Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Technical and Conforming Changes to Nasdaq's 1000 Series Rules, 44336-44338 [E6-12612]
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gechino on PROD1PC61 with NOTICES
44336
Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Notices
(i) To have and to make available the
NYSE System to assume the functions of
the System on a preemptive and priority
basis in the event of a disaster which
renders the System inoperable. Such
system is composed of computers and
peripheral equipment sufficient to
operate the System at a minimum of
50% of the System’s rated 150 messages
per second capacity and 75% of the
System’s disk capacity.
(ii) That the facilities manager is
authorized to take the actions necessary
to make the NYSE System available to
assume the functions of the System
within two hours in the event of a
limited disaster and on the next day in
the event of a full site disaster. The
facilities manager is authorized to make
the determinations that, in its good faith
judgment, there has been a limited
disaster or full site disaster, the System
is inoperable, and the NYSE System will
assume the functions of the System.
(iii) That the NYSE System will be
located at a site remote from the site
where the System is located.
(d) Implementation Obligations of
Participants Other than NYSE (‘‘Other
Participants’’).
(i) Fees. In consideration of the
NYSE’s making available the NYSE
System to assume the functions of the
System in the event of a disaster, the
Other Participants agree to pay to the
NYSE: (A) A preemptive and priority
reserve fee totaling $24,800 per calendar
quarter (such reserve fee shall be
adjusted each January by the same
percentage change as in the Consumer
Price Index as calculated by the U.S.
Department of Commerce for the
preceding calendar year); and (B) a per
diem fee, if in the event of a disaster the
NYSE System assumes the functions of
the System, for each day in excess of
five consecutive trading days that the
NYSE System is so utilized. Such per
diem fee shall equal 1⁄250 of the yearly
dollar amount the facilities manager
charges the NYSE to operate the NYSE
System.
This subsection (d)(i) shall become
effective on the date that the facilities
manager confirms in writing to the
Supervisory Committee that it has taken
all actions necessary to make the NYSE
System available to assume the
functions of the System as specified in
subsection (c) of this section 12. If such
effective date is other than the first day
of the calendar quarter, then the
preemptive and priority reserve fee for
such calendar quarter shall be
calculated pro rata based upon the
number of days in such calendar quarter
that the NYSE System is so available.
(ii) Fee Sharing. Each of the Other
Participants agrees to pay a share of the
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22:39 Aug 03, 2006
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preemptive and priority reserve and per
diem fees based upon a proportional
share of its production costs excluding
the NYSE’s share.
(iii) Fee Payment. Fee payment will
be computed by the System’s facilities
manager as soon as practicable
following the close of each calendar
month. Each Other Participant’s (or
former Participant’s) estimated share
thereof shall be billed by the System’s
facilities manager and shall be payable
to the System’s facilities manager
promptly following receipt. Any
appropriate adjustment will be made
between the System’s facilities manager
and each Other Participant promptly
following the close of each calendar
quarter. The facilities manager shall
forward such payments to the NYSE as
the NYSE may from time to time
instruct the facilities manager.
(e) Liability Limits. Neither the NYSE
nor the facilities manager shall be liable
to any Participant, to any member of any
Participant using or having access to the
NYSE system, or to any other person for
any loss or damage resulting from any
non-performance or interruption in the
operation of the NYSE System, from any
inaccuracies, errors or omissions in any
of the information conveyed or received
through the NYSE System, or from any
delays, omissions, or errors in the
transmissions, or errors in the
transmission of any such information.
(f) Termination.
(i) In the event that the NYSE
determines to withdraw the NYSE
System from use by the Linkage, it shall
so notify the Supervisory Committee, in
writing, a minimum of six months prior
to such withdrawal.
(ii) In the event of such withdrawal,
this section 12 shall be terminated and
the Participants must then determine
whether they should provide for
alternative procedures in the event of
System inoperability.
13. Effective Date
The Linkage Plan shall become
operative on October 1, 2006.
