Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Declaration of Effectiveness of the Fingerprint Plan of the National Association of Securities Dealers, Inc., 27299-27300 [E6-7100]

Download as PDF Federal Register / Vol. 71, No. 90 / Wednesday, May 10, 2006 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding, or (ii) as to which Amex consents, the Commission will: (A) By order approve such proposed rule change; or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR–Amex–2006–34 and should be submitted on or before May 31, 2006. 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: SECURITIES AND EXCHANGE COMMISSION rmajette on PROD1PC67 with NOTICES 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–2006–34 on the subject line. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.5 Nancy M. Morris, Secretary. [FR Doc. E6–7105 Filed 5–9–06; 8:45 am] BILLING CODE 8010–01–P [Release No. 34–53751] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Declaration of Effectiveness of the Fingerprint Plan of the National Association of Securities Dealers, Inc. May 2, 2006. On May 1, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) an amended fingerprinting plan (‘‘Amended Plan’’) pursuant to Paper Comments Rule 17f–2(c) 1 under the Securities Exchange Act of 1934 (‘‘Act’’).2 The • Send paper comments in triplicate Amended Plan 3 supersedes and to Nancy M. Morris, Secretary, replaces the NASD’s current Securities and Exchange Commission, fingerprinting plan.4 Station Place, 100 F Street, NE, The NASD believes that the Amended Washington, DC 20549–1090. Plan will be an improvement over the All submissions should refer to File current NASD fingerprinting plan. It Number SR–Amex–2006–34. This file permits the NASD to record in the number should be included on the subject line if e-mail is used. To help the Central Registration Depository (‘‘CRD’’) the status of fingerprints submitted to Commission process and review your the Attorney General. Through the CRD comments more efficiently, please use only one method. The Commission will system, NASD makes available to a post all comments on the Commission’s member or other securities industry participant that has submitted Internet Web site (http://www.sec.gov/ fingerprints the status and results of rules/sro.shtml). Copies of the such fingerprints after submission to the submission, all subsequent Attorney General. In addition, the amendments, all written statements NASD has made other minor clarifying with respect to the proposed rule and typographical revisions. change that are filed with the Under the NASD’s current Commission, and all written fingerprinting plan, members or other communications relating to the securities industry participants submit proposed rule change between the Commission and any person, other than fingerprints and identifying information, on paper or electronically, those that may be withheld from the to the NASD, which then forwards the public in accordance with the cards to the Federal Bureau of provisions of 5 U.S.C. 552, will be available for inspection and copying in 5 17 CFR 200.30–3(a)(12). the Commission’s Public Reference 1 17 CFR 240.17f–2(c). Room. Copies of such filing also will be 2 15 U.S.C. 78a et seq. available for inspection and copying at 3 Attached hereto as Exhibit A. the principal office of Amex. All 4 The Commission declared the current fingerprint plan of the NASD effective in 1988. comments received will be posted VerDate Aug<31>2005 14:59 May 09, 2006 Jkt 208001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 27299 Investigation (‘‘FBI’’) (the fingerprint processing arm of the Office of the Attorney General of the United States). The FBI identifies submitted fingerprints, retrieves relevant criminal history information, and returns fingerprint reports (including the original paper fingerprint cards, if any) to the NASD. Under the terms of the Amended Plan, the member or other securities industry participant will be able to view the status and results of fingerprints, including any relevant criminal history information, through the CRD system. The Commission has reviewed the procedures detailed in the Amended Plan and believes that the Amended Plan is consistent with the public interest and the protection of investors. Enabling members or other securities industry participants to view the status and results of fingerprints, including relevant criminal history information, through the CRD system should improve the efficiency of members or other securities industry participants in identifying persons who may be subject to statutory disqualification more rapidly. Thus, the Commission declares the Amended Plan to be effective. The Commission notes that securities industry fingerprinting procedures are in a state of flux due to rapidly advancing technology. In the event that an industry-wide standard is adopted or becomes prevalent and in the event that this Amended Plan substantially differs therefrom, the Commission would expect the NASD to revise its fingerprinting plan to incorporate the industry-wide standard. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.5 Nancy M. Morris, Secretary. Exhibit A—National Association of Securities Dealers, Incorporated; Fingerprint Plan National Association of Securities Dealers, Inc. (‘‘NASD’’) submits this Fingerprint Plan (‘‘Plan’’) pursuant to Rule 17f–2(c) under the Securities Exchange Act of 1934 (‘‘Exchange Act’’). This Plan supersedes and replaces the NASD’s Fingerprint Plan approved by the Securities and Exchange Commission (‘‘Commission’’) on June 22, 1976, and as amended thereafter. The purpose of this Plan is to facilitate securities industry participants’ compliance with Section 17(f)(2) of the Exchange Act and Rule 17f–2 thereunder, by providing a facility for securities industry participants to 5 17 CFR 200.30–3(a)(17)(iii). E:\FR\FM\10MYN1.SGM 10MYN1 rmajette on PROD1PC67 with NOTICES 27300 Federal Register / Vol. 71, No. 90 / Wednesday, May 10, 2006 / Notices have the fingerprints of their partners, directors, officers, and employees processed by the Attorney General of the United States or his designee (hereinafter ‘‘Attorney General’’) as required by Section 17(f)(2) and Rule 17f–2, thereunder. NASD, pursuant to a Plan filed with and declared effective by the Commission, processes