Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Permit Orders to Peg to the Midpoint of the Best Bid and Best Offer, 77839-77841 [E6-22081]
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Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54957; File No. SR–FICC–
2006–07]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving a Proposed Rule Change
Relating To Providing Certain Reports
to Its Members
December 18, 2006.
On April 21, 2006, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’).1 Notice
of the proposal was published in the
Federal Register on October 4, 2006.2
No comment letters were received. For
the reasons discussed below, the
Commission is approving the proposed
rule change.
jlentini on PROD1PC65 with NOTICES
I. Description
The proposed rule change clarifies the
frequency of certain reports that FICC
will provide to its members. FICC
conforms the rules of both its divisions,
the Government Securities Division and
the Mortgage Backed Securities Division
(‘‘MBSD’’), regarding FICC’s providing
financial reports to members to the
equivalent rule of FICC’s affiliated
clearing agency, The Depository Trust
Company (‘‘DTC’’).3 FICC’s revised rules
will state that quarterly unaudited
financial statements will only be
provided to members/participants for
the first three quarters of the calendar
year.4 In addition, in conformity to
DTC’s rules, FICC is deleting the time
frames from its rules for providing the
financial reports to its members/
participants. Nevertheless, FICC will
attempt to continue to make its annual
audited financial statements available to
its members within 60 days of the fiscal
year end and will attempt to continue to
make its quarterly unaudited financial
statements available within 30 days of
the quarter end.
FICC is also changing the time frame
in Article V, Rule 5, Section 3 of
MBSD’s Clearing Rulebook and EPN
Rulebook regarding providing its
participants with the independent
auditors’ annual study and evaluation of
MBSD’s internal accounting controls.
While FICC will delete these rule
1 15
U.S.C. 78s(b)(1).
Exchange Act Release No. 54570 (Oct.
4, 2006), 71 FR 60591.
3 DTC Rule 15.
4 An annual audited financial statement is
provided to members after the last calendar quarter
of each year.
2 Securities
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provisions in their entirety, FICC will
make this study and evaluation
available to its members within a
reasonable time after it receives it from
its independent accountants, which is
DTC’s practice.
II. Discussion
Section 17A(b)(3)(F) of the Act 5
requires that the rules of a clearing
agency to remove impediments to and
perfect the mechanism of a national
system for the prompt and accurate
clearance and settlement of securities
transactions. The Commission finds that
the proposed rule change is consistent
with this obligation because the
proposed rule change conforms FICC’s
rules regarding providing unaudited
quarterly financial statements and the
independent auditor’s annual study of
internal controls with those of DTC and
as such should promote the national
clearance and settlement system.
III. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
FICC–2006–07) be, and hereby is,
approved.7
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22091 Filed 12–26–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54968; File No. SR–
NASDAQ–2006–058]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Permit
Orders to Peg to the Midpoint of the
Best Bid and Best Offer
December 19, 2006.
Pursuant to the provisions of Section
19(b)(1) under the Securities Exchange
5 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
7 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
8 17 CFR 200.30–3(a)(12).
6 15
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77839
Act of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 The NASDAQ Stock
Market LLC (‘‘Nasdaq’’) is filing with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by Nasdaq.
The Exchange filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 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 the Terms of the Substance
of the Proposed Rule Change
Nasdaq is proposing to enable orders
to peg to the midpoint between the best
bid and best offer (‘‘Midpoint Peg’’). The
text of the proposed rule change is
available on the Exchange’s Web site
(https://www.nasdaq.complinet.com), at
the Exchange’s Office of the Secretary,
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 proposes to modify the rule
language pertaining to pegged orders
(‘‘Pegged Orders’’) to enable orders to
peg to the midpoint of the best bid and
best offer. Nasdaq currently offers
pegged functionality, adjusting the price
of the order based upon changes in the
best bid and offer in the national market
system (‘‘National Market System’’).
A market participant entering a
Pegged Order currently can specify that
its price will equal the inside quote on
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. 248 / Wednesday, December 27, 2006 / Notices
the same side of the market (‘‘Primary
Peg’’) or the opposite side of the market
(‘‘Market Peg’’). The Primary Peg and
Market Peg Orders may establish their
pricing relative to the appropriate bids
or offers by the selection of one or more
offset amounts that will adjust the price
of the order by the offset amount
selected. Additionally, a new timestamp
is created for the order each time it is
automatically adjusted.
The proposed rule change is in
accordance with Rule 612 of Regulation
NMS,5 which governs sub–penny
quoting of National Market System
stocks 6 (the ‘‘Sub–Penny Rule’’). The
proposed rule change would not result
in the display, rank, or acceptance of a
bid or offer, an order, quotation, or
indication of interest in any NMS stock
that is priced in an increment smaller
than $0.01 per share, unless the price of
the bid or offer, order, indication of
interest is priced less than $1.00 per
share.7
The following examples illustrate
how the proposed rule change would
operate (note that the price of the order
updates in response to changes in the
best bid and best offer, excluding the
order’s own impact on the best bid or
best offer):
Example 1
The best bid is $20.00 and the best
offer is $20.06.
