Order Modifying a Condition to Operation as a National Securities Exchange of the Nasdaq Stock Market LLC, 38910-38911 [E6-10712]
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Federal Register / Vol. 71, No. 131 / Monday, July 10, 2006 / Notices
Management Limited, applicant’s
subadviser.
Filing Dates: The application was
filed on July 8, 2004, and amended on
June 13, 2006.
Applicant’s Address: 6125 Memorial
Dr., Dublin, OH 43017.
AIM Millennium Alternative Strategies
Fund [File No. 811–10299]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. Applicant has
never made a public offering of its
securities and does not propose to make
a public offering or engage in business
of any kind.
Filing Dates: The application was
filed on March 31, 2003, and amended
on May 12, 2003 and June 12, 2006.
Applicant’s Address: 11 Greenway
Plaza, Suite 100, Houston, TX 77046–
1173.
Runkel Funds, Inc. [File No. 811–
21070]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On October 20,
2005, applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $4,087
incurred in connection with the
liquidation were paid by Runkel
Advisors, LLC, applicant’s investment
adviser, and Thomas J. Runkel, manager
of applicant’s investment adviser.
Filing Dates: The application was
filed on December 7, 2005, and
amended on February 3, 2006, March
10, 2006 and June 23, 2006.
Applicant’s Address: 903 Chevy St.,
Belmont, CA 94002.
sroberts on PROD1PC70 with NOTICES
Legg Mason Cash Reserve Trust [File
No. 811–2853]
Legg Mason Tax-Exempt Trust, Inc.
[File No. 811–3526]
Summary: Each applicant seeks an
order declaring that it has ceased to be
an investment company. On February
28, 2006, each applicant made a
liquidating distribution to its
shareholders, based on net asset value.
Expenses of $36,099 and $11,984,
respectively, incurred in connection
with the liquidations were paid by Legg
Mason Fund Adviser, Inc., applicants’
investment adviser.
Filing Date: The applications were
filed on May 31, 2006.
Applicants’ Address: 100 Light St.,
Baltimore, MD 21202.
Hart Life Insurance Company Separate
Account One [File No. 811–9045]
Summary: Applicant, a separate
account for variable annuities, seeks an
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17:10 Jul 07, 2006
Jkt 208001
order declaring that it has ceased to be
an investment company. Applicant has
never made a public offering of its
securities, does not propose to make a
public offering, and has never had any
contractowners invested in the separate
account.
Filing Date: The application was filed
on April 25, 2006.
Applicant’s Address: P.O. Box 2999,
Hartford, CT 06104.
Hart Life Insurance Company Separate
Account Two [File No. 811–9047]
Summary: Applicant, a separate
account for variable life insurance, seeks
an order declaring that it has ceased to
be an investment company. Applicant
has never made a public offering of its
securities, does not propose to make a
public offering, and has never had any
contractowners invested in the separate
account.
Filing Date: The application was filed
on April 25, 2006.
Applicant’s Address: P.O. Box 2999,
Hartford, CT 06104.
ReliaStar Life Insurance Company of
New York Variable Annuity Separate
Account II [File No. 811–8965]
Summary: Applicant, a separate
account for variable annuities, seeks an
order declaring that it has ceased to be
an investment company. Applicant has
never made and does not propose to
make a public offering of its securities,
and it has never had any contractowners
invested in the separate account.
Filing Dates: The application was
filed on February 6, 2006, and amended
on June 1, 2006.
Applicant’s Address: 1000 Woodbury
Road, Woodbury, New York 11797.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Nancy M. Morris,
Secretary.
[FR Doc. E6–10683 Filed 7–7–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54085; File No. 10–131]
Order Modifying a Condition to
Operation as a National Securities
Exchange of the Nasdaq Stock Market
LLC
June 30, 2006.
I. Introduction
On January 13, 2006, the Securities
and Exchange Commission
(‘‘Commission’’) granted registration of
the Nasdaq Stock Market LLC (‘‘Nasdaq
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
Exchange’’) as a national securities
exchange.1 At the same time, the
Commission conditioned the Nasdaq
Exchange’s operation as an exchange on
the satisfaction of six specific
requirements. The Commission is
modifying in this Order the condition
requiring the NASD to represent to the
Commission that it no longer needs to
control the Nasdaq Stock Market, Inc.