14. Counterparts
The Linkage Plan may be executed in
any number of counterparts, no one of
which need contain all signatures of all
Participants, and as many of such
counterparts as shall together contain all
such signatures shall constitute one and
the same instrument.
Chicago Stock Exchange, Inc.
By lllllllllllllllllll
NASDAQ Stock Market LLC
By lllllllllllllllllll
National Stock Exchange
By lllllllllllllllllll
New York Stock Exchange LLC
By lllllllllllllllllll
NYSE Arca, Inc.
By lllllllllllllllllll
Philadelphia Stock Exchange, Inc.
[FR Doc. E6–12638 Filed 8–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54249; File No. SR–
NASDAQ–2006–017]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Regarding
Technical and Conforming Changes to
Nasdaq’s 1000 Series Rules
July 31, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’), 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 24,
2006, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by Nasdaq. Nasdaq has designated the
proposed rule change as constituting a
non-controversial 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 proposed rule change
effective upon filing with the
Commission.5 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 conform the Rule
1000 Series of Nasdaq’s rules to certain
changes made to the Rule 1000 Series of
the rules of the National Association of
Securities Dealers, Inc. (‘‘NASD’’) since
approval of Nasdaq’s rules by the
Commission in January 2006 and to
correct certain errors in the approved
By lllllllllllllllllll
1 15 U.S.C. 78s(b)(1).
American Stock Exchange LLC
2 17 CFR 240.19b–4.
By lllllllllllllllllll
3 15 U.S.C. 78s(b)(3)(A)(iii).
Boston Stock Exchange, Inc.
4 17 CFR 240.19b–4(f)(6).
By lllllllllllllllllll
5 Nasdaq requested the Commission to waive the
Chicago Board Options Exchange, Inc.
30-day operative delay, as specified in Rule 19b–
By lllllllllllllllllll 4(f)(6)(iii). 17 CFR 240.19b–4(f)(6)(iii).
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Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Notices
rules. Nasdaq proposes to implement
the proposed rule change immediately.
The text of the proposed rule change
is available on Nasdaq’s Web site
(https://www.complinet.com/nasdaq), at
Nasdaq’s principal office, and at the
Commission’s Public Reference Room.
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.
gechino on PROD1PC61 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq is modifying its 1000 Series
Rules, which are based to a substantial
extent on comparable NASD Rules, to
conform them to certain changes made
to the Rule 1000 Series of the rules of
NASD since approval of Nasdaq’s rules
by the Commission in January 2006 and
to correct certain errors in the approved
rules. Specifically, Nasdaq is:
• Amending Nasdaq IM–1002–2
(currently erroneously designated as
IM–1000–2), to conform it to recent
changes to comparable NASD
Interpretive Material. The rule allows
associated persons to be placed on
inactive status, thereby preserving their
registration, while serving in the Armed
Forces of the United States. In SR–
NASD–2005–135,6 NASD tolled the
two-year licensing expiration provisions
under its Rule 1000 Series for a person
previously registered with a member
who commences active military duty
within two years after he or she has
ceased to be registered with the
member, and also tolled the expiration
provisions for a person placed upon
‘‘inactive’’ status pursuant to the
Interpretive Material, who while serving
in the Armed Forces of the United
States, ceases to be registered with a
member. Nasdaq is proposing to adopt
the same tolling provisions as the
NASD.
• Amending Nasdaq Rule 1013 to
reflect changes to the names of the
6 Securities Exchange Act Release No. 53182
(January 26, 2006), 71 FR 5391 (February 1, 2006)
(SR–NASD–2005–135).
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forms used by NASD to authorize access
to its Web CRD system.7
• Correcting an error in the
description of the requirements for
registration as a Limited
Representative—Equity Trader. The
comparable NASD Rule requires an
associated person of an NASD member
engaged in trading ‘‘otherwise than on
a securities exchange’’ to register as an
equity trader and pass the applicable
qualifications examination, known as
the Series 55 exam. Because the trading
systems of The Nasdaq Stock Market,
Inc. had historically been the primary
systems for trading otherwise than on an
exchange, the exam has been focused
largely on the use of those systems.