The Midpoint Peg Order to buy will
be priced at $20.03.
The best offer updates to $20.08.
The price of the Midpoint Peg Order
will update to $20.04.
Example 2
jlentini on PROD1PC65 with NOTICES
The best bid is $20.00 and the best
offer is $20.03.
The price of the Midpoint Peg Order
to buy will be $20.01. The true midpoint
would be $20.015, but to avoid pricing
the order in a sub–penny increment the
bid is rounded down. However, if the
order instead was a sell order the offer
would be rounded up.
The best offer updates to $20.08.
The price of the Midpoint Peg Order
will be $20.04.
5 17 CFR 242.600 et seq. See also Securities
Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496 (June 29, 2005) (‘‘Regulation NMS
Adopting Release’’).
6 An NMS stock is any non-option security for
which transaction reports are collected, processed,
and made available pursuant to an effective
transaction reporting plan. See 17 CFR
242.600(b)(46) and (47).
7 If the bid or offer, order, or indication of interest
is priced less than $1.00 per share, the minimum
allowable increment is $0.0001 per share. See 17
CFR 242.612(b).
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20:43 Dec 26, 2006
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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.
delay, which would make the rule
change operative immediately. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposed
rule change provides a potentially
useful enhancement for investors to
utilize in executing their trades.15
At any time within 60 days of the
filing of a rule change pursuant to
Section 19(b)(3)(A) of the Act, the
Commission may summarily abrogate
the 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.
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.
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:
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)
of the Act 10 and Rule 19b–4(f)(6)
thereunder 11 in that it: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) by its terms, does
not become operative for 30 days after
the date of the filing.12
A proposed rule changed filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.13 However, Rule 19b–
4(f)(6)(iii) 14 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.
Nasdaq has requested that the
Commission waive the 30-day operative
8 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 As required by Rule 19b–4(f)(6)(iii), on
November 28, 2006, Nasdaq provided the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change.
13 17 CFR 240.19b–4(f)(6)(iii).
14 Id.
9 15
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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–2006–058 in 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–2006–058. 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
15 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\27DEN1.SGM
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Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices
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 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–2006–058 and
should be submitted on or before
January 17, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22081 Filed 12–26–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54965; File No. SR–
NASDAQ–2006–052]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Waive
Distributor Fee for Specific Data
Element
December 19, 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 December
7, 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
substantially prepared by Nasdaq.
Nasdaq has filed the proposal pursuant
to Section 19(b)(3)(A) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 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.
jlentini on PROD1PC65 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to allow for the
unlimited, free distribution of Nasdaq’s
aggregate best bid and offer quotation
16 17
CFR 200.30–3(a)(12).
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).
1 15
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20:43 Dec 26, 2006
Jkt 211001
for Nasdaq’s quoting in stocks listed on
the New York Stock Exchange LLC
(‘‘NYSE’’) and the American Stock
Exchange LLC (‘‘Amex’’). Below is the
text of the proposed rule change.
Proposed new language is italicized.
7023. Nasdaq TotalView
(a)–(b) No change.
(c) OpenView
(1) The OpenView entitlement
package consists of all individual
Nasdaq Market Center participant
quoting quotes and orders in nonNasdaq exchange-listed securities in the
system. There shall be a charge of $6 per
month per controlled device for
OpenView.
(2) The OpenView Top-of-File
(‘‘OpenView TOF’’) entitlement package
consists of the Nasdaq aggregate best
bid and offer quotation for non-Nasdaq
exchange-listed securities in the system.
There shall be no fee for the distribution
of the OpenView TOF.
(d) 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,
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
To encourage more competition in the
trading and quoting of NYSE- and
Amex-listed stocks, as well as to
encourage subscribership to Nasdaq’s
full-depth products, Nasdaq proposes
new Nasdaq Rule 7023(c)(2) to institute
a fee waiver for firms wishing to
distribute the OpenView Top-of-File,
which consists of Nasdaq’s aggregate
real-time best bid and offer quote for
NYSE- and Amex-listed stocks. The
aggregate best bid and offer is a single
data element within Nasdaq OpenView.
That element can be extracted from
OpenView and, under this proposal, can
be separately distributed free of charge.
Nasdaq believes that this will promote
wider distribution of data and benefit
investors wishing to use that data in
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77841
making investment decisions. Nasdaq
has filed this proposal as a change to the
rule manual of The NASDAQ Stock
Market LLC. As such, it will be
operative when Nasdaq begins operating
as an exchange with respect to the
trading of NYSE- and Amex-listed
securities.5
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,6 in
general, and with Sections 6(b)(5) of the
Act,7 in particular, in that waiving the
distribution fee for Nasdaq’s aggregate
best bid and offer in NYSE and Amex
securities will encourage broader
dissemination of that data and thereby
increase transparency in those
securities.