(‘‘Nasdaq’’), the Nasdaq Exchange’s
parent company, through the Preferred
D share because the NASD can fulfill
through other means its obligations with
respect to non-Nasdaq exchange listed
securities under Section 15A(b)(11) of
the Securities Exchange Act of 1934
(‘‘Exchange Act’’),2 Rules 602 and 603 of
Regulation NMS,3 and the national
market system plans in which it
participates (the ‘‘Control Share
Condition’’). This condition reflected
the Nasdaq Exchange’s intent to begin
trading at the same time Nasdaq UTP
Plan Securities and CTA Plan
Securities.4
The Nasdaq Exchange would now
prefer to commence trading Nasdaq UTP
Plan Securities and CTA Plan Securities
in two separate phases. Accordingly, by
letter dated March 31, 2006, the Nasdaq
Exchange requested that the
Commission modify the Control Share
Condition to allow it to begin operating
as an exchange with regard to Nasdaq
UTP Plan Securities before the Control
Share Condition is satisfied.5 As
discussed further below, the
Commission is granting the Nasdaq
Exchange’s request. Until the Control
Share Condition is satisfied, however,
the NASD must retain control of Nasdaq
through the Preferred D share, and
Nasdaq must continue to perform
obligations under the NASD’s Plan of
Allocation and Delegation of Functions
by NASD to Subsidiaries (‘‘Delegation
1 See Exchange Act Release No. 53128, 71 FR
3550 (January 23, 2006) (‘‘Nasdaq Exchange
Order’’).
2 15 U.S.C. 78o–3(b)(11).
3 17 CFR 242.602 and 603.
4 Transactions are reported pursuant to two
national market system plans: Nasdaq-listed
securities are reported to the Joint Self-Regulatory
Organization Plan Governing the Collection,
Consolidation and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed
Securities Traded on Exchanges on an Unlisted
Trading Privileges Basis (‘‘Nasdaq UTP Plan
Securities’’); securities listed on other national
securities exchanges are reported to the
Consolidated Transaction Association Plan (‘‘CTA
Plan Securities’’). Approximately 40 securities are
dually-listed on Nasdaq and the New York Stock
Exchange LLC. Transactions in these securities are
reported to the CTA Plan and thus are CTA Plan
Securities.
5 See letter to Nancy M. Morris, Secretary,
Commission, from Edward S. Knight, Executive
Vice President and General Counsel, Nasdaq, dated
March 31, 2006.
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10JYN1
Federal Register / Vol. 71, No. 131 / Monday, July 10, 2006 / Notices
Plan’’) with respect to CTA Plan
Securities. Satisfaction of the condition
would continue to be a prerequisite to
the Nasdaq Exchange trading CTA Plan
Securities.
sroberts on PROD1PC70 with NOTICES
II. Discussion
As discussed in the Nasdaq Exchange
Order,6 the NASD plans to remain a
member of the Intermarket Trading
System (‘‘ITS Plan’’) for the purpose of
providing access to over-the-counter
(‘‘OTC’’) quotes in CTA Plan Securities
communicated by its members through
NASD facilities and to provide its
members access to exchanges’ quotes in
such securities. The Control Share
Condition is necessary because the
NASD and its members currently
comply with their obligations under the
ITS Plan through the NASD’s Nasdaq
Market Center facility.
In addition, with respect to CTA Plan
Securities, NASD facilities owned by
Nasdaq currently are the NASD’s only
means available to fulfill its obligations
under Exchange Act Rules 602 and
603,7 the CTA Plan, CQ Plan, and
Section 15A(b)(11) of the Exchange
Act.8 Therefore, the NASD must have
the means to satisfy these obligations
prior to relinquishing control of Nasdaq.
The Nasdaq Exchange represented
that the technology solutions to allow
the NASD to fulfill its obligations with
respect to CTA Plan Securities through
means that would not involve a
delegation of regulatory authority to
Nasdaq are not completed.9 In addition,
the Nasdaq Exchange represented that
many of its prospective members have
indicated that a phased-in approach to
the Nasdaq Exchange’s operation would
be preferable. Specifically, according to
the Nasdaq Exchange, these firms
believe that a single-day transition
would entail unnecessary costs and
administrative burdens and pose
transition risks that could be mitigated
through a phased approach.
The Commission believes that a
phased-in implementation of the
operation of the Nasdaq Exchange is
consistent with the Exchange Act and
may allow for a more smooth transition.
