Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Allow for the Digital Recording of Arbitration Hearings, 55536-55537 [06-8001]
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55536
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54455; File No. SR–NASD–
2006–102]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Allow for the Digital
Recording of Arbitration Hearings
September 15, 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 August
23, 2006, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by NASD. NASD
has designated this proposal as
concerned solely with the
administration of a self-regulatory
organization pursuant to section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(3) thereunder,4 which renders
the proposed rule change 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 the Terms of Substance of
the Proposed Rule Change
NASD is proposing to amend Rule
10326 of the NASD Code of Arbitration
Procedure (‘‘Code’’) to allow for the
digital or other recording of arbitration
hearings.
Below is the text of the proposed rule
change.5 Proposed new language is in
italics.
*
*
*
*
*
10326. Record of Proceedings
(a) A verbatim record by stenographic
reporter or a tape, digital, or other
recording of all arbitration hearings
shall be kept. If a party or parties to a
dispute elect to have the record
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)(3).
5 The rules proposed in this filing will be
renumbered as appropriate following Commission
approval of the pending revisions to the NASD
Code of Arbitration Procedure for Customer
Disputes; see Securities Exchange Act Release No.
51856 (June 15, 2005), 70 FR 36442 (June 23, 2005)
(SR–NASD–2003–158); and the NASD Code of
Arbitration Procedure for Industry Disputes; see
Securities Exchange Act Release No. 51857 (June
15, 2005), 70 FR 36430 (June 23, 2005) (SR–NASD–
2004–011).
sroberts on PROD1PC70 with NOTICES
2 17
VerDate Aug<31>2005
20:37 Sep 21, 2006
Jkt 208001
transcribed, the cost of such
transcription shall be borne by the party
or parties making the request unless the
arbitrators direct otherwise. The
arbitrators may also direct that the
record be transcribed. If the record is
transcribed at the request of any party,
a copy shall be provided to the
arbitrators.
(b) No change
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASD 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. NASD 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
The purpose of the proposed rule
change is to amend Rule 10326 of the
Code to allow for the digital or other
recording of arbitration hearings.
Rule 10326 of the Code currently
requires arbitration hearings to be
recorded either by a stenographic
reporter or through the use of a tape
recorder. Since its inception in 1968,
NASD Dispute Resolution has used tape
recorders to fulfill this obligation.
In response to constituent suggestions
that NASD consider upgrading its
recording technology, NASD intends to
formally evaluate the digital recording
of its arbitration hearings.6 The
evaluation will help to ascertain how
well arbitrators adapt to using digital
recording equipment, the quality of the
recordings, the appropriate file storage
format(s), and the best means for
disseminating and storing audio files.
Since Rule 10326 currently does not
allow for the use of digital recording
equipment, NASD is proposing to revise
the rule to expand the permissible
methods of recording arbitration
hearings to allow for the use of ‘‘digital
or other’’ recording devices. This change
will allow NASD to use digital
6 Digital recording is the recording and storing of
audio data through use of one of several computer
file formats, such as MP3, AVI, WAV, etc., rather
than using tape. These files can be stored
electronically, and sent via e-mail.
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
recording technology, or another
recording method, should such
technology prove to be superior to the
tape recording system that is currently
in use.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of section 15A(b)(6) of the Act, 7 which
requires, among other things, that
NASD’s rules be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
NASD believes that the proposed rule
change is consistent with the provision
of the Act noted above because it will
provide additional options for the
recording of arbitration hearings, which
may be better than the current
alternatives available under the Code.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD 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
The foregoing rule change has become
effective pursuant to section
19(b)(3)(A)(iii) of the Act 8 and
subparagraph (f)(3) of Rule 19b–4
thereunder 9 as it is concerned solely
with the administration of a selfregulatory organization.
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
purposes of the Act.10
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
7 15
U.S.C. 78o–3(b)(6).
U.S.C. 78s(b)(3)(a)(iii).
9 17 CFR 240.19b–4(f)(3).
10 See section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
8 15
E:\FR\FM\22SEN1.SGM
22SEN1
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices
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
Number SR–NASD–2006–102 on the
subject line.
[Release No. 34–54319A; File No. SR–
NASD–2006–060]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change To Require
Members To File Regulatory Notices
With NASD Electronically
change as described in Items I, II, and
III below, which Items have been
prepared by NYSE Arca. 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
SECURITIES AND EXCHANGE
COMMISSION
September 18, 2006.
