Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of Proposed Rule Change To Eliminate Registration of Foreign Associates Under Nasdaq Membership Rules, 57010-57011 [E6-15897]

Download as PDF 57010 Federal Register / Vol. 71, No. 188 / Thursday, September 28, 2006 / Notices payment accepting firms with whom a specialist has negotiated a payment for order flow arrangement. SPDR Options are currently subject to a $1.00 per contract fee. The Amex states that this fee solely applies to those orders that are executed electronically through the Exchange’s ANTE system. The Exchange now proposes to allow SROTs to negotiate such an arrangement from any affiliated OFPs from which they receive the guaranteed SROT allocation. Payment collected on SROT trades would be set aside for that particular SROT. In addition, fees would be collected from any SROT, specialist, or ROT who participates in the trade. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act,8 in general, and furthers the objectives of section 6(b)(4) of the Act,9 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Amex members and other persons using Amex facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose 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 The Exchange neither solicited nor received comments with respect to the proposed rule change. sroberts on PROD1PC70 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has been designated as a fee change pursuant to section 19(b)(3)(A)(ii) of the Act 10 and Rule 19b–4(f)(2) 11 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. At any time within 60 days of the filing of such 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 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b–4(f)(2). 9 15 VerDate Aug<31>2005 20:16 Sep 27, 2006 Jkt 208001 the protection of investors, or otherwise in 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2006–79 on the subject line. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–15925 Filed 9–27–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54478; File No. SR– NASDAQ–2006–016] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of Proposed Rule Change To Eliminate Registration of Foreign Associates Under Nasdaq Membership Rules September 21, 2006. On July 21, 2006, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) submitted to the Paper Comments Securities and Exchange Commission (‘‘Commission’’), pursuant to Section • Send paper comments in triplicate 19(b)(1) of the Securities Exchange Act to Nancy M. Morris, Secretary, of 1934 (‘‘Act’’) 1 and Rule 19b–4 Securities and Exchange Commission, thereunder,2 a proposed rule change to 100 F Street, NE., Washington, DC eliminate the requirement for foreign 20549–1090. associates to register with Nasdaq. The All submissions should refer to File proposed rule change was published for Number SR–Amex–2006–79. This file comment in the Federal Register on number should be included on the August 15, 2006.3 The Commission subject line if e-mail is used. To help the received no comments on the proposed Commission process and review your rule change. The Commission finds that the comments more efficiently, please use only one method. The Commission will proposed rule change is consistent with post all comments on the Commission’s the requirements of the Act and the rules and regulations thereunder that Internet Web site (http://www.sec.gov/ are applicable to a national securities rules/sro.shtml). Copies of the exchange.4 In particular, the submission, all subsequent Commission finds that the proposed amendments, all written statements rule change is consistent with Section with respect to the proposed rule 6(b)(5) of the Act,5 which requires, change that are filed with the among other things, that the rules of the Commission, and all written Exchange are designed to prevent communications relating to the fraudulent and manipulative acts and proposed rule change between the practices, to promote just and equitable Commission and any person, other than principles of trade, to foster cooperation those that may be withheld from the and coordination with persons engaged public in accordance with the in regulating, clearing, settling, provisions of 5 U.S.C. 552, will be processing information with respect to, available for inspection and copying in and facilitating transactions in the Commission’s Public Reference securities, to remove impediments to Room. Copies of such filing also will be and perfect the mechanism of a free and available for inspection and copying at open market and a national market the principal office of the Amex. All system, and, in general, to protect comments received will be posted investors and the public interest. without change; the Commission does 12 17 CFR 200.30–3(a)(12). not edit personal identifying 1 15 U.S.C. 78s(b)(1). information from submissions. You 2 17 CFR 240.19b–4. should submit only information that 3 Securities Exchange Act Release No. 54284 you wish to make available publicly. All (August 8, 2006), 71 FR 46954. submissions should refer to File 4 In approving this proposed rule change, the Number SR–Amex–2006–79 and should Commission notes that it has considered the proposed rule’s impact on efficiency, competition, be submitted on or before October 19, and capital formation. See 15 U.S.C. 78c(f). 2006. 5 15 U.S.C. 78f(b)(5). PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 E:\FR\FM\28SEN1.SGM 28SEN1 Federal Register / Vol. 71, No. 188 / Thursday, September 28, 2006 / Notices Nasdaq proposes to eliminate the foreign associate registration category under Nasdaq Rule 1100 and add an exemption to Nasdaq Rule 1060 for persons formerly covered by this registration category. Pursuant to Nasdaq’s definition of a foreign associate, these associated persons would not be conducting any securities activities on the Nasdaq market. The Commission notes that NASD Rule 1100 requires foreign associates of NASD members to register with NASD. The Commission believes that, because many Nasdaq members are also members of NASD, requiring Nasdaq members to register its foreign associates with both self-regulatory organizations is duplicative.6 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–NASDAQ– 2006–016) be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–15897 Filed 9–27–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54504; File No. SR–NYSE– 2006–76] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change Relating To Exchange Rule 104.10 (‘‘Dealings by Specialists’’) sroberts on PROD1PC70 with NOTICES * * * * * * * * Supplementary Material * * * * * .20 (a)(i) With respect to orders he or she is representing on the Floor, a Floor broker may place within the Display Book system broker agency interest files at multiple price points on both sides of the market at or outside the Exchange best bid and offer with respect to each security trading in the location(s) comprising the Crowd such Floor broker is a part of with respect to orders he or she is representing on the Floor, except that the agency interest files shall not include any customer interest that restricts the specialist’s ability to be on parity pursuant to Exchange Rules 104.10[(6)(i)(C)] (5)(i)(a)(I)(d) and 108(a). * * * * * * * * * * Supplementary Material: 6 The Commission notes that Nasdaq stated in its proposal that it has no reason to expect that the small number of non-NASD members that become Nasdaq members would have associated persons categorized as foreign associates. 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Jkt 208001 Rule 70. Rule 104 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 September 22, 2006 the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 20:16 Sep 27, 2006 Bids and Offers Dealings by Specialists September 26, 2006. VerDate Aug<31>2005 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change is an amendment to the specialist stabilization requirements set forth in NYSE Rule 104.10 (‘‘Dealings by Specialists’’). The Exchange seeks to implement certain changes as a pilot. The text of the proposed rule change is below. Proposed new language is in italics; proposed deletions are in [brackets]. Functions of Specialists .10 Regular specialists.—Any member who expects to act regularly as specialist in any listed stock and to solicit orders therein must be registered as a regular specialist. * * * * * (5)(i) Transactions on the Exchange by a specialist for [his] the specialist’s [own] account [of a member acting as specialist] are to be effected in a reasonable and orderly manner in relation to the condition of the general market, the market in the particular stock and the adequacy of the specialist’s position to the immediate and reasonably anticipated needs of the round-lot and the odd-lot market. (a) The following types of transactions [to establish or increase a position are not to be effected except] are permitted when they are reasonably necessary to render the specialist’s position adequate to such markets’ needs: PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 57011 (I) Neutral Transactions (a) Definition—A neutral transaction is a purchase or sale by which a specialist liquidates or decreases a position. (b) Neutral Transactions may be made without restriction as to price. (c) Re-Entry Obligation Following Neutral Transactions—The specialist’s obligation to maintain a fair and orderly market may require re-entry on the opposite side of the market trend after effecting one or more Neutral Transactions. Such re-entry transactions should be in accordance with the immediate and anticipated needs of the market. (d) Neutral Transactions must yield parity to, and may not claim precedence based on size over, a customer order in the Crowd upon the request of the member representing such order, where such request has been documented as a term of the order, to the extent of the volume of such order that has been included in the quote prior to the transaction. (e) The requirements contained in (5)(i)(a)(I)(d) above shall not apply to automatic executions involving the specialist dealer account. (II) Non-Conditional Transactions (a) Definition—A non-conditional transaction is a specialist’s bid or purchase and offer or sale, that establishes or increases a position, other than a transaction that reaches across the market to trade with the Exchange bid or offer. (b) Non-Conditional Transactions may be made without restriction as to price in order to: (i) Match another market’s better bid or offer price; (ii) Bring the price of a security into parity with an underlying or related security or asset; (iii) Add size to an independently established bid or offer on the Exchange; (iv) Purchase at the published bid price on the Exchange; (v) Sell at the published offer price on the Exchange; (vi) Purchase or sell at a price between the Exchange published bid and published offer; (vii) Purchase below the published bid or sell above the published offer on the Exchange; (c) Re-entry Obligation Following Non-Conditional Transactions—The specialist’s obligation to maintain a fair and orderly market may require re-entry on the opposite side of the market trend after effecting one or more NonConditional Transactions. Such re-entry transactions should be commensurate with the size of the Non-Conditional E:\FR\FM\28SEN1.SGM 28SEN1

