Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Periods for NASD Rules Governing Multiple MPIDs on the Trade Reporting Facilities and on the Alternative Display Facility, 5479-5481 [E7-1859]
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Federal Register / Vol. 72, No. 24 / Tuesday, February 6, 2007 / Notices
Cancellation Fee by the cancellation
activity of each correspondent firm (and
the executing clearing firm’s own
cancellation activity when it self clears),
rather than by the aggregate cancellation
activity of the executing clearing firm.
Correspondent firms using multiple
executing clearing firms would be
evaluated separately, per executing
clearing firm. The Exchange will be able
to provide executing clearing members
with information regarding the
cancellation activity of each of its
correspondent firms so that the
executing clearing member can pass
through any cancellation fees.
In addition, the Exchange proposes to
increase the ORS Cancellation Fee from
$1.00 to $1.25 per cancelled ORS order.
The Exchange proposes that the
following ORS cancellation activity
would be exempt from the fee: (i)
Cancelled ORS orders that improve the
Exchange’s prevailing bid-offer (‘‘BBO’’)
market when received; and (ii) fill and
cancellation activity occurring within
the first one minute of trading following
the opening of each option class. The
Exchange believes the foregoing cancel
activity is not an inappropriate use of
systems capacity and therefore should
not be subject to the fee.
The Exchange believes that the
proposed ORS Cancellation Fee is
similar to the cancellation fee of another
exchange.25
i. DPM Facilities Fee
The Exchange proposes to eliminate
the DPM facilities fee, which the
Exchange charges DPMs each month for
use of Exchange floor trading stations.
The elimination of this fee is intended
to provide fee relief to DPMs in light of
a recently adopted fee that DPMs may
incur in fiscal year 2007.26
j. Miscellaneous, Non-substantive
Changes
The Exchange proposes various nonsubstantive clean-up changes to its Fees
Schedule. The Section of the Fees
Schedule entitled ‘‘Index Customer
Boxes’’ under ‘‘Member Transaction Fee
Policies and Rebate Programs’’ is
proposed to be deleted, as that program
is superseded by the Customer Large
Trade Discount Program.
sroberts on PROD1PC70 with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
25 See Securities Exchange Act Release No. 53862
(May 24, 2006), 71 FR 31244 (June 1, 200) (SR–ISE–
2006–23).
26 See Securities Exchange Act Release No. 54804
(November 21, 2006), 71 FR 69150 (November 29,
2006) (SR–CBOE–2006–98) (Hybrid Electronic
Quoting Fee).
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16:03 Feb 05, 2007
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Act,27 in general, and furthers the
objectives of Section 6(b)(4) 28 of the
Act, in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among CBOE members and other
persons using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of purposes of the 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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 29 and
subparagraph (f)(2) of Rule 19b–4 30
thereunder. 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.31
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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2006–111 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
27 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
29 15 U.S.C. 78s(b)(3)(A).
30 17 CFR 240.19b–4(f)(2).
31 Id.
28 15
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5479
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2006–111. 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 the CBOE. 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–CBOE–2006–111 and
should be submitted on or before
February 27, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.32
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–1860 Filed 2–5–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55206; File No. SR–NASD–
2007–008]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Extending the Pilot
Periods for NASD Rules Governing
Multiple MPIDs on the Trade Reporting
Facilities and on the Alternative
Display Facility
January 31, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
32 17
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CFR 200.30–3(a)(12).
06FEN1
5480
Federal Register / Vol. 72, No. 24 / Tuesday, February 6, 2007 / Notices
(‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
26, 2007, 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 and II below, which Items have
been substantially prepared by NASD.
NASD 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD proposes to amend NASD
Rules 4613A(b) and 5140 to extend the
pilot programs for the use of multiple
Market Participant Symbols (‘‘MPIDs’’)
for Registered Reporting Alternative
Display Facility (‘‘ADF’’) electronic
communications networks (‘‘ECNs’’)
and Trade Reporting Facility
Participants. The text of the proposed
rule change is available at NASD, the
Commission’s Public Reference Room,
and www.nasd.com.
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
sroberts on PROD1PC70 with NOTICES
1. Purpose
Rule 4613A(b) and IM–4613A–1
Rule 4613A(b) (Character of
Quotations) provides that a Registered
Reporting ADF ECN may request
additional MPIDs for displaying quotes
and orders and reporting trades through
the ADF trade reporting facility, the
Trade Reporting and Comparison
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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Service, for any ADF-Eligible Security.
A Registered Reporting ADF ECN that is
permitted the use of additional MPIDs
for displaying quotes and orders is
subject to the same rules applicable to
the member’s first quotation (i.e., an
ECN that displays one or more
additional quotes/orders is required to
comply with all rules applicable to
ECNs in their display of quotes/orders).
