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 7000 Series Rules, 45084-45086 [E6-12840]
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45084
Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–12842 Filed 8–7–06; 8:45 am]
Specialists have certain obligations
under Exchange rules, as well as the
Act, that do not exist for other market
participants. For example, pursuant to
Amex Rule 170, a specialist is required
to maintain a fair and orderly market in
his or her assigned securities. Other
members of the Exchange, as well as
non-member market participants, do not
have this obligation. As a result, the
Exchange believes that the proposed
retroactive suspension of transaction
charges for specialist orders in the
QQQQ is reasonable and equitable,
given the obligations that specialists
must adhere to in making markets. The
Exchange further submits that the fee
suspension will provide greater
incentive to specialists to continue to
provide market liquidity, rendering the
Exchange an attractive venue for market
participants to execute orders.
Electronic Comments
[Release No. 34–54260; File No. SR–
NASDAQ–2006–024]
• 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–Amex–2006–64 on the
subject line.
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 7000 Series Rules
2. Statutory Basis
Paper Comments
August 1, 2006.
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b) of the
Act,10 in general, and furthers the
objectives of Section 6(b)(4) of the Act,11
in particular, and is an equitable
allocation of reasonable dues, fees, and
other charges among its members and
issuers and other persons using its
facilities.
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Amex–2006–64. 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
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of Amex. 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–Amex–2006–64 and should
be submitted on or before August 29,
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 31,
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 filed the proposed rule change as a
‘‘non-controversial’’ rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change does not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the 1934 Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
jlentini on PROD1PC65 with 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 the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, as amended, or
10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
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20:06 Aug 07, 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, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
12 17
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BILLING CODE 8010–01–P
SECURTITES AND EXCHANGE
COMMISSION /
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to conform the Rule
7000 Series of Nasdaq’s rules to certain
changes made to the Rule 7000 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
rules. Nasdaq proposes to implement
the proposed rule change on August 1,
2006. The text of the proposed rule
change is available on Nasdaq’s Web
site at https://www.nasdaq.com, at the
principal office of Nasdaq, and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices
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
jlentini on PROD1PC65 with NOTICES
1. Purpose
Nasdaq is modifying its 7000 Series
Rules to reflect certain changes made to
the Rule 7000 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 Rule 7015 to
reflect changes to NASD Rule 7010(f) by
SR–NASD–2006–026, SR–NASD–2006–
027, and SR–NASD–2006–043.5 The
amendments to Nasdaq Rule 7015 also
reflect prior Commission approvals for
the application of NASD Rule 7010(f) to
non-members, such as service bureaus,
that obtain access services from Nasdaq.
• Amending Nasdaq Rule 7017 to
restore a pilot program for NQDS fees
for non-professional users that had
lapsed at the time of the approval of
Nasdaq’s exchange registration
application but that was restored under
NASD rules in SR–NASD–2006–009.6
• Amending Nasdaq Rule 7021 to
reflect changes to NASD Rule 7010(n)
made by SR–NASD–2006–072.7
• Adding NASDAQ Rule 7034 to
reflect the addition of Inet connectivity
fees to NASD Rule 7010(w) in SR–
NASD–2005–147 and SR–NASD–2005–
148 8 and subsequent amendments to
the Rule by SR–NASD–2006–013, SR–
5 Securities Exchange Act Release Nos. 53536
(March 21, 2006), 71 FR 15784 (March 29, 2006)
(SR–NASD–2006–026); 53535 (March 21, 2006), 71
FR 15788 (March 29, 2006) (SR–NASD–2006–027);
and 53617 (April 7, 2006), 71 FR 19597 (April 14,
2006) (SR–NASD–2006–043).
6 Securities Exchange Act Release No. 53255
(February 8, 2006), 71 FR 8016 (February 15, 2006)
(SR–NASD–2006–009).
7 Securities Exchange Act Release No. 54002
(June 16, 2006), 71 FR 36143 (June 23, 2006) (SR–
NASD–2006–072).
8 Securities Exchange Act Release Nos. 53005
(December 22, 2005), 70 FR 77215 (December 29,
2005) (SR–NASD–2005–147); and 53006 (December
22, 2005), 70 FR 77220 (March 29, 2006) (SR–
NASD–2005–148).
