) of the Securities Exchange Act
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
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16:59 Apr 24, 2006
April 18, 2006.
10 17
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CFR 200.30–3(a)(12).
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II. Description of the Proposal
The Phlx proposed to amend Phlx
Rules 1066(c)(1) and 1080(b)(i)(A) and
(C), and to delete Options Floor
Procedure Advices (‘‘OFPAs’’) A–5 and
A–6, to permit customer and off-floor
broker-dealer stop 5 and stop-limit 6
orders in options to be delivered via the
Exchange’s Automated Options Market
(‘‘AUTOM’’) System 7 and to be handled
electronically. The Exchange also
proposed to amend Phlx Rule
1080(b)(i)(A) to include the definition of
‘‘agency order’’ in the rule and to delete
certain provisions in the Exchange’s
rules that were either redundant or no
longer practical.
III. Discussion
The Commission has reviewed the
proposed rule change, as amended, and
finds that it is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.8 In
particular, the Commission finds the
U.S.C. 78s(b)(l).
CFR 240.19b–4.
3 Amendment No. 1, which replaced the original
filing in its entirety, added clarifying language to
the description of the proposed rule change and
adopted a definition of ‘‘agency order’’ in Phlx Rule
1080(b)(i)(A).
4 See Securities Exchange Act Release No. 53514
(March 17, 2006), 71 FR 15240 (March 27, 2006).
5 A stop order is a contingency order to buy or
sell when the market for a particular option contract
reaches a specified price. A stop order to buy
becomes a market order when the option contract
trades or is bid at or above the stop price. A stop
order to sell becomes a market order when the
option contract trades or is offered at or below the
stop price. See Phlx Rule 1066(c)(1).
6 A stop-limit order is a contingency order to buy
or sell at a limited price when the market for a
particular option contract reaches a specified price.
A stop limit order to buy becomes a limit order
executable at the limit price or better when the
option contract trades or is bid at or above the stoplimit price. A stop limit order to sell becomes a
limit order executable at the limit price or better
when the option contract trades or is offered at or
below the stop limit price. See id.
7 See Phlx Rule 1080.
8 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
2 17
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–2006–049 on the
subject line.
8 15
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 the proposed rule change
relating to the automated delivery and
handling of stop and stop-limit orders.
On March 6, 2006, Phlx filed
Amendment No. 1 to the proposed rule
change with the Commission.3 The
proposed rule change, as amended, was
published for comment in the Federal
Register on March 27, 2006.4 The
Commission received no comments on
the proposal. This order approves the
proposed rule change, as amended, on
an accelerated basis.
1 15
BILLING CODE 8010–01–P
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]]>Agencies
[Federal Register Volume 71, Number 79 (Tuesday, April 25, 2006)]
[Notices]
[Pages 23975-23977]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6126]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53675; File No. SR-NASD-2006-049]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Regarding Brut's Routing Order Process
April 18, 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 April 13, 2006, the National Association of Securities Dealers,
Inc., through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), filed with the Securities and Exchange Commission
(``SEC'' or the ``Commission'') the proposed rule change as described
in Items I, II and III below, which items have been prepared by Nasdaq.
Nasdaq has designated the proposed rule change as a ``non-
controversial'' rule change pursuant to Rule 19b-4(f)(6) under the
Act,\3\ which renders the proposal effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in [brackets].
* * * * *
4714. Routing--Nasdaq-Listed Securities
(a)-(b)--No Change
[[Page 23976]]
(c) In the event an order becomes non-marketable while it is in the
execution queue, or the order is not marketable upon return to Nasdaq,
the order shall be included in the Nasdaq Market Center book (if
consistent with the order's time in force condition) in accordance with
the time priority established by the time-stamp assigned to the order
when it was initially submitted to the Nasdaq Market Center. Once an
order is placed in the Nasdaq Market Center book it shall not be routed
outside the Nasdaq Market Center unless otherwise instructed.