A Registered Reporting ADF ECN also is
prohibited from using an additional
MPID to accomplish indirectly what it
is prohibited from doing directly
through its Primary MPID. In addition,
NASD staff retains full discretion to
determine whether a bona fide
regulatory and/or business need exists
for being granted an additional MPID
privilege and to limit or withdraw the
additional MPID display privilege at any
time. The procedures for requesting, and
the restrictions surrounding the use of,
multiple MPIDs are set forth in IM–
4613A–1 (Procedures for Allocation of
Multiple MPIDs).
The Commission approved Rule
4613A(b) and IM–4613A–1 on a pilot
basis on August 11, 2006.5 By its terms,
the pilot period expires on January 26,
2007, and NASD has determined to seek
an extension of the pilot period until
January 25, 2008. NASD believes that
such an extension will provide
additional time to analyze the use of
multiple MPIDs on the ADF. NASD is
not proposing any other changes to the
pilot as this time.6
Rule 5140 and IM–5140
Rule 5140 (Multiple MPIDs for Trade
Reporting Facility Participants) provides
that any Trade Reporting Facility
Participant that wishes to use more than
one MPID for purposes of reporting
trades to a Trade Reporting Facility
must submit a written request to, and
obtain approval from, NASD Operations
for such additional MPIDs. In addition,
IM–5140 (Use of Multiple MPIDs) states
that NASD considers the issuance of,
and trade reporting with, multiple
MPIDs to be a privilege and not a right.
A Trade Reporting Facility Participant
must identify the purpose(s) and
system(s) for which the multiple MPIDs
will be used. If NASD determines that
the use of multiple MPIDs is detrimental
5 See Securities Exchange Act Release No. 54307
(August 11, 2006), 71 FR 47551 (August 17, 2006).
6 The expiration of the pilot period coincided
with the expiration of the current ADF pilot period.
See Securities Exchange Act Release No. 53699
(April 21, 2006), 71 FR 25271 (April 28, 2006). In
a separate rule filing, NASD proposed to make the
ADF rules permanent. See Securities Exchange Act
Release No. 55181 (January 26, 2007) (SR–NASD–
2007–005). At this time, NASD is seeking to extend
only Rule 4613A(b) and IM–4613A–1 for another
year.
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
to the marketplace, or that a Trade
Reporting Facility Participant is using
one or more additional MPIDs
improperly or for other than the
purpose(s) identified by the Participant,
NASD staff retains full discretion to
limit or withdraw its grant of the
additional MPID(s) to such Trade
Reporting Facility Participant for
purposes of reporting trades to a Trade
Reporting Facility. NASD believes that
Rule 5140 and IM–5140 are necessary to
consolidate the process of issuing, and
tracking the use of, multiple MPIDs
used to report trades to NASD Trade
Reporting Facilities.
The Commission approved Rule 5140
on a pilot basis on November 6, 2006.7
By its terms, the pilot period expires on
January 26, 2007, and NASD has
determined to seek an extension of the
pilot period until January 25, 2008.
NASD believes that such an extension
will provide additional time to analyze
the use of multiple MPIDs on the Trade
Reporting Facilities. NASD is not
proposing any other changes to the pilot
as this time. NASD proposes to
implement the proposed rule change on
January 27, 2007.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,8 which
requires, among other things, that NASD
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 these requirements
because it would provide a process by
which ECNs (in the case of the ADF)
and Trade Reporting Facility
Participants (in the case of the Trade
Reporting Facilities) can request, and
NASD can properly allocate, the use of
additional MPIDs for displaying quotes
and orders through the ADF or reporting
trades to a Trade Reporting Facility.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change would result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
7 See Securities Exchange Act Release No. 54715
(November 6, 2006), 71 FR 66354 (November 14,
2006); see also Securities Exchange Act Release No.
54715A (November 14, 2006), 71 FR 67183
(November 20, 2006) (correcting original approval
order).
8 15 U.S.C. 78o–3(b)(6).
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Federal Register / Vol. 72, No. 24 / Tuesday, February 6, 2007 / Notices
Electronic Comments
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 9 and Rule 19b–4(f)(6) thereunder 10
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.11
NASD has requested that the
Commission waive the 30-day operative
delay in this case. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver will allow
the benefits of the multiple MPID pilots
to continue uninterrupted. For this
reason, the Commission designates the
proposed rule change to be operative
upon filing with the Commission.12
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 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:
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 Rule 19b–4(f)(6) also requires the selfregulatory organization to give 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 shorter time as designated by the
Commission. NASD has satisfied the five-day prefiling requirement.