Correction:
In FR Document No. E6–13812,
beginning on page 48959 for Tuesday
• Send paper comments in triplicate
August 22, 2006, the first sentence
to Nancy M. Morris, Secretary,
under ‘‘Statutory Basis’’ in column 1
Securities and Exchange Commission,
should read as follows:
100 F Street, NE., Washington, DC
NASD believes that the proposed rule
20549–1090.
change is consistent with the provisions
of Section 15A(b)(6) of the Act,1 which
All submissions should refer to File
requires, among other things, that NASD
Number SR–NASD–2006–102. This file
rules must be designed to prevent
number should be included on the
subject line if e-mail is used. To help the fraudulent and manipulative acts and
practices, to promote just and equitable
Commission process and review your
principles of trade, and, in general, to
comments more efficiently, please use
protect investors and the public interest,
only one method. The Commission will
in that the proposed rule change will
post all comments on the Commission’s
permit the expeditious filing of
Internet Web site (https://www.sec.gov/
specified required regulatory notices
rules/sro.shtml). Copies of the
and other required submissions by
submission, all subsequent
requiring firms to file such reports and
amendments, all written statements
documents with NASD electronically.
with respect to the proposed rule
For the Commission, by the Division of
change that are filed with the
Market Regulation, pursuant to delegated
Commission, and all written
authority.2
communications relating to the
Jill M. Peterson,
proposed rule change between the
Assistant Secretary.
Commission and any person, other than [FR Doc. 06–8040 Filed 9–21–06; 8:45 am]
those that may be withheld from the
BILLING CODE 8010–01–M
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
SECURITIES AND EXCHANGE
the Commission’s Public Reference
COMMISSION
Room. Copies of such filing also will be
[Release No. 34–54466; File No. SR–
available for inspection and copying at
NYSEArca–2006–48]
the principal office of NASD. All
comments received will be posted
Self-Regulatory Organizations; NYSE
without change; the Commission does
Arca, Inc.; Notice of Filing of Proposed
not edit personal identifying
Rule Change To Amend NYSE Arca
Equities, Inc.’s Clearly Erroneous
information from submissions. You
Executions Rule To Include an Appeal
should submit only information that
you wish to make available publicly. All Fee for the Archipelago Exchange
submissions should refer to File
September 18, 2006.
Number SR–NASD–2006–102 and
Pursuant to Section 19(b)(1) of the
should be submitted on or before
Securities Exchange Act of 1934
October 13, 2006.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
sroberts on PROD1PC70 with NOTICES
Paper Comments
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06–8001 Filed 9–21–06; 8:45 am]
BILLING CODE 8010–01–P
11 17
VerDate Aug<31>2005
20:37 Sep 21, 2006
notice is hereby given that on August
11, 2006, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
1 15
U.S.C. 78o–3(b)(6).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
2 17
CFR 200.30–3(a)(12).
Jkt 208001
55537
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Frm 00122
Fmt 4703
Sfmt 4703
NYSE Arca proposes to amend NYSE
Arca Equities Rule 7.10 governing
clearly erroneous executions (‘‘CEE’’) on
the Archipelago Exchange, the equities
trading facility of NYSE Arca Equities,
Inc. (‘‘NYSE Arca Equities’’).
Specifically, the Exchange proposes to
assess a fee associated with the
appellate mechanism of NYSE Arca
Equities Rule 7.10.
The text of the proposed rule change
is available on NYSE Arca’s Web site
(https://www.nysearca.com), at NYSE
Arca’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,
NYSE Arca 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. NYSE
Arca 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
The Exchange amended NYSE Arca
Equities Rule 7.10 (Clearly Erroneous
Executions) to include subsections
(c)(2)–(4), which amendment became
effective May 16, 2005. NYSE Arca
Equities Rules 7.10(c)(2)–(4) provide for
an appeals panel that includes the
Exchange’s Chief Regulatory Officer
(‘‘CRO’’), or a designee of the CRO, and
two representatives from Equity Trading
Permit (‘‘ETP’’) Holders (together with
the CRO, the ‘‘CEE Panel’’) to review the
determination of clearly erroneous
executions that are made by an NYSE
Arca Equities officer under NYSE Arca
Equities Rule 7.10(c)(1).