fingerprint records of securities industry participants as described herein consistent with those provisions. NASD accepts fingerprints and identifying information from member firms and other securities industry participants required to be fingerprinted pursuant to Rule 17f–2. Securities industry participants may submit fingerprints and identifying information on paper or electronically, provided such submissions are consistent with protocols and requirements established by the Attorney General. NASD accepts a single set of fingerprints and identifying information for an associated person in lieu of separate fingerprint submissions by affiliated NASD member firms with which the individual is associated in satisfaction of the Section 17(f)(2) fingerprinting requirement, provided that the NASD affiliate member firms are under common ownership or control as reported on Form BD, and that affiliate information is provided with the initial application for registration. NASD transmits fingerprints and identifying information, on paper or electronically, to the Attorney General for identification and processing, consistent with protocols and requirements established by the Attorney General. NASD receives processed results from the Attorney General (on paper or electronically) and transmits those results via paper or electronic means to authorized recipients (i.e., to a member or other securities industry participant that submitted the fingerprints and to regulators for licensing, registration and other regulatory purposes), consistent with protocols and requirements established by the Attorney General. In cases where the Attorney General’s search on the fingerprints submitted fails to disclose prior arrest data, NASD transmits that result to the securities industry participant that submitted the fingerprints. In cases where the Attorney General’s search yields Criminal History Record Information (CHRI), NASD transmits that information to the securities industry participant that submitted the fingerprints. With respect to members, NASD also reviews any CHRI returned by the Attorney General to identify persons who may be subject to statutory VerDate Aug<31>2005 14:59 May 09, 2006 Jkt 208001 disqualification under the Exchange Act and to take action, as appropriate, with respect to such persons. NASD advises its members and member applicants of the availability of fingerprint services and any fees charged by NASD in connection with those services and the processing of fingerprints pursuant to this Plan. NASD will file any such NASD member fees with the Commission pursuant to Section 19(b) of the Exchange Act. NASD maintains copies of fingerprint processing results received from the Attorney General with respect to fingerprints submitted by NASD pursuant to this Plan, in accordance with NASD’s Record Retention Plan filed with the Commission. Any maintenance of fingerprint records by NASD shall be for NASD’s own administrative purposes, and NASD is not undertaking to maintain fingerprint records on behalf of NASD members pursuant to Rule 17f–2(d)(2). NASD records in the Central Registration Depository (CRD) the status of fingerprints submitted to the Attorney General. Through the CRD system, NASD makes available to a member that has submitted fingerprints the status and results of such fingerprints after submission to the Attorney General. NASD shall not be liable for losses or damages of any kind in connection with its fingerprinting services, as a result of its failure to follow, or properly to follow, the procedures described above, or as a result of lost or delayed fingerprint cards, electronic fingerprint records, or fingerprint reports, or as a result of any action by NASD or NASD’s failure to take action in connection with this Plan. [FR Doc. E6–7100 Filed 5–9–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53752; File No. SR–PCX– 2006–14] Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.); Order Approving Proposed Rule Change To Reduce the Fee Charged to a Lead Market Maker When It Transfers Options Issues to Another Lead Market Maker May 2, 2006. Frm 00082 II. Description of the Proposal In its filing, the Exchange proposed to reduce the fee charged to an LMM, when the LMM transfers an allocated options issue to another LMM. The Exchange presently charges an LMM a $1000 fee, per issue, in the event that the LMM transfers the issue to another LMM, in accordance with the Exchange’s allocation procedures. The $1000 per issue fee is subject to a cap when multiple issues are included as part of the same transfer. Under the new proposal, the fee will be $100 per issue transferred. The new lower fee will not be subject to a rate cap when multiple issues are transferred. The Exchange proposes to make this fee effective retroactive to September 26, 2005, which coincides with the date that Archipelago Holdings Inc. acquired the Exchange (‘‘Merger’’). The Exchange will review all transfers that have occurred or may occur from September 26, 2005 through the effective date of this proposal and will make any fee adjustments that are deemed warranted pursuant to the proposed rate schedule contained in this filing. III. Discussion After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b) of the Act 4 and the rules and regulations thereunder applicable to a national securities exchange.5 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) of the Act,6 which requires, among other things, that an exchange’s rules provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. The 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 53476 (March 13, 2006), 71 FR 14046. 4 15 U.S.C. 78f(b). 5 In approving the proposed rule change, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(4). 2 17 I. Introduction On February 23, 2006, the Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.) (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change PO 00000 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to reduce the fee charged to a Lead Market Maker (‘‘LMM’’) when it transfers options issues to another LMM. The proposed rule change was published for comment in the Federal Register on March 20, 2006.3 The Commission received no comments on the proposal. This order approves the proposed rule change. Fmt 4703 Sfmt 4703 E:\FR\FM\10MYN1.SGM 10MYN1