VerDate Aug<31>2005
20:06 Aug 07, 2006
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NASD–2006–031 and SR–NASD–2006–
032.9
• Adding Nasdaq Rule 7035 to reflect
the addition of NASD Rule 7010(x) in
SR–NASD–2006–030.10
• Adding Nasdaq Rule 7036 to reflect
the addition of NASD Rule 7010(y) in
SR–NASD–2006–056.11
• Amending Nasdaq Rules 7011,
7025, 7028, and 7033 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,12 in
general, and with Sections 6(b)(4) and
(5) of the Act,13 in particular, in that the
proposal provides for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system which Nasdaq
operates or controls, and 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.
Nasdaq believes the proposed rule
change conforms the Rule 7000 Series of
Nasdaq’s rules to certain changes made
to the Rule 7000 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.
9 Securities Exchange Act Release Nos. 53256
(February 8, 2006), 71 FR 8020 (February 15, 2006)
(SR–NASD–2006–013); 53504 (March 16, 2006), 71
FR 14760 (March 23, 2006) (SR–NASD–2006–031);
and 53505 (March 16, 2006), 71 FR 14758 (March
23, 2006) (SR–NASD–2006–032).
10 Securities Exchange Act Release No. 54005
(June 16, 2006), 71 FR 36145 (June 23, 2006) (SR–
NASD–2006–030).
11 Securities Exchange Act Release No. 54003
(June 16, 2006), 71 FR 36141 (June 23, 2006) (SR–
NASD–2006–056).
12 15 U.S.C. 78f.
13 15 U.S.C. 78f(b)(4) and (5).
PO 00000
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45085
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
Because the forgoing rule change does
not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.16 However, Rule 19b–
4(f)(6)(iii) 17 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.
Nasdaq provided the Commission with
written notice of its intent to file this
proposed rule change at least five
business days prior to the date of filing
the proposed rule change. In addition,
Nasdaq has requested that the
Commission waive the 30-day preoperative delay, and the Commission
hereby grants that request.18 The
Commission believes that waiving the
30-day pre-operative delay is consistent
with the protection of investors and in
the public interest because it will allow
Nasdaq to implement the rule changes,
which have either recently been made
effective as changes to NASD rules or
are technical in nature, at the time when
Nasdaq begins to operate as a national
securities exchange.
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 furtherance of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 Id.
18 For the purposes only of waiving the 30-day
pre-operative delay, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
15 17
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45086
Federal Register / Vol. 71, No. 152 / Tuesday, August 8, 2006 / Notices
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 rulecomments@sec.gov. Please include File
No. SR–NASDAQ–2006–024 on the
subject line.
Paper Comments
jlentini on PROD1PC65 with NOTICES
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
No. SR–NASDAQ–2006–024. 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
Room. Copies of such filing will also 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 No.
SR–NASDAQ–2006–024 and should be
submitted on or before August 29, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
Nancy M. Morris,
Secretary.
[FR Doc. E6–12840 Filed 8–7–06; 8:45 am]
BILLING CODE 8010–01–P
19 17
CFR 200.30–3(a)(12).
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20:06 Aug 07, 2006
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SECURITIES AND EXCHANGE
COMMISSION
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
[Release No. 34–54255; File No. SR–NYSE–
2005–03]
The Exchange is proposing to amend
Rule 325, Rule 326, and Rule 431 to
reflect recent SEC rule amendments
under the Exchange Act, including
amendments to Exchange Act Rule
15c3–1 that established an alternative
method of computing net capital for
broker-dealers.
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change and
Amendments Nos. 1 and 2 To Amend
Exchange Rule 325 (Capital
Requirements for Member
Organizations), Rule 326 (Growth
Capital Requirement, Business
Reduction Capital Requirement,
Unsecured Loans and Advances), and
Rule 431 (Margin Requirement)
July 31, 2006.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’),2 and Rule 19b–4
thereunder,3 notice is hereby given that
on January 5, 2005, the New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange.4 The NYSE
filed Amendment No. 1 to the proposed
rule change on February 13, 2006.5 The
NYSE filed Amendment No. 2 to the
proposed rule change on March 17,
2006.6 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a et seq.