(d)-(f) No Change
* * * * *
4905. Order Processing
(a) Brut Book Order Process--No Change
(b) Brut Order Routing Process
(1) No Change
(2) With the exception of Thru Brut and Directed Cross Orders that
specifically direct to which market center an order is to be routed,
[orders routed out of the Brut System to other market centers for
potential execution are generally delivered to other market centers in
price/size priority. If the routed order is smaller in size than the
total combined displayed share amounts of accessible market centers at
the best price level, the Brut System delivers the routed order to the
available market centers in price/size priority. If the routed order is
larger than the total combined displayed share amounts of accessible
market centers at the best price level, the Brut System delivers over-
sized orders to each displayed market center's quote in proportion to
the individual market's center share of that total displayed share
amount.] if an order for a security is not executed in its entirety in
the Brut System and such order is designated for routing, the order (or
the unfilled portion thereof--referred to hereinafter as an ``order'')
shall be processed as follows:
(A) The order shall be routed to other markets accessible through
the Brut System router at a price better than the Orders available in
the Brut System as a limit order. Routed orders shall be executed
pursuant to the rules and regulations of the destination market.
(B) In the event an order routed from the Brut System to another
market is not executed in its entirety, the remaining portion of the
order shall be returned to the Brut System and shall be eligible for
execution, or re-routing, if marketable. A market order that is
converted to a limit order for routing will become a market order again
upon return to the Brut System.
(C) In the event an order becomes non-marketable while it is in the
execution queue, or the order is not marketable upon return to the Brut
System, the order shall be included in the Brut System book (if
consistent with the order's time in force condition) in accordance with
the time priority established by the time-stamp assigned to the order
when it is returned to the Brut System. Once an order is placed in the
Brut System book it shall not be routed outside the Brut System unless
otherwise instructed.
(D) An order that has been routed to another market shall have no
time standing in the Brut System execution queue relative to other
orders in the Brut System. A request from a Brut Participant to cancel
an order while it is outside the Brut System shall be processed subject
to the applicable rules of the market to which the order has been
routed.
[(3) In the event an order routed to another market center is not
executed in its entirety, the remaining portion of the order shall be
returned to the System and, if upon return the order is marketable
against a System order then priced at the NBBO, it will be subjected to
Brut Book Process prior to any further routing.
(4) An order that has been routed to another market shall have no
time standing in the System execution queue relative to other orders in
the System. A request from a Participant to cancel an order while it is
outside the System shall be processed subject to the applicable rules
of the market center to which the order has been routed.]
* * * * *
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 represents that the purpose of the proposed rule change is
to modify the rule language pertaining to routing to external venues
through the Brut service to conform more closely with the rule language
pertaining to routing to external venues through the Nasdaq Market
Center.\4\ The one corresponding change to Nasdaq's routing language is
necessary for clarification purposes so as to more accurately reflect
the current routing process and does not indicate an actual system
change.\5\ Currently, Brut's rules describe the algorithm used for
determining to which routing destination and for how many shares Brut
will send orders. Nasdaq believes that this limits Brut's ability to
adjust its routing algorithm to achieve optimal routing results.
---------------------------------------------------------------------------
\4\ See NASD Rule 4714.
\5\ See NASD Rule 4706.
---------------------------------------------------------------------------
By adopting language more consistent with Nasdaq's routing rules,
Nasdaq represents that Brut will have more flexibility to adjust its
routing algorithm based on a number of factors, including: speed,
certainty of execution, potential of reserve shares, and cost. As such,
Nasdaq believes that the proposed rule change would promote uniformity
between Nasdaq-operated trading systems and provide the capacity to
adopt the same routing logic in anticipation of the eventual
integration of these systems into a single trading platform.
The rule differs slightly from Nasdaq's routing rules, however, in
that the Brut system uses the timestamp of an order when it is returned
to the Brut system for ranking the order on the book, whereas the
Nasdaq Market Center uses the order's original timestamp. Nasdaq
believes that this difference is not significant and that it would be
too costly to conform this feature in the Brut system in light of the
imminent integration of the systems.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\6\ in general and with
Section 15A(b)(6) of the Act,\7\ in particular, in that it is designed
to foster coordination and cooperation with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities. Nasdaq believes the
proposal is consistent with this obligation because it is designed to
improve the routing process by making it more efficient and offering
subscribers more routing options.
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\6\ 15 U.S.C. 78o-3.
\7\ 15 U.S.C. 78o-3(6).
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[[Page 23977]]
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, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Nasdaq has designated the foregoing rule change as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act
\8\ and Rule 19b-4(f)(6) thereunder \9\ because the rule change does
not: (i) Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; or (iii)
become operative for 30 days from the day 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change 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-2006-049 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-2006-049. 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 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-2006-049 and should be submitted on or before May 16, 2006.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
[FR Doc. E6-6126 Filed 4-24-06; 8:45 am]
BILLING CODE 8010-01-P