Agencies

[Federal Register Volume 71, Number 90 (Wednesday, May 10, 2006)]
[Notices]
[Pages 27299-27300]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7100]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53751]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Declaration of Effectiveness of the Fingerprint Plan of 
the National Association of Securities Dealers, Inc.

May 2, 2006.
    On May 1, 2006, the National Association of Securities Dealers, 
Inc. (``NASD'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') an amended fingerprinting plan (``Amended 
Plan'') pursuant to Rule 17f-2(c) \1\ under the Securities Exchange Act 
of 1934 (``Act'').\2\ The Amended Plan \3\ supersedes and replaces the 
NASD's current fingerprinting plan.\4\
---------------------------------------------------------------------------

    \1\ 17 CFR 240.17f-2(c).
    \2\ 15 U.S.C. 78a et seq.
    \3\ Attached hereto as Exhibit A.
    \4\ The Commission declared the current fingerprint plan of the 
NASD effective in 1988.
---------------------------------------------------------------------------

    The NASD believes that the Amended Plan will be an improvement over 
the current NASD fingerprinting plan. It permits the NASD to record in 
the Central Registration Depository (``CRD'') the status of 
fingerprints submitted to the Attorney General. Through the CRD system, 
NASD makes available to a member or other securities industry 
participant that has submitted fingerprints the status and results of 
such fingerprints after submission to the Attorney General. In 
addition, the NASD has made other minor clarifying and typographical 
revisions.
    Under the NASD's current fingerprinting plan, members or other 
securities industry participants submit fingerprints and identifying 
information, on paper or electronically, to the NASD, which then 
forwards the cards to the Federal Bureau of Investigation (``FBI'') 
(the fingerprint processing arm of the Office of the Attorney General 
of the United States). The FBI identifies submitted fingerprints, 
retrieves relevant criminal history information, and returns 
fingerprint reports (including the original paper fingerprint cards, if 
any) to the NASD. Under the terms of the Amended Plan, the member or 
other securities industry participant will be able to view the status 
and results of fingerprints, including any relevant criminal history 
information, through the CRD system.
    The Commission has reviewed the procedures detailed in the Amended 
Plan and believes that the Amended Plan is consistent with the public 
interest and the protection of investors. Enabling members or other 
securities industry participants to view the status and results of 
fingerprints, including relevant criminal history information, through 
the CRD system should improve the efficiency of members or other 
securities industry participants in identifying persons who may be 
subject to statutory disqualification more rapidly. Thus, the 
Commission declares the Amended Plan to be effective.
    The Commission notes that securities industry fingerprinting 
procedures are in a state of flux due to rapidly advancing technology. 
In the event that an industry-wide standard is adopted or becomes 
prevalent and in the event that this Amended Plan substantially differs 
therefrom, the Commission would expect the NASD to revise its 
fingerprinting plan to incorporate the industry-wide standard.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(17)(iii).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.