3 17 CFR 240.19b–4.
4 Pursuant to discussions with the Commission
staff, the Exchange clarified the application of
proposed amendments to NYSE Rules 325, 326 and
431 to reflect the Exchange’s March 7, 2006 merger
with Archipelago Holdings, Inc. (‘‘Archipelago’’),
adjustments to capital levels in Rule 326 and other
general editorial changes. Telephone conversations
between William Jannace, Director, Exchange,
William Wollman, Vice President, Exchange and E.
David Hwa, Special Counsel, Division of Market
Regulation, Commission, on May 11, 2006, June 8,
2006, July 19, 2006 and email dated July 19, 2006.
5 In Amendment No. 1, the Exchange clarified the
application of proposed amendments to NYSE Rule
431(e)(9) solely to OTC derivatives transactions and
expanded upon elements of the written risk
analysis provided by the proposed rule for member
organizations utilizing the alternative method of
computing net capital.
6 In Amendment No. 2, the Exchange clarified the
application of proposed amendments to NYSE Rule
326 to make explicit the ability of the Exchange to
restrict the growth or business of a member
organization, respectively, when its tentative net
capital declines below the early warning
notification amount required by the Exchange Act
Rule 15c3–1(a)(7)(ii).
2 15
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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. The
Exchange 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
Background
Exchange Act Rule 15c3–1 (the ‘‘net
capital rule’’) contains basic financial
responsibility standards for brokerdealers. The rule is intended to protect
customers and other market participants
from broker-dealer failures, and to
enable those firms that fall below the
minimum net capital requirements to
liquidate in an orderly fashion without
the need for a formal proceeding or
financial assistance from the Securities
Investor Protection Corporation. To help
insure that broker-dealers maintain
sufficient liquid assets to satisfy
promptly the claims of customers and
cover potential market and credit risks,
the net capital rule requires brokerdealers to maintain different minimum
levels of capital based upon the nature
of their business and whether they
handle customer funds or securities.
On August 20, 2004, the SEC adopted
rule amendments under the Exchange
Act, including amendments to Exchange
Act Rule 15c3–1, that establish a
voluntary, alternative method of
computing net capital for certain large
broker-dealers that are part of
consolidated supervised groups referred
to as consolidated supervised entities
(‘‘CSEs’’). Under the SEC amendments,
a broker-dealer may use this
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]]>Agencies
[Federal Register Volume 71, Number 152 (Tuesday, August 8, 2006)]
[Notices]
[Pages 45084-45086]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12840]
-----------------------------------------------------------------------
SECURTITES AND EXCHANGE COMMISSION /
[Release No. 34-54260; File No. SR-NASDAQ-2006-024]
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 7000 Series
Rules
August 1, 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 31, 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 filed the proposed rule change as a
``non-controversial'' rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to conform the Rule 7000 Series of Nasdaq's rules
to certain changes made to the Rule 7000 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 rules. Nasdaq proposes to
implement the proposed rule change on August 1, 2006. The text of the
proposed rule change is available on Nasdaq's Web site at https://
www.nasdaq.com, at the principal office of Nasdaq, and at the
Commission's Public Reference Room.
[[Page 45085]]
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 7000 Series Rules to reflect certain
changes made to the Rule 7000 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 Rule 7015 to reflect changes to NASD Rule
7010(f) by SR-NASD-2006-026, SR-NASD-2006-027, and SR-NASD-2006-043.\5\
The amendments to Nasdaq Rule 7015 also reflect prior Commission
approvals for the application of NASD Rule 7010(f) to non-members, such
as service bureaus, that obtain access services from Nasdaq.
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release Nos. 53536 (March 21, 2006),
71 FR 15784 (March 29, 2006) (SR-NASD-2006-026); 53535 (March 21,
2006), 71 FR 15788 (March 29, 2006) (SR-NASD-2006-027); and 53617
(April 7, 2006), 71 FR 19597 (April 14, 2006) (SR-NASD-2006-043).