Agencies

[Federal Register Volume 71, Number 188 (Thursday, September 28, 2006)]
[Notices]
[Pages 57010-57011]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-15897]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54478; File No. SR-NASDAQ-2006-016]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 
Granting Approval of Proposed Rule Change To Eliminate Registration of 
Foreign Associates Under Nasdaq Membership Rules

September 21, 2006.
    On July 21, 2006, The NASDAQ Stock Market LLC (``Nasdaq'') 
submitted to the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
eliminate the requirement for foreign associates to register with 
Nasdaq. The proposed rule change was published for comment in the 
Federal Register on August 15, 2006.\3\ The Commission received no 
comments on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 54284 (August 8, 2006), 
71 FR 46954.46954.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange.\4\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\5\ which requires, among 
other things, that the rules of the Exchange are 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.

[[Page 57011]]

Nasdaq proposes to eliminate the foreign associate registration 
category under Nasdaq Rule 1100 and add an exemption to Nasdaq Rule 
1060 for persons formerly covered by this registration category. 
Pursuant to Nasdaq's definition of a foreign associate, these 
associated persons would not be conducting any securities activities on 
the Nasdaq market. The Commission notes that NASD Rule 1100 requires 
foreign associates of NASD members to register with NASD. The 
Commission believes that, because many Nasdaq members are also members 
of NASD, requiring Nasdaq members to register its foreign associates 
with both self-regulatory organizations is duplicative.\6\
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ The Commission notes that Nasdaq stated in its proposal that 
it has no reason to expect that the small number of non-NASD members 
that become Nasdaq members would have associated persons categorized 
as foreign associates.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NASDAQ-2006-016) be, and 
hereby is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary. 2
 [FR Doc. E6-15897 Filed 9-27-06; 8:45 am]
BILLING CODE 8010-01-P