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
The foregoing proposed rule change is
subject to Section 19(b)(3)(A)(iii) of the
Act 8 and Rule 19b–4(f)(6) thereunder 9
because the proposal: (i) does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative prior to 30 days after the date
of filing or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest; provided that Nasdaq
has given the Commission notice of its
intent to file the proposed rule change,
along with a brief description and text
of the proposed rule change, at least five
business days prior to the date of filing
of the proposed rule change, or such
5 Telephone conversation among John Roeser,
Assistant Director, Division of Market Regulation
(‘‘Division’’), Commission, David Liu, Special
Counsel, Division, Commission, and Jeffrey Davis,
Vice President-Deputy General Counsel, Nasdaq, on
December 18, 2006.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
E:\FR\FM\27DEN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 248 (Wednesday, December 27, 2006)]
[Notices]
[Pages 77839-77841]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22081]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54968; File No. SR-NASDAQ-2006-058]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Permit Orders to Peg to the Midpoint of the Best Bid and Best Offer
December 19, 2006.
Pursuant to the provisions of Section 19(b)(1) under the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ The
NASDAQ Stock Market LLC (``Nasdaq'') is filing with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been substantially
prepared by Nasdaq. The Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ 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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Nasdaq is proposing to enable orders to peg to the midpoint between
the best bid and best offer (``Midpoint Peg''). The text of the
proposed rule change is available on the Exchange's Web site (https://www.nasdaq.complinet.com), at the Exchange's Office of the Secretary,
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 proposes to modify the rule language pertaining to pegged
orders (``Pegged Orders'') to enable orders to peg to the midpoint of
the best bid and best offer. Nasdaq currently offers pegged
functionality, adjusting the price of the order based upon changes in
the best bid and offer in the national market system (``National Market
System'').
A market participant entering a Pegged Order currently can specify
that its price will equal the inside quote on
[[Page 77840]]
the same side of the market (``Primary Peg'') or the opposite side of
the market (``Market Peg''). The Primary Peg and Market Peg Orders may
establish their pricing relative to the appropriate bids or offers by
the selection of one or more offset amounts that will adjust the price
of the order by the offset amount selected. Additionally, a new
timestamp is created for the order each time it is automatically
adjusted.
The proposed rule change is in accordance with Rule 612 of
Regulation NMS,\5\ which governs sub-penny quoting of National Market
System stocks \6\ (the ``Sub-Penny Rule''). The proposed rule change
would not result in the display, rank, or acceptance of a bid or offer,
an order, quotation, or indication of interest in any NMS stock that is
priced in an increment smaller than $0.01 per share, unless the price
of the bid or offer, order, indication of interest is priced less than
$1.00 per share.\7\
---------------------------------------------------------------------------
\5\ 17 CFR 242.600 et seq. See also Securities Exchange Act
Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005)
(``Regulation NMS Adopting Release'').
\6\ An NMS stock is any non-option security for which
transaction reports are collected, processed, and made available
pursuant to an effective transaction reporting plan. See 17 CFR
242.600(b)(46) and (47).
\7\ If the bid or offer, order, or indication of interest is
priced less than $1.00 per share, the minimum allowable increment is
$0.0001 per share. See 17 CFR 242.612(b).
---------------------------------------------------------------------------
The following examples illustrate how the proposed rule change
would operate (note that the price of the order updates in response to
changes in the best bid and best offer, excluding the order's own
impact on the best bid or best offer):
Example 1
The best bid is $20.00 and the best offer is $20.06.
The Midpoint Peg Order to buy will be priced at $20.03.
The best offer updates to $20.08.
The price of the Midpoint Peg Order will update to $20.04.
Example 2
The best bid is $20.00 and the best offer is $20.03.
The price of the Midpoint Peg Order to buy will be $20.01. The true
midpoint would be $20.015, but to avoid pricing the order in a sub-
penny increment the bid is rounded down. However, if the order instead
was a sell order the offer would be rounded up.
The best offer updates to $20.08.
The price of the Midpoint Peg Order will be $20.04.
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder \11\ in
that it: (i) Does not significantly affect the protection of investors
or the public interest; (ii) does not impose any significant burden on
competition; and (iii) by its terms, does not become operative for 30
days after the date of the filing.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ As required by Rule 19b-4(f)(6)(iii), on November 28, 2006,
Nasdaq provided the Commission written notice of its intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change.
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A proposed rule changed filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\13\
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. Nasdaq has requested that the
Commission waive the 30-day operative delay, which would make the rule
change operative immediately. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest because the proposed rule change provides a
potentially useful enhancement for investors to utilize in executing
their trades.\15\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ Id.
\15\ For purposes only of waiving the 30-day 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 a rule change pursuant
to Section 19(b)(3)(A) of the Act, the Commission may summarily
abrogate the 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.
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-2006-058 in 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-2006-058.
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
[[Page 77841]]
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 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-2006-058 and should
be submitted on or before January 17, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-22081 Filed 12-26-06; 8:45 am]
BILLING CODE 8011-01-P