12 For the 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).
sroberts on PROD1PC70 with NOTICES
10 17
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16:03 Feb 05, 2007
Jkt 211001
• 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–2007–008 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.
5481
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55185; File No. SR–
NYSEArca–2007–10]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the
Establishment of a Pilot Program That
Increases Position and Exercise Limits
for Options on the iShares Russell
2000 Index Fund
January 29, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on January
Number SR–NASD–2007–008. This file
25, 2007, the NYSE Arca, Inc. (‘‘NYSE
number should be included on the
Arca’’ or ‘‘Exchange’’) filed with the
subject line if e-mail is used. To help the
Securities and Exchange Commission
Commission process and review your
(‘‘Commission’’) the proposed rule
comments more efficiently, please use
change as described in Items I and II
only one method. The Commission will below, which Items have been
post all comments on the Commission’s substantially prepared by NYSE Arca.
Internet Web site (https://www.sec.gov/
NYSE Arca has filed the proposal
rules/sro.shtml). Copies of the
pursuant to Section 19(b)(3)(A) of the
submission, all subsequent
Act 3 and Rule 19b–4(f)(6) thereunder,4
amendments, all written statements
which renders the proposal effective
with respect to the proposed rule
upon filing with the Commission. The
change that are filed with the
Commission is publishing this notice to
Commission, and all written
solicit comments on the proposed rule
communications relating to the
change from interested persons.
proposed rule change between the
I. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
NYSE Arca proposes to amend Rule
provisions of 5 U.S.C. 552, will be
6.8 to exempt options on the iShares
available for inspection and copying in
Russell 2000 Index Fund (‘‘IWM’’)
the Commission’s Public Reference
from the position and exercise limits
Room. Copies of the filing also will be
provided for under the Rule 6.8 Pilot
available for inspection and copying at
Program and to increase the standard
the principal office of NASD. All
position and exercise limits for IWM as
comments received will be posted
part of an approximately six-month
without change; the Commission does
pilot (‘‘Rule 6.8 IWM Pilot Program’’).5
not edit personal identifying
The text of the proposed rule change is
information from submissions. You
available at NYSE Arca, the
should submit only information that
Commission’s Public Reference Room,
you wish to make available publicly. All and www.nysearca.com.
submissions should refer to File
II. Self-Regulatory Organization’s
Number SR–NASD–2007–008 and
Statement of the Purpose of, and
should be submitted on or before
Statutory Basis for, the Proposed Rule
February 27, 2007.
Change
For the Commission, by the Division of
In its filing with the Commission,
Market Regulation, pursuant to delegated
NYSE Arca included statements
13
authority.
concerning the purpose of and basis for
Florence E. Harmon,
the proposed rule change and discussed
Deputy Secretary.
[FR Doc. E7–1859 Filed 2–5–07; 8:45 am]
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00068
Fmt 4703
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).
5 Due to the effective date of this filing, the
duration of the pilot will actually be slightly less
than six months so that the expiration date of the
pilot may coincide with similar pilot programs in
effect at other options exchanges.
2 17
BILLING CODE 8010–01–P
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]]>Agencies
[Federal Register Volume 72, Number 24 (Tuesday, February 6, 2007)]
[Notices]
[Pages 5479-5481]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-1859]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55206; File No. SR-NASD-2007-008]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Extending the Pilot Periods for NASD Rules Governing
Multiple MPIDs on the Trade Reporting Facilities and on the Alternative
Display Facility
January 31, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 5480]]
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 26, 2007, 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 and
II below, which Items have been substantially prepared by NASD. NASD
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.
---------------------------------------------------------------------------
\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 Substance
of the Proposed Rule Change
NASD proposes to amend NASD Rules 4613A(b) and 5140 to extend the
pilot programs for the use of multiple Market Participant Symbols
(``MPIDs'') for Registered Reporting Alternative Display Facility
(``ADF'') electronic communications networks (``ECNs'') and Trade
Reporting Facility Participants. The text of the proposed rule change
is available at NASD, the Commission's Public Reference Room, and
www.nasd.com.