Nasdaq Rule 1032(f) had likewise been
intended to focus registration and
examination requirements on traders
using Nasdaq systems, but the words
‘‘otherwise than on a securities
exchange’’ were deleted from the rule
without an appropriate substitution.
Accordingly, Nasdaq is amending the
rule to require registration ‘‘with respect
to transactions in equity, preferred or
convertible debt securities on Nasdaq.’’
Thus, if an associated person of a
Nasdaq member is engaged in trading
securities on a venue other than Nasdaq,
the Nasdaq Rule would not require the
trader to register under this category.
• Amending Nasdaq Rules 1011,
1012, 1013, 1032, and 1140 and IM–
1002–4 to correct typographical errors.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,8 in
general, and with Section 6(b)(5) of the
Act,9 in particular, in that the proposal
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
7 See Securities Exchange Act Release No. 53564
(March 29, 2006), 71 FR 16847 (April 4, 2006) (SR–
NASD–2006–038). Web CRD is an NASD system
used by NASD and other SROs for maintenance of
registration information concerning broker-dealers
and their associated persons. Nasdaq members are
required to use Web CRD.
SR–NASD–2006–038 also adopted a uniform
form for registration of NASD members, Form
NMA. Nasdaq is not at this time formally adopting
Form NMA, because of differences between the
requirements of Nasdaq Rule 1013 and the
comparable NASD Rule 1013. Applicants for
Nasdaq membership may, however, use Form NMA
to enhance their understanding of those aspects of
Nasdaq Rule 1013 that directly parallel
requirements of NASD Rule 1013.
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(5).
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44337
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The proposed rule
change conforms the Rule 1000 Series of
Nasdaq’s rules to certain changes made
to the Rule 1000 Series of NASD rules
since approval of Nasdaq’s rules by the
Commission in January 2006 and
corrects certain errors in the approved
rules.
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
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 10 and
Rule 19b–4(f)(6) thereunder 11 because
the 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 pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) 13 thereunder.
Nasdaq has requested that the
Commission waive the 30-day operative
delay.14 The Commission believes that
the waiver of the 30-day operative delay
is consistent with the protection of
investors and the public interest. Waiver
of the 30-day operative period will
allow Nasdaq to implement these
changes immediately so that they can be
in place prior to the time Nasdaq begins
to operate as a national securities
exchange. Accordingly, the Commission
designates the proposal to be effective
10 15
U.S.C. 78s(b)(3)(A).
240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
11 CFR
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44338
Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Notices
and operative upon filing with the
Commission.15
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 the 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:
gechino on PROD1PC61 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR NASDAQ–2006–017 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–NASDAQ–2006–017. 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 (https://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
Section, 100 F Street, NE., Washington,
DC 20549–1090. Copies of such filing
also will be available for inspection and
copying at the principal office of
Nasdaq. All comments received will be
15 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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22:39 Aug 03, 2006
Jkt 208001
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–NASDAQ–2006–017 and
should be submitted on or before
August 25, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–12612 Filed 8–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54252; File No. SR–
NASDAQ–2006–022]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Regarding
Technical and Conforming Changes to
Nasdaq’s 6000, 9000, and 11000 Series
Rules
July 31, 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 July 28,
2006, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’), 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 Nasdaq. Nasdaq has designated the
proposed rule change as constituting a
‘‘non-controversial’’ rule change under
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.
I. Self-Regulatory Organization’s
Statement of Terms of the Substance of
the Proposed Rule Change
Nasdaq proposes to conform the Rule
6000, 9000, and 11000 Series of
Nasdaq’s rules to certain changes made
to the corresponding rule series of the
rules of the National Association of
Securities Dealers, Inc. (‘‘NASD’’) since
approval of Nasdaq’s rules by the
Commission in January 2006 and to
correct certain errors in the approved
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
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rules. Nasdaq proposes to implement
the proposed rule change immediately.
