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]

Download as PDF 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). VerDate Aug<31>2005 16:59 Apr 24, 2006 Jkt 208001 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 (http://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 (http://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 Fmt 4703 3 17 Sfmt 4703 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 * * * * * wwhite on PROD1PC65 with NOTICES 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. VerDate Aug<31>2005 16:59 Apr 24, 2006 Jkt 208001 (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 E:\FR\FM\25APN1.SGM 25APN1 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 (http://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). VerDate Aug<31>2005 16:59 Apr 24, 2006 April 18, 2006. 10 17 Jkt 208001 PO 00000 CFR 200.30–3(a)(12). Frm 00084 Fmt 4703 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 (http://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 Sfmt 4703 23977 E:\FR\FM\25APN1.SGM 25APN1

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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78o-3.
    \7\ 15 U.S.C. 78o-3(6).

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

[[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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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 (http://
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 (http://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.
---------------------------------------------------------------------------

    \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