Exhibit A--National Association of Securities Dealers, Incorporated; 
Fingerprint Plan

    National Association of Securities Dealers, Inc. (``NASD'') submits 
this Fingerprint Plan (``Plan'') pursuant to Rule 17f-2(c) under the 
Securities Exchange Act of 1934 (``Exchange Act''). This Plan 
supersedes and replaces the NASD's Fingerprint Plan approved by the 
Securities and Exchange Commission (``Commission'') on June 22, 1976, 
and as amended thereafter.
    The purpose of this Plan is to facilitate securities industry 
participants' compliance with Section 17(f)(2) of the Exchange Act and 
Rule 17f-2 thereunder, by providing a facility for securities industry 
participants to

[[Page 27300]]

have the fingerprints of their partners, directors, officers, and 
employees processed by the Attorney General of the United States or his 
designee (hereinafter ``Attorney General'') as required by Section 
17(f)(2) and Rule 17f-2, thereunder. NASD, pursuant to a Plan filed 
with and declared effective by the Commission, processes fingerprint 
records of securities industry participants as described herein 
consistent with those provisions.
    NASD accepts fingerprints and identifying information from member 
firms and other securities industry participants required to be 
fingerprinted pursuant to Rule 17f-2. Securities industry participants 
may submit fingerprints and identifying information on paper or 
electronically, provided such submissions are consistent with protocols 
and requirements established by the Attorney General.
    NASD accepts a single set of fingerprints and identifying 
information for an associated person in lieu of separate fingerprint 
submissions by affiliated NASD member firms with which the individual 
is associated in satisfaction of the Section 17(f)(2) fingerprinting 
requirement, provided that the NASD affiliate member firms are under 
common ownership or control as reported on Form BD, and that affiliate 
information is provided with the initial application for registration.
    NASD transmits fingerprints and identifying information, on paper 
or electronically, to the Attorney General for identification and 
processing, consistent with protocols and requirements established by 
the Attorney General.
    NASD receives processed results from the Attorney General (on paper 
or electronically) and transmits those results via paper or electronic 
means to authorized recipients (i.e., to a member or other securities 
industry participant that submitted the fingerprints and to regulators 
for licensing, registration and other regulatory purposes), consistent 
with protocols and requirements established by the Attorney General. In 
cases where the Attorney General's search on the fingerprints submitted 
fails to disclose prior arrest data, NASD transmits that result to the 
securities industry participant that submitted the fingerprints. In 
cases where the Attorney General's search yields Criminal History 
Record Information (CHRI), NASD transmits that information to the 
securities industry participant that submitted the fingerprints. With 
respect to members, NASD also reviews any CHRI returned by the Attorney 
General to identify persons who may be subject to statutory 
disqualification under the Exchange Act and to take action, as 
appropriate, with respect to such persons.
    NASD advises its members and member applicants of the availability 
of fingerprint services and any fees charged by NASD in connection with 
those services and the processing of fingerprints pursuant to this 
Plan. NASD will file any such NASD member fees with the Commission 
pursuant to Section 19(b) of the Exchange Act.
    NASD maintains copies of fingerprint processing results received 
from the Attorney General with respect to fingerprints submitted by 
NASD pursuant to this Plan, in accordance with NASD's Record Retention 
Plan filed with the Commission. Any maintenance of fingerprint records 
by NASD shall be for NASD's own administrative purposes, and NASD is 
not undertaking to maintain fingerprint records on behalf of NASD 
members pursuant to Rule 17f-2(d)(2). NASD records in the Central 
Registration Depository (CRD[supreg]) the status of fingerprints 
submitted to the Attorney General. Through the CRD system, NASD makes 
available to a member that has submitted fingerprints the status and 
results of such fingerprints after submission to the Attorney General.
    NASD shall not be liable for losses or damages of any kind in 
connection with its fingerprinting services, as a result of its failure 
to follow, or properly to follow, the procedures described above, or as 
a result of lost or delayed fingerprint cards, electronic fingerprint 
records, or fingerprint reports, or as a result of any action by NASD 
or NASD's failure to take action in connection with this Plan.
 [FR Doc. E6-7100 Filed 5-9-06; 8:45 am]
BILLING CODE 8010-01-P