Accordingly, the Commission believes
that it is necessary or appropriate in the
public interest, consistent with the
protection of investors and consistent
with the requirements of Exchange Act,
and the rules and regulations
thereunder applicable to Nasdaq
6 See
Nasdaq Exchange Order, supra note 1.
CFR 242.602 and 603.
8 15 U.S.C. 78o–3(b)(11).
9 The Commission notes that the NASD operates
the Alternative Display Facility (‘‘ADF’’), which
currently collects quotes and trades for Nasdaq UTP
Plan Securities, but not for CTA Plan Securities.
7 17
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17:10 Jul 07, 2006
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38911
Exchange to modify the Control Share
Condition to the Nasdaq Exchange
Order as follows:
First, the requirement that the NASD
represent that ‘‘control of Nasdaq
through the Preferred D share is no
longer necessary because the NASD can
fulfill through other means its
obligations with respect to [CTA Plan
Securities] under Section 15A(b)(11) of
the Exchange Act,10 Rules 602 and 603
of Regulation NMS,11 and the national
market system plans in which the NASD
participates’’ is modified so as to be a
condition only with respect to the
Nasdaq Exchange commencing to trade
CTA Plan Securities. This will allow the
Nasdaq Exchange to begin operations as
a national securities exchange solely for
Nasdaq UTP Plan securities before the
Control Share Condition is satisfied.
Second, the Control Share Condition
is modified to permit the Nasdaq
Exchange to commence trading Nasdaq
UTP Plan Securities once Nasdaq is no
longer delegated regulatory authority
under the Delegation Plan with respect
to such securities. The modification of
the Control Share Condition described
above means that the Nasdaq Exchange
would commence trading in Nasdaq
UTP Plan Securities while the NASD
controls Nasdaq. The Commission
believes, however, that it would be
inappropriate for the Nasdaq Exchange
to commence trading in Nasdaq UTP
Plan Securities while its parent
company continued to be delegated
regulatory authority by the NASD with
respect to the same activities.
Accordingly, the Commission would
have to approve an amendment to the
NASD’s Delegation Plan to reflect that
Nasdaq would no longer be delegated
regulatory authority with regard to
Nasdaq UTP Securities prior to the
Nasdaq Exchange commencing to trade
Nasdaq UTP Plan Securities.
Nasdaq UTP Plan, the NASD’s
Delegation Plan is amended to eliminate
Nasdaq’s exercise of regulatory
authority with respect to such
securities.
(2) With respect only to the Nasdaq
Exchange commencing to trade
securities reported pursuant to the CTA
Plan, the NASD must represent to the
Commission that control of Nasdaq
through the Preferred D share is no
longer necessary because the NASD can
fulfill through other means its
obligations with respect to securities
reported to the CTA Plan under Section
15A(b)(11) of the Exchange Act, Rules
602 and 603 of Regulation NMS, and the
national market system plans in which
the NASD participates.
III. Modification of Conditions to
Operation
The Commission notes that all of the
other conditions set forth in the Nasdaq
Exchange Order remain and must be
satisfied before the Nasdaq Exchange
can begin operations as an exchange.
The Commission hereby replaces the
Control Share Condition to operation of
the Nasdaq Exchange as a national
securities exchange as follows:
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 June 20,
2006, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Amex has filed
the proposed rule change, pursuant to
section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposal effective upon
B. The NASD’s Ability To Fulfill Its
Statutory and Regulatory Obligations
(1) With respect to the Nasdaq
Exchange commencing to trade
securities reported pursuant to the
PO 00000
IV. Conclusion
It is ordered that the Control Share
Condition to operation for the Nasdaq
Exchange is modified as described
herein.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–10712 Filed 7–7–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54081; File No. SR–Amex–
2006–60]
Self-Regulatory Organizations;
America Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
the Extension of the Pilot Period
Applicable to the Listing and Trading
of Options on the iShares MSCI
Emerging Markets Index
June 30, 2006.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
10 15
11 17
U.S.C. 78o–3(b)(11).
CFR 242.602 and 603.
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Fmt 4703
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]]>Agencies
[Federal Register Volume 71, Number 131 (Monday, July 10, 2006)]
[Notices]
[Pages 38910-38911]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10712]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54085; File No. 10-131]
Order Modifying a Condition to Operation as a National Securities
Exchange of the Nasdaq Stock Market LLC
June 30, 2006.