The text of the proposed rule change is
available on Nasdaq’s Web site (https://
www.nasdaq.com), at Nasdaq’s
principal office and at the Commission’s
Public Reference Room.
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 is modifying its 6000, 9000
and 11000 Series Rules to conform them
to certain changes made to the
corresponding NASD rule series since
approval of Nasdaq’s rules by the
Commission in January 2006 and to
correct certain errors in the approved
rules. Specifically, Nasdaq is:
• Amending Nasdaq Rule 6951 to
reflect the effectiveness of a change to
the definition of ‘‘Reporting Member.’’
• Adding Nasdaq Rule 6958 to
provide exemptive authority
comparable to the authority provided to
NASD by NASD Rule 6958.4
• Amending Nasdaq Rule 9120 to
reflect the deletion, effective August 28,
2006, of the Nasdaq Rule 5000 Series
and to eliminate an erroneous reference
to the Nasdaq Rule 7000 Series.5
• Amending Nasdaq IM–11810 in
accordance with changes to NASD IM–
11810 made by SR–NASD–2005–087.6
• Amending Nasdaq Rule 11890 to
reflect changes made to NASD Rule
11890 by SR–NASD–2006–033.7
• Amending Nasdaq Rules 6250,
6800, 6954, 9110, 11310, and 11840 and
4 Securities Exchange Act Release Nos. 53819
(May 17, 2006), 71 FR 29697 (May 23, 2006) (SR–
NASD–2006–052); and 53580 (March 30, 2006), 71
FR 17529 (April 4, 2006) (SR–NASD–2006–040).
5 Securities Exchange Act Release No. 54155 (July
14, 2006), 71 FR 41291 (July 20, 2006) (SR–
NASDAQ–2006–001).
6 Securities Exchange Act Release No. 54084
(June 30, 2006), 71 FR 38935 (July 10, 2006) (SR–
NASD–2005–087).
7 Securities Exchange Act Release No. 53541
(March 22, 2006), 71 FR 15792 (March 29, 2006)
(SR–NASD–2006–033).
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]]>Agencies
[Federal Register Volume 71, Number 150 (Friday, August 4, 2006)]
[Notices]
[Pages 44336-44338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12612]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54249; File No. SR-NASDAQ-2006-017]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Technical and Conforming Changes to Nasdaq's 1000 Series
Rules
July 31, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''), \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 24, 2006, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (the ``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by Nasdaq. Nasdaq has designated the proposed rule
change as constituting a non-controversial 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 proposed rule change effective upon
filing with the Commission.\5\ 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ Nasdaq requested the Commission to waive the 30-day
operative delay, as specified in Rule 19b-4(f)(6)(iii). 17 CFR
240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to conform the Rule 1000 Series of Nasdaq's rules
to certain changes made to the Rule 1000 Series of the rules of the
National Association of Securities Dealers, Inc. (``NASD'') since
approval of Nasdaq's rules by the Commission in January 2006 and to
correct certain errors in the approved
[[Page 44337]]
rules. Nasdaq proposes to implement the proposed rule change
immediately.
The text of the proposed rule change is available on Nasdaq's Web
site (https://www.complinet.com/nasdaq), at Nasdaq's principal office,
and at the Commission's Public Reference Room.
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 is modifying its 1000 Series Rules, which are based to a
substantial extent on comparable NASD Rules, to conform them to certain
changes made to the Rule 1000 Series of the rules of NASD since
approval of Nasdaq's rules by the Commission in January 2006 and to
correct certain errors in the approved rules. Specifically, Nasdaq is:
Amending Nasdaq IM-1002-2 (currently erroneously
designated as IM-1000-2), to conform it to recent changes to comparable
NASD Interpretive Material. The rule allows associated persons to be
placed on inactive status, thereby preserving their registration, while
serving in the Armed Forces of the United States. In SR-NASD-2005-
135,\6\ NASD tolled the two-year licensing expiration provisions under
its Rule 1000 Series for a person previously registered with a member
who commences active military duty within two years after he or she has
ceased to be registered with the member, and also tolled the expiration
provisions for a person placed upon ``inactive'' status pursuant to the
Interpretive Material, who while serving in the Armed Forces of the
United States, ceases to be registered with a member. Nasdaq is
proposing to adopt the same tolling provisions as the NASD.