As part of its continuing efforts to
enhance the appeal process, the
Exchange proposes to add NYSE Arca
E:\FR\FM\22SEN1.SGM
22SEN1
Agencies
[Federal Register Volume 71, Number 184 (Friday, September 22, 2006)]
[Notices]
[Pages 55536-55537]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8001]
[[Page 55536]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54455; File No. SR-NASD-2006-102]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Allow for the Digital Recording of Arbitration Hearings
September 15, 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 August 23, 2006, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by NASD. NASD has
designated this proposal as concerned solely with the administration of
a self-regulatory organization pursuant to section 19(b)(3)(A)(iii) of
the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\ which renders the
proposed rule change 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)(iii).
\4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD is proposing to amend Rule 10326 of the NASD Code of
Arbitration Procedure (``Code'') to allow for the digital or other
recording of arbitration hearings.
Below is the text of the proposed rule change.\5\ Proposed new
language is in italics.
---------------------------------------------------------------------------
\5\ The rules proposed in this filing will be renumbered as
appropriate following Commission approval of the pending revisions
to the NASD Code of Arbitration Procedure for Customer Disputes; see
Securities Exchange Act Release No. 51856 (June 15, 2005), 70 FR
36442 (June 23, 2005) (SR-NASD-2003-158); and the NASD Code of
Arbitration Procedure for Industry Disputes; see Securities Exchange
Act Release No. 51857 (June 15, 2005), 70 FR 36430 (June 23, 2005)
(SR-NASD-2004-011).
---------------------------------------------------------------------------
* * * * *
10326. Record of Proceedings
(a) A verbatim record by stenographic reporter or a tape, digital,
or other recording of all arbitration hearings shall be kept. If a
party or parties to a dispute elect to have the record transcribed, the
cost of such transcription shall be borne by the party or parties
making the request unless the arbitrators direct otherwise. The
arbitrators may also direct that the record be transcribed. If the
record is transcribed at the request of any party, a copy shall be
provided to the arbitrators.
(b) No change
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD 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. NASD 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
The purpose of the proposed rule change is to amend Rule 10326 of
the Code to allow for the digital or other recording of arbitration
hearings.
Rule 10326 of the Code currently requires arbitration hearings to
be recorded either by a stenographic reporter or through the use of a
tape recorder. Since its inception in 1968, NASD Dispute Resolution has
used tape recorders to fulfill this obligation.
In response to constituent suggestions that NASD consider upgrading
its recording technology, NASD intends to formally evaluate the digital
recording of its arbitration hearings.\6\ The evaluation will help to
ascertain how well arbitrators adapt to using digital recording
equipment, the quality of the recordings, the appropriate file storage
format(s), and the best means for disseminating and storing audio
files.
---------------------------------------------------------------------------
\6\ Digital recording is the recording and storing of audio data
through use of one of several computer file formats, such as MP3,
AVI, WAV, etc., rather than using tape. These files can be stored
electronically, and sent via e-mail.
---------------------------------------------------------------------------
Since Rule 10326 currently does not allow for the use of digital
recording equipment, NASD is proposing to revise the rule to expand the
permissible methods of recording arbitration hearings to allow for the
use of ``digital or other'' recording devices. This change will allow
NASD to use digital recording technology, or another recording method,
should such technology prove to be superior to the tape recording
system that is currently in use.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act, \7\ which requires, among
other things, that NASD's rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. NASD believes that the proposed rule change is
consistent with the provision of the Act noted above because it will
provide additional options for the recording of arbitration hearings,
which may be better than the current alternatives available under the
Code.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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
The foregoing rule change has become effective pursuant to section
19(b)(3)(A)(iii) of the Act \8\ and subparagraph (f)(3) of Rule 19b-4
thereunder \9\ as it is concerned solely with the administration of a
self-regulatory organization.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(a)(iii).
\9\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
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 purposes of the Act.\10\
---------------------------------------------------------------------------
\10\ See section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
[[Page 55537]]
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-NASD-2006-102 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-NASD-2006-102. 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 NASD. 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-NASD-2006-102 and should be submitted on or before October 13, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06-8001 Filed 9-21-06; 8:45 am]
BILLING CODE 8010-01-P