---------------------------------------------------------------------------
Amending Nasdaq Rule 7017 to restore a pilot program for
NQDS fees for non-professional users that had lapsed at the time of the
approval of Nasdaq's exchange registration application but that was
restored under NASD rules in SR-NASD-2006-009.\6\
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 53255 (February 8,
2006), 71 FR 8016 (February 15, 2006) (SR-NASD-2006-009).
---------------------------------------------------------------------------
Amending Nasdaq Rule 7021 to reflect changes to NASD Rule
7010(n) made by SR-NASD-2006-072.\7\
Adding NASDAQ Rule 7034 to reflect the addition of Inet
connectivity fees to NASD Rule 7010(w) in SR-NASD-2005-147 and SR-NASD-
2005-148 \8\ and subsequent amendments to the Rule by SR-NASD-2006-013,
SR-NASD-2006-031 and SR-NASD-2006-032.\9\
---------------------------------------------------------------------------
\7\ Securities Exchange Act Release No. 54002 (June 16, 2006),
71 FR 36143 (June 23, 2006) (SR-NASD-2006-072).
\8\ Securities Exchange Act Release Nos. 53005 (December 22,
2005), 70 FR 77215 (December 29, 2005) (SR-NASD-2005-147); and 53006
(December 22, 2005), 70 FR 77220 (March 29, 2006) (SR-NASD-2005-
148).
\9\ Securities Exchange Act Release Nos. 53256 (February 8,
2006), 71 FR 8020 (February 15, 2006) (SR-NASD-2006-013); 53504
(March 16, 2006), 71 FR 14760 (March 23, 2006) (SR-NASD-2006-031);
and 53505 (March 16, 2006), 71 FR 14758 (March 23, 2006) (SR-NASD-
2006-032).
---------------------------------------------------------------------------
Adding Nasdaq Rule 7035 to reflect the addition of NASD
Rule 7010(x) in SR-NASD-2006-030.\10\
---------------------------------------------------------------------------
\10\ Securities Exchange Act Release No. 54005 (June 16, 2006),
71 FR 36145 (June 23, 2006) (SR-NASD-2006-030).
---------------------------------------------------------------------------
Adding Nasdaq Rule 7036 to reflect the addition of NASD
Rule 7010(y) in SR-NASD-2006-056.\11\
---------------------------------------------------------------------------
\11\ Securities Exchange Act Release No. 54003 (June 16, 2006),
71 FR 36141 (June 23, 2006) (SR-NASD-2006-056).
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Amending Nasdaq Rules 7011, 7025, 7028, and 7033 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,\12\ in general, and with
Sections 6(b)(4) and (5) of the Act,\13\ in particular, in that the
proposal provides for the equitable allocation of reasonable dues, fees
and other charges among members and issuers and other persons using any
facility or system which Nasdaq operates or controls, and 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. Nasdaq believes the proposed
rule change conforms the Rule 7000 Series of Nasdaq's rules to certain
changes made to the Rule 7000 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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\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(4) and (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.
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
Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to Section 19(b)(3)(A)
of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\16\
However, Rule 19b-4(f)(6)(iii) \17\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. Nasdaq provided the Commission with
written notice of its intent to file this proposed rule change at least
five business days prior to the date of filing the proposed rule
change. In addition, Nasdaq has requested that the Commission waive the
30-day pre-operative delay, and the Commission hereby grants that
request.\18\ The Commission believes that waiving the 30-day pre-
operative delay is consistent with the protection of investors and in
the public interest because it will allow Nasdaq to implement the rule
changes, which have either recently been made effective as changes to
NASD rules or are technical in nature, at the time when Nasdaq begins
to operate as a national securities exchange.
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\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ Id.
\18\ For the purposes only of waiving the 30-day pre-operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 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 furtherance of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
[[Page 45086]]
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 No. SR-NASDAQ-2006-024 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-NASDAQ-2006-024. 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 Room. Copies of such
filing will also 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 No. SR-NASDAQ-2006-024 and should be submitted on or before August
29, 2006.
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\19\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\19\
Nancy M. Morris,
Secretary.
[FR Doc. E6-12840 Filed 8-7-06; 8:45 am]
BILLING CODE 8010-01-P