I. Introduction
On January 13, 2006, the Securities and Exchange Commission
(``Commission'') granted registration of the Nasdaq Stock Market LLC
(``Nasdaq Exchange'') as a national securities exchange.\1\ At the same
time, the Commission conditioned the Nasdaq Exchange's operation as an
exchange on the satisfaction of six specific requirements. The
Commission is modifying in this Order the condition requiring the NASD
to represent to the Commission that it no longer needs to control the
Nasdaq Stock Market, Inc. (``Nasdaq''), the Nasdaq Exchange's parent
company, through the Preferred D share because the NASD can fulfill
through other means its obligations with respect to non-Nasdaq exchange
listed securities under Section 15A(b)(11) of the Securities Exchange
Act of 1934 (``Exchange Act''),\2\ Rules 602 and 603 of Regulation
NMS,\3\ and the national market system plans in which it participates
(the ``Control Share Condition''). This condition reflected the Nasdaq
Exchange's intent to begin trading at the same time Nasdaq UTP Plan
Securities and CTA Plan Securities.\4\
---------------------------------------------------------------------------
\1\ See Exchange Act Release No. 53128, 71 FR 3550 (January 23,
2006) (``Nasdaq Exchange Order'').
\2\ 15 U.S.C. 78o-3(b)(11).
\3\ 17 CFR 242.602 and 603.
\4\ Transactions are reported pursuant to two national market
system plans: Nasdaq-listed securities are reported to the Joint
Self-Regulatory Organization Plan Governing the Collection,
Consolidation and Dissemination of Quotation and Transaction
Information for Nasdaq-Listed Securities Traded on Exchanges on an
Unlisted Trading Privileges Basis (``Nasdaq UTP Plan Securities'');
securities listed on other national securities exchanges are
reported to the Consolidated Transaction Association Plan (``CTA
Plan Securities''). Approximately 40 securities are dually-listed on
Nasdaq and the New York Stock Exchange LLC. Transactions in these
securities are reported to the CTA Plan and thus are CTA Plan
Securities.
---------------------------------------------------------------------------
The Nasdaq Exchange would now prefer to commence trading Nasdaq UTP
Plan Securities and CTA Plan Securities in two separate phases.
Accordingly, by letter dated March 31, 2006, the Nasdaq Exchange
requested that the Commission modify the Control Share Condition to
allow it to begin operating as an exchange with regard to Nasdaq UTP
Plan Securities before the Control Share Condition is satisfied.\5\ As
discussed further below, the Commission is granting the Nasdaq
Exchange's request. Until the Control Share Condition is satisfied,
however, the NASD must retain control of Nasdaq through the Preferred D
share, and Nasdaq must continue to perform obligations under the NASD's
Plan of Allocation and Delegation of Functions by NASD to Subsidiaries
(``Delegation
[[Page 38911]]
Plan'') with respect to CTA Plan Securities. Satisfaction of the
condition would continue to be a prerequisite to the Nasdaq Exchange
trading CTA Plan Securities.
---------------------------------------------------------------------------
\5\ See letter to Nancy M. Morris, Secretary, Commission, from
Edward S. Knight, Executive Vice President and General Counsel,
Nasdaq, dated March 31, 2006.
---------------------------------------------------------------------------
II. Discussion
As discussed in the Nasdaq Exchange Order,\6\ the NASD plans to
remain a member of the Intermarket Trading System (``ITS Plan'') for
the purpose of providing access to over-the-counter (``OTC'') quotes in
CTA Plan Securities communicated by its members through NASD facilities
and to provide its members access to exchanges' quotes in such
securities. The Control Share Condition is necessary because the NASD
and its members currently comply with their obligations under the ITS
Plan through the NASD's Nasdaq Market Center facility.
---------------------------------------------------------------------------
\6\ See Nasdaq Exchange Order, supra note 1.
---------------------------------------------------------------------------
In addition, with respect to CTA Plan Securities, NASD facilities
owned by Nasdaq currently are the NASD's only means available to
fulfill its obligations under Exchange Act Rules 602 and 603,\7\ the
CTA Plan, CQ Plan, and Section 15A(b)(11) of the Exchange Act.\8\
Therefore, the NASD must have the means to satisfy these obligations
prior to relinquishing control of Nasdaq.
