Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Maximum Single Order Share Amount in Nasdaq's INET Facility, 25875-25876 [E6-6556]

Download as PDF Federal Register / Vol. 71, No. 84 / Tuesday, May 2, 2006 / Notices • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–MSRB–2006–03 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–MSRB–2006–03. 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 MSRB’s offices. 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–MSRB– 2006–03 and should be submitted on or before May 23, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.50 Nancy M. Morris, Secretary. [FR Doc. E6–6555 Filed 5–1–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53720; File No. SR–NASD– 2006–051] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Maximum Single Order Share Amount in Nasdaq’s INET Facility April 25, 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 19, 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. 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 expand the single order maximum share amount in its INET Facility to 999,999 shares. Nasdaq will implement the proposed rule change immediately. The text of the proposed rule change is below. Proposed new language is in italics; deletions are in [brackets].4 4953. Order Entry Parameters (a) INET System Orders (1)–(3) No Change. (4) Any order in whole shares up to 999,999 shares may be entered into the System for normal execution processing. * * * * * 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 Changes are marked to the rule text that appears in the electronic NASD Manual found at http:// 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). rmajette on PROD1PC67 with NOTICES 2 17 50 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:18 May 01, 2006 Jkt 208001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 25875 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’s INET Facility currently operates using a 200,000 share maximum single order limit for orders sent to the New York Stock Exchange’s DOT system. For all other orders, INET applies a 999,999 share single order maximum share amount. Nasdaq proposes to codify for its INET Facility a maximum single order share amount standard, for all orders, of 999,999 shares, the same share number maximum already in place in the Nasdaq Market Center.5 The proposed rule change will ensure that the INET system provides an adequate and uniform capability to accept large-size orders as well as reduce technological complexity for Nasdaq and users of its systems by enhancing the degree of uniformity among single order share maximums across its systems.6 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 prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, remove impediments to a free and open market and a national market system, and, in general, 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 5 See NASD Rule 4706(d)(1). single order maximum share number limit for Nasdaq’s Brut Facility shall remain 1,000,099 shares. See NASD Rule 4903(f). 7 15 U.S.C. 78o–3. 8 15 U.S.C. 78o–3(6). 6 The E:\FR\FM\02MYN1.SGM 02MYN1 25876 Federal Register / Vol. 71, No. 84 / Tuesday, May 2, 2006 / Notices necessary or appropriate in furtherance of the purposes of the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Electronic Comments [Release No. 34–53730; File No. SR–NASD– 2006–054] Written comments 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. Nasdaq has requested that the Commission waive 30-day delayed operational date provisions contained in the above rule, based upon a representation that the proposed rule filing would ensure that INET users have the beneficial capability to enter larger size orders as soon as practicable. For this reason, the Commission designates the proposal to be effective and operative upon filing with the Commission. 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. rmajette on PROD1PC67 with NOTICES 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. 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 10 17 VerDate Aug<31>2005 15:18 May 01, 2006 • 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–2006–051 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. April 26, 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 21, 2006, the National Association of All submissions should refer to File Securities Dealers, Inc. (‘‘NASD’’), Number SR–NASD–2006–051. This file through its subsidiary, The Nasdaq number should be included on the subject line if e-mail is used. To help the Stock Market, Inc. (‘‘Nasdaq’’), filed with the Securities and Exchange Commission process and review your Commission (‘‘Commission’’) the comments more efficiently, please use proposed rule change as described in only one method. The Commission will Items I and II below, which Items have post all comments on the Commission’s been prepared by Nasdaq. Nasdaq has Internet Web site (http://www.sec.gov/ filed this proposal pursuant to Section rules/sro.shtml). Copies of the 19(b)(3)(A) of the Act 3 and Rule 19bsubmission, all subsequent 4(f)(6) thereunder,4 which renders the amendments, all written statements proposal effective upon filing with the with respect to the proposed rule Commission.5 The Commission is change that are filed with the publishing this notice to solicit Commission, and all written comments on the proposed rule change communications relating to the from interested persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s Statement of the Terms of Substance of those that may be withheld from the the Proposed Rule Change public in accordance with the Nasdaq has filed with the provisions of 5 U.S.C. 552, will be Commission a proposed rule change for available for inspection and copying in the handling by Nasdaq’s INET and Brut the Commission’s Public Reference Room. Copies of such filing also will be systems of sub-penny orders priced under $1.00 for securities listed on the available for inspection and copying at New York Stock Exchange LLC the principal office of Nasdaq. All (‘‘NYSE’’) or the American Stock comments received will be posted Exchange LLC (‘‘Amex’’). Nasdaq has without change; the Commission does made this filing at the request of the not edit personal identifying Commission staff. The text of the information from submissions. You proposed rule change is below. should submit only information that Proposed new language is in italics; you wish to make available publicly. All proposed deletions are in [brackets].6 submissions should refer to File * * * * * Number SR–NASD–2006–051 and should be submitted on or before May 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 23, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–6556 Filed 5–1–06; 8:45 am] BILLING CODE 8010–01–P 11 17 Jkt 208001 Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change for Handling by INET and Brut of Sub-Penny Orders in Securities Listed on the New York Stock Exchange LLC or the American Stock Exchange LLC PO 00000 CFR 200.30–3(a)(12). Frm 00066 Fmt 4703 Sfmt 4703 3 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 5 On March 31, 2006, Nasdaq filed this rule proposal without designating it as immediately effective. See SR–NASD–2006–042. At the request of the Commission staff, Nasdaq has withdrawn that filing. 6 Changes are marked to the rule text that appears in the electronic NASD Manual found at 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 4 17 E:\FR\FM\02MYN1.SGM 02MYN1