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
Rule 4613A(b) and IM-4613A-1
Rule 4613A(b) (Character of Quotations) provides that a Registered
Reporting ADF ECN may request additional MPIDs for displaying quotes
and orders and reporting trades through the ADF trade reporting
facility, the Trade Reporting and Comparison Service, for any ADF-
Eligible Security. A Registered Reporting ADF ECN that is permitted the
use of additional MPIDs for displaying quotes and orders is subject to
the same rules applicable to the member's first quotation (i.e., an ECN
that displays one or more additional quotes/orders is required to
comply with all rules applicable to ECNs in their display of quotes/
orders). A Registered Reporting ADF ECN also is prohibited from using
an additional MPID to accomplish indirectly what it is prohibited from
doing directly through its Primary MPID. In addition, NASD staff
retains full discretion to determine whether a bona fide regulatory
and/or business need exists for being granted an additional MPID
privilege and to limit or withdraw the additional MPID display
privilege at any time. The procedures for requesting, and the
restrictions surrounding the use of, multiple MPIDs are set forth in
IM-4613A-1 (Procedures for Allocation of Multiple MPIDs).
The Commission approved Rule 4613A(b) and IM-4613A-1 on a pilot
basis on August 11, 2006.\5\ By its terms, the pilot period expires on
January 26, 2007, and NASD has determined to seek an extension of the
pilot period until January 25, 2008. NASD believes that such an
extension will provide additional time to analyze the use of multiple
MPIDs on the ADF. NASD is not proposing any other changes to the pilot
as this time.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54307 (August 11,
2006), 71 FR 47551 (August 17, 2006).
\6\ The expiration of the pilot period coincided with the
expiration of the current ADF pilot period. See Securities Exchange
Act Release No. 53699 (April 21, 2006), 71 FR 25271 (April 28,
2006). In a separate rule filing, NASD proposed to make the ADF
rules permanent. See Securities Exchange Act Release No. 55181
(January 26, 2007) (SR-NASD-2007-005). At this time, NASD is seeking
to extend only Rule 4613A(b) and IM-4613A-1 for another year.
---------------------------------------------------------------------------
Rule 5140 and IM-5140
Rule 5140 (Multiple MPIDs for Trade Reporting Facility
Participants) provides that any Trade Reporting Facility Participant
that wishes to use more than one MPID for purposes of reporting trades
to a Trade Reporting Facility must submit a written request to, and
obtain approval from, NASD Operations for such additional MPIDs. In
addition, IM-5140 (Use of Multiple MPIDs) states that NASD considers
the issuance of, and trade reporting with, multiple MPIDs to be a
privilege and not a right. A Trade Reporting Facility Participant must
identify the purpose(s) and system(s) for which the multiple MPIDs will
be used. If NASD determines that the use of multiple MPIDs is
detrimental to the marketplace, or that a Trade Reporting Facility
Participant is using one or more additional MPIDs improperly or for
other than the purpose(s) identified by the Participant, NASD staff
retains full discretion to limit or withdraw its grant of the
additional MPID(s) to such Trade Reporting Facility Participant for
purposes of reporting trades to a Trade Reporting Facility. NASD
believes that Rule 5140 and IM-5140 are necessary to consolidate the
process of issuing, and tracking the use of, multiple MPIDs used to
report trades to NASD Trade Reporting Facilities.
The Commission approved Rule 5140 on a pilot basis on November 6,
2006.\7\ By its terms, the pilot period expires on January 26, 2007,
and NASD has determined to seek an extension of the pilot period until
January 25, 2008. NASD believes that such an extension will provide
additional time to analyze the use of multiple MPIDs on the Trade
Reporting Facilities. NASD is not proposing any other changes to the
pilot as this time. NASD proposes to implement the proposed rule change
on January 27, 2007.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 54715 (November 6,
2006), 71 FR 66354 (November 14, 2006); see also Securities Exchange
Act Release No. 54715A (November 14, 2006), 71 FR 67183 (November
20, 2006) (correcting original approval order).
---------------------------------------------------------------------------
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\8\ which requires, among
other things, that NASD 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 these requirements because it would provide a process
by which ECNs (in the case of the ADF) and Trade Reporting Facility
Participants (in the case of the Trade Reporting Facilities) can
request, and NASD can properly allocate, the use of additional MPIDs
for displaying quotes and orders through the ADF or reporting trades to
a Trade Reporting Facility.
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\8\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASD does not believe that the proposed rule change would result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 5481]]
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 \9\ and Rule 19b-4(f)(6) thereunder \10\
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.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ Rule 19b-4(f)(6) also requires the self-regulatory
organization to give 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 shorter time as
designated by the Commission. NASD has satisfied the five-day pre-
filing requirement.
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NASD has requested that the Commission waive the 30-day operative
delay in this case. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver will allow the benefits of the
multiple MPID pilots to continue uninterrupted. For this reason, the
Commission designates the proposed rule change to be operative upon
filing with the Commission.\12\
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\12\ For the 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 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 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-NASD-2007-008 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-2007-008. 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 the 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-2007-008 and should be submitted on or before February 27, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-1859 Filed 2-5-07; 8:45 am]
BILLING CODE 8010-01-P
