Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Granting Approval of a Proposed Rule Change To Require Members To Report All Transactions That Must Be Reported to NASD and Are Subject to a Regulatory Transaction Fee to the Nasdaq Market Center and/or the Trade Reporting and Comparison Service, 34976 [E6-9438]

Download as PDF 34976 Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Notices 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 Section, 100 F Street, NE., Washington, DC 20549. Copies of such filings also will be available for inspection and copying at the principal office of DTC and on DTC’s Web site at https:// login.dtcc.com/dtcorg/. 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–DTC– 2006–08 and should be submitted on or before July 7, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–9439 Filed 6–15–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53977; File No. SR–NASD– 2006–055] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Granting Approval of a Proposed Rule Change To Require Members To Report All Transactions That Must Be Reported to NASD and Are Subject to a Regulatory Transaction Fee to the Nasdaq Market Center and/or the Trade Reporting and Comparison Service wwhite on PROD1PC61 with NOTICES June 12, 2006. On April 21, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to require NASD members to report all transactions that must be reported to NASD and that are subject to a regulatory transaction fee pursuant to Section 3 of Schedule A to 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 18:25 Jun 15, 2006 Jkt 208001 the NASD By-Laws (‘‘Section 3’’) to the Nasdaq Market Center (‘‘NMC’’) and/or the Trade Reporting and Comparison Service (‘‘TRACS’’). The proposed rule change was published for comment in the Federal Register on May 8, 2006.3 The Commission received no comments on the proposal. This order approves the proposed rule change. Currently, NASD obtains funds to pay its Section 31 fees and assessments from its membership, in accordance with Section 3. Further, NASD represents that most of the transactions that are assessed a fee under Section 3 are subject to automated reporting to NMC or TRACS pursuant to NASD trade reporting rules. NASD member firms, however, currently are required to manually self-report covered sales that are odd lots, away-from-the-market sales, and exercises of OTC options. NASD represents that the current selfreporting process has allowed NASD to meet its obligations under section 31 of the Act.4 However, there have been instances when some NASD members have filed their self-reporting forms late or amended previous forms in later months to include additional covered sales volume. NASD has now proposed to require automated reporting, to NMC or TRACS, of these additional types of covered sales, so that all covered sales that must be reported for purposes of Section 3 are reported in an automated fashion. NASD also has proposed to establish separate modifiers for reports of covered sales that are odd lots, awayfrom-the-market sales, and exercises of OTC options. NASD would not print these transactions to the Consolidated Tape. NASD will announce the effective date of the proposed rule change in a Notice to Members to be published no later than 60 days following this approval order. The effective date would be at least 90 days following publication of the Notice to Members announcing Commission approval to allow firms sufficient time to make any necessary systems changes. The Commission finds that the proposed rule change is consistent with the requirements of section 15A of the Act,5 and the rules and regulations thereunder applicable to a national securities association.6 In particular, the Commission finds that the proposed rule change is consistent with section 3 See Securities Exchange Act Release No. 53748 (May 2, 2006), 71 FR 26795. 4 15 U.S.C. 78ee. 5 15 U.S.C. 78o–3. 6 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). PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 15A(b)(6) of the Act,7 which requires, among other things, that NASD’s rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The proposal should improve the efficiency, accuracy, and timeliness of NASD trade reporting by requiring automated reporting of certain types of transactions that currently are manually reported to NASD and is, therefore, reasonable and consistent with the Act. It is therefore ordered, pursuant to section 19(b)(2) of the Act,8 that the proposed rule change (SR–NASD–2006– 055) is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–9438 Filed 6–15–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53967; File No. SR–NYSE– 2006–19] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto to List and Trade Index-Linked Notes of Barclays Bank PLC Linked to the Performance of the Goldman Sachs Crude Oil Total Return IndexTM June 9, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 2 thereunder, notice is hereby given that on March 13, 2006, the New York Stock Exchange, Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. On March 27, 2006, NYSE filed Amendment No. 1 to the proposed rule change.3 On May 26, 2006, NYSE filed Amendment No. 2 to the proposed rule 7 15 U.S.C. 78o–3(b)(6). U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 In Amendment No. 1, the Exchange notes proposed Supplementary Material to NYSE Rule 1301B in SR–NYSE–2006–17, which sets forth guidelines for specialists applicable to this product. The Exchange also makes clarifying and technical change to this proposal in Amendment No. 1. 8 15 E:\FR\FM\16JNN1.SGM 16JNN1

Agencies

[Federal Register Volume 71, Number 116 (Friday, June 16, 2006)]
[Notices]
[Page 34976]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9438]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53977; File No. SR-NASD-2006-055]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Granting Approval of a Proposed Rule Change To 
Require Members To Report All Transactions That Must Be Reported to 
NASD and Are Subject to a Regulatory Transaction Fee to the Nasdaq 
Market Center and/or the Trade Reporting and Comparison Service

June 12, 2006.
    On April 21, 2006, the National Association of Securities Dealers, 
Inc. (``NASD'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to require NASD members to report all transactions 
that must be reported to NASD and that are subject to a regulatory 
transaction fee pursuant to Section 3 of Schedule A to the NASD By-Laws 
(``Section 3'') to the Nasdaq Market Center (``NMC'') and/or the Trade 
Reporting and Comparison Service (``TRACS''). The proposed rule change 
was published for comment in the Federal Register on May 8, 2006.\3\ 
The Commission received no comments on the proposal. This order 
approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 53748 (May 2, 2006), 
71 FR 26795.
---------------------------------------------------------------------------

    Currently, NASD obtains funds to pay its Section 31 fees and 
assessments from its membership, in accordance with Section 3. Further, 
NASD represents that most of the transactions that are assessed a fee 
under Section 3 are subject to automated reporting to NMC or TRACS 
pursuant to NASD trade reporting rules. NASD member firms, however, 
currently are required to manually self-report covered sales that are 
odd lots, away-from-the-market sales, and exercises of OTC options.
    NASD represents that the current self-reporting process has allowed 
NASD to meet its obligations under section 31 of the Act.\4\ However, 
there have been instances when some NASD members have filed their self-
reporting forms late or amended previous forms in later months to 
include additional covered sales volume. NASD has now proposed to 
require automated reporting, to NMC or TRACS, of these additional types 
of covered sales, so that all covered sales that must be reported for 
purposes of Section 3 are reported in an automated fashion. NASD also 
has proposed to establish separate modifiers for reports of covered 
sales that are odd lots, away-from-the-market sales, and exercises of 
OTC options. NASD would not print these transactions to the 
Consolidated Tape.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78ee.
---------------------------------------------------------------------------

    NASD will announce the effective date of the proposed rule change 
in a Notice to Members to be published no later than 60 days following 
this approval order. The effective date would be at least 90 days 
following publication of the Notice to Members announcing Commission 
approval to allow firms sufficient time to make any necessary systems 
changes.
    The Commission finds that the proposed rule change is consistent 
with the requirements of section 15A of the Act,\5\ and the rules and 
regulations thereunder applicable to a national securities 
association.\6\ In particular, the Commission finds that the proposed 
rule change is consistent with section 15A(b)(6) of the Act,\7\ which 
requires, among other things, that NASD's rules be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest. The proposal should improve the efficiency, 
accuracy, and timeliness of NASD trade reporting by requiring automated 
reporting of certain types of transactions that currently are manually 
reported to NASD and is, therefore, reasonable and consistent with the 
Act.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78o-3.
    \6\ 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).
    \7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NASD-2006-055) is approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E6-9438 Filed 6-15-06; 8:45 am]
BILLING CODE 8010-01-P