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 53182 (January 26,
2006), 71 FR 5391 (February 1, 2006) (SR-NASD-2005-135).
---------------------------------------------------------------------------
Amending Nasdaq Rule 1013 to reflect changes to the names
of the forms used by NASD to authorize access to its Web CRD system.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 53564 (March 29,
2006), 71 FR 16847 (April 4, 2006) (SR-NASD-2006-038). Web CRD is an
NASD system used by NASD and other SROs for maintenance of
registration information concerning broker-dealers and their
associated persons. Nasdaq members are required to use Web CRD.
SR-NASD-2006-038 also adopted a uniform form for registration of
NASD members, Form NMA. Nasdaq is not at this time formally adopting
Form NMA, because of differences between the requirements of Nasdaq
Rule 1013 and the comparable NASD Rule 1013. Applicants for Nasdaq
membership may, however, use Form NMA to enhance their understanding
of those aspects of Nasdaq Rule 1013 that directly parallel
requirements of NASD Rule 1013.
---------------------------------------------------------------------------
Correcting an error in the description of the requirements
for registration as a Limited Representative--Equity Trader. The
comparable NASD Rule requires an associated person of an NASD member
engaged in trading ``otherwise than on a securities exchange'' to
register as an equity trader and pass the applicable qualifications
examination, known as the Series 55 exam. Because the trading systems
of The Nasdaq Stock Market, Inc. had historically been the primary
systems for trading otherwise than on an exchange, the exam has been
focused largely on the use of those systems. Nasdaq Rule 1032(f) had
likewise been intended to focus registration and examination
requirements on traders using Nasdaq systems, but the words ``otherwise
than on a securities exchange'' were deleted from the rule without an
appropriate substitution. Accordingly, Nasdaq is amending the rule to
require registration ``with respect to transactions in equity,
preferred or convertible debt securities on Nasdaq.'' Thus, if an
associated person of a Nasdaq member is engaged in trading securities
on a venue other than Nasdaq, the Nasdaq Rule would not require the
trader to register under this category.
Amending Nasdaq Rules 1011, 1012, 1013, 1032, and 1140 and
IM-1002-4 to correct typographical errors.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\8\ in general, and with Section
6(b)(5) of the Act,\9\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The proposed rule change
conforms the Rule 1000 Series of Nasdaq's rules to certain changes made
to the Rule 1000 Series of NASD rules since approval of Nasdaq's rules
by the Commission in January 2006 and corrects certain errors in the
approved rules.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
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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
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder
\11\ because the 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 pursuant to Section 19(b)(3)(A) of
the Act \12\ and Rule 19b-4(f)(6) \13\ thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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Nasdaq has requested that the Commission waive the 30-day operative
delay.\14\ The Commission believes that the waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Waiver of the 30-day operative period will allow
Nasdaq to implement these changes immediately so that they can be in
place prior to the time Nasdaq begins to operate as a national
securities exchange. Accordingly, the Commission designates the
proposal to be effective
[[Page 44338]]
and operative upon filing with the Commission.\15\
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\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For the purposes only of waiving the operative date of this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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 the 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR NASDAQ-2006-017 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-NASDAQ-2006-017. 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 (https://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 Section, 100 F Street,
NE., Washington, DC 20549-1090. 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-NASDAQ-2006-
017 and should be submitted on or before August 25, 2006.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-12612 Filed 8-3-06; 8:45 am]
BILLING CODE 8010-01-P