---------------------------------------------------------------------------
\7\ 17 CFR 242.602 and 603.
\8\ 15 U.S.C. 78o-3(b)(11).
---------------------------------------------------------------------------
The Nasdaq Exchange represented that the technology solutions to
allow the NASD to fulfill its obligations with respect to CTA Plan
Securities through means that would not involve a delegation of
regulatory authority to Nasdaq are not completed.\9\ In addition, the
Nasdaq Exchange represented that many of its prospective members have
indicated that a phased-in approach to the Nasdaq Exchange's operation
would be preferable. Specifically, according to the Nasdaq Exchange,
these firms believe that a single-day transition would entail
unnecessary costs and administrative burdens and pose transition risks
that could be mitigated through a phased approach.
---------------------------------------------------------------------------
\9\ The Commission notes that the NASD operates the Alternative
Display Facility (``ADF''), which currently collects quotes and
trades for Nasdaq UTP Plan Securities, but not for CTA Plan
Securities.
---------------------------------------------------------------------------
The Commission believes that a phased-in implementation of the
operation of the Nasdaq Exchange is consistent with the Exchange Act
and may allow for a more smooth transition. Accordingly, the Commission
believes that it is necessary or appropriate in the public interest,
consistent with the protection of investors and consistent with the
requirements of Exchange Act, and the rules and regulations thereunder
applicable to Nasdaq Exchange to modify the Control Share Condition to
the Nasdaq Exchange Order as follows:
First, the requirement that the NASD represent that ``control of
Nasdaq through the Preferred D share is no longer necessary because the
NASD can fulfill through other means its obligations with respect to
[CTA Plan Securities] under Section 15A(b)(11) of the Exchange Act,\10\
Rules 602 and 603 of Regulation NMS,\11\ and the national market system
plans in which the NASD participates'' is modified so as to be a
condition only with respect to the Nasdaq Exchange commencing to trade
CTA Plan Securities. This will allow the Nasdaq Exchange to begin
operations as a national securities exchange solely for Nasdaq UTP Plan
securities before the Control Share Condition is satisfied.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78o-3(b)(11).
\11\ 17 CFR 242.602 and 603.
---------------------------------------------------------------------------
Second, the Control Share Condition is modified to permit the
Nasdaq Exchange to commence trading Nasdaq UTP Plan Securities once
Nasdaq is no longer delegated regulatory authority under the Delegation
Plan with respect to such securities. The modification of the Control
Share Condition described above means that the Nasdaq Exchange would
commence trading in Nasdaq UTP Plan Securities while the NASD controls
Nasdaq. The Commission believes, however, that it would be
inappropriate for the Nasdaq Exchange to commence trading in Nasdaq UTP
Plan Securities while its parent company continued to be delegated
regulatory authority by the NASD with respect to the same activities.
Accordingly, the Commission would have to approve an amendment to the
NASD's Delegation Plan to reflect that Nasdaq would no longer be
delegated regulatory authority with regard to Nasdaq UTP Securities
prior to the Nasdaq Exchange commencing to trade Nasdaq UTP Plan
Securities.
III. Modification of Conditions to Operation
The Commission notes that all of the other conditions set forth in
the Nasdaq Exchange Order remain and must be satisfied before the
Nasdaq Exchange can begin operations as an exchange.
The Commission hereby replaces the Control Share Condition to
operation of the Nasdaq Exchange as a national securities exchange as
follows:
B. The NASD's Ability To Fulfill Its Statutory and Regulatory
Obligations
(1) With respect to the Nasdaq Exchange commencing to trade
securities reported pursuant to the Nasdaq UTP Plan, the NASD's
Delegation Plan is amended to eliminate Nasdaq's exercise of regulatory
authority with respect to such securities.
(2) With respect only to the Nasdaq Exchange commencing to trade
securities reported pursuant to the CTA Plan, the NASD must represent
to the Commission that control of Nasdaq through the Preferred D share
is no longer necessary because the NASD can fulfill through other means
its obligations with respect to securities reported to the CTA Plan
under Section 15A(b)(11) of the Exchange Act, Rules 602 and 603 of
Regulation NMS, and the national market system plans in which the NASD
participates.
IV. Conclusion
It is ordered that the Control Share Condition to operation for the
Nasdaq Exchange is modified as described herein.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-10712 Filed 7-7-06; 8:45 am]
BILLING CODE 8010-01-P