Agencies

[Federal Register Volume 71, Number 84 (Tuesday, May 2, 2006)]
[Notices]
[Pages 25875-25876]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6556]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53720; File No. SR-NASD-2006-051]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Expand the Maximum Single Order Share Amount in Nasdaq's 
INET Facility

 April 25, 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 19, 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. 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).
---------------------------------------------------------------------------

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

    Nasdaq proposes to expand the single order maximum share amount in 
its INET Facility to 999,999 shares. Nasdaq will implement the proposed 
rule change immediately. The text of the proposed rule change is below. 
Proposed new language is in italics; deletions are in [brackets].\4\
---------------------------------------------------------------------------

    \4\ Changes are marked to the rule text that appears in the 
electronic NASD Manual found at http://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).
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4953. Order Entry Parameters

    (a) INET System Orders
    (1)-(3) No Change.
    (4) Any order in whole shares up to 999,999 shares may be entered 
into the System for normal execution processing.
* * * * *

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's INET Facility currently operates using a 200,000 share 
maximum single order limit for orders sent to the New York Stock 
Exchange's DOT system. For all other orders, INET applies a 999,999 
share single order maximum share amount. Nasdaq proposes to codify for 
its INET Facility a maximum single order share amount standard, for all 
orders, of 999,999 shares, the same share number maximum already in 
place in the Nasdaq Market Center.\5\ The proposed rule change will 
ensure that the INET system provides an adequate and uniform capability 
to accept large-size orders as well as reduce technological complexity 
for Nasdaq and users of its systems by enhancing the degree of 
uniformity among single order share maximums across its systems.\6\
---------------------------------------------------------------------------

    \5\ See NASD Rule 4706(d)(1).
    \6\ The single order maximum share number limit for Nasdaq's 
Brut Facility shall remain 1,000,099 shares. See NASD Rule 4903(f).
---------------------------------------------------------------------------

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 prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, remove impediments to a free 
and open market and a national market system, and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3.
    \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

[[Page 25876]]

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 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. Nasdaq has requested that the 
Commission waive 30-day delayed operational date provisions contained 
in the above rule, based upon a representation that the proposed rule 
filing would ensure that INET users have the beneficial capability to 
enter larger size orders as soon as practicable. For this reason, the 
Commission designates the proposal to be effective and operative upon 
filing with the Commission.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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 rule-comments@sec.gov. Please include 
File Number SR-NASD-2006-051 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-2006-051. 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 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-2006-051 and should be submitted on or before May 
23, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-6556 Filed 5-1-06; 8:45 am]
BILLING CODE 8010-01-P