Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program That Increases Position and Exercise Limits for Certain Equity Options, 6634-6635 [07-608]
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6634
Federal Register / Vol. 72, No. 28 / Monday, February 12, 2007 / Notices
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:
sroberts on PROD1PC70 with NOTICES
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–ISE–2006–78 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55225; File No. SR–NASD–
2007–007]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend a Pilot
Program That Increases Position and
Exercise Limits for Certain Equity
Options
February 1, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on January
to Nancy M. Morris, Secretary,
25, 2007, the National Association of
Securities and Exchange Commission,
Securities Dealers, Inc. (‘‘NASD’’) filed
Station Place, 100 F Street, NE.,
with the Securities and Exchange
Washington, DC 20549–1090.
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–ISE–2006–78. This file
Items I, II, and III below, which Items
number should be included on the
have been substantially prepared by
subject line if e-mail is used. To help the NASD. NASD has filed the proposal as
Commission process and review your
a ‘‘non-controversial’’ rule change
comments more efficiently, please use
pursuant to Section 19(b)(3)(A) of the
only one method. The Commission will Act 3 and Rule 19b–4(f)(6) thereunder,4
post all comments on the Commission’s which renders it effective upon filing
Internet Web site (https://www.sec.gov/
with the Commission. The Commission
rules/sro.shtml). Copies of the
is publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
proposed rule change between the
NASD proposes to amend Rule 2860
Commission and any person, other than to extend a pilot program increasing
those that may be withheld from the
certain options position and exercise
public in accordance with the
limits. The text of the proposed rule
provisions of 5 U.S.C. 552, will be
change is available at NASD, the
available for inspection and copying in
Commission’s Public Reference Room,
the Commission’s Public Reference
and https://www.nasd.com.
Room. Copies of such filing also will be
II. Self-Regulatory Organization’s
available for inspection and copying at
the principal office of the Exchange. All Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
comments received will be posted
Change
without change; the Commission does
not edit personal identifying
In its filing with the Commission,
information from submissions. You
NASD included statements concerning
should submit only information that
the purpose of and basis for the
you wish to make available publicly. All
proposed rule change and discussed any
submissions should refer to File
comments it received on the proposed
Number SR–ISE–2006–78 and should be
rule change. The text of these statements
submitted on or before March 5, 2007.
may be examined at the places specified
For the Commission, by the Division of
in Item IV below. NASD has prepared
Market Regulation, pursuant to delegated
summaries, set forth in Sections A, B,
6
authority.
and C below, of the most significant
Florence E. Harmon,
aspects of such statements.
Deputy Secretary.
[FR Doc. E7–2253 Filed 2–9–07; 8:45 am]
1 15
BILLING CODE 8010–01–P
2 17
6 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
19:52 Feb 09, 2007
Jkt 211001
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).
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Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASD proposes to amend Rule 2860
to extend a pilot program until
September 1, 2007 (unless extended)
increasing position and exercise limits
for both standardized and conventional
options (‘‘Pilot Program’’).5 Unless
extended, the Pilot Program will expire
on March 1, 2007.6 NASD believes that
the Pilot Program should be extended so
that it may continue without
interruption for the same reasons that
are discussed in the Pilot Program
Notice.
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 must 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. The proposed rule
change is being made so that the Pilot
Program, which achieves these goals as
discussed in the Pilot Program Notice,
may continue without interruption.
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
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
5 See Securities Exchange Act Release No. 51520
(April 11, 2005), 70 FR 19977 (April 15, 2005) (SR–
NASD–2005–040) (‘‘Pilot Program Notice’’).
6 See Securities Exchange Act Release No. 54334
(August 18, 2006), 71 FR 50961 (August 28, 2006)
(SR–NASD–2006–025).
7 15 U.S.C. 78o–3(b)(6).
E:\FR\FM\12FEN1.SGM
12FEN1
Federal Register / Vol. 72, No. 28 / Monday, February 12, 2007 / Notices
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the Act.
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 No.
SR–NASD–2007–007 and should be
submitted on or before March 5, 2007.
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 07–608 Filed 2–9–07; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–NASD–2007–007 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–NASD–2007–007. This file number
should be included on the subject line
if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing will also be
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). 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 prefiling requirement.
sroberts on PROD1PC70 with NOTICES
9 17
VerDate Aug<31>2005
19:52 Feb 09, 2007
Jkt 211001
BILLING CODE 8010–01–P
[Release No. 34–55245; File No. SR–NASD–
2007–009]
Self-Regulatory Organizations:
National Association of Securities
Dealers, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change Relating to
Extension of NASD’s Short Sale Rule
Contained in Rule 5100 and Short Sale
Standard Contained in IM–5100
February 5, 2007.
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 January
26, 2007, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by NASD. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons. For the
reasons discussed below, the
Commission is granting accelerated
approval of the proposed rule change.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to extend
retroactively to December 16, 2006, and
prospectively through December 15,
2007, the pilot effectiveness of Rule
5100 (Short Sale Rule). NASD is also
seeking to extend the pilot effectiveness
of the penny ($0.01) legal short sale
standard contained in Interpretive
Material (IM) 5100. Without such
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
6635
extension, these pilots would have
expired on December 15, 2006. NASD
does not propose any substantive
changes to the pilots; the only changes
are making the pilots effective on a
retroactive basis to December 16, 2006
and extending the pilots’ expiration
dates to December 15, 2007.
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
brackets.3
*
*
*
*
*
5100. Short Sale Rule
(a) through (k) No Change.
(l) This section shall be in effect until
December 15, 200[6]7.
*
*
*
*
*
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
Proposal to Extend Penny Short Sale
Rule. Section 10(a) of the Act gives the
Commission plenary authority to
regulate short sales 4 of securities
registered on a national securities
exchange, as needed to protect
investors. Rule 10a–1(a)(1) provides
that, subject to certain exceptions, a
listed security may be sold short (A) at
a price above the price at which the
immediately preceding sale was effected
(plus tick), or (B) at the last sale price
if it is higher than the last different price
(zero-plus tick).5
On June 29 1994, the Commission
granted temporary approval to NASD’s
short sale rule, Rule 5100 (formerly Rule
3 There are no proposed changes to the text of
IM–5100.
4 A short sale is a sale of a security that the seller
does not own or any sale that is consummated by
the delivery of a security borrowed by, or for the
account of, the seller. See Rule 200(a) of Regulation
SHO under the Act.
5 See 17 CFR 240.10a–1(a)(1).
E:\FR\FM\12FEN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 28 (Monday, February 12, 2007)]
[Notices]
[Pages 6634-6635]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-608]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55225; File No. SR-NASD-2007-007]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend a Pilot Program That Increases Position and
Exercise Limits for Certain Equity Options
February 1, 2007.
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 January 25, 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, II,
and III below, which Items have been substantially prepared by NASD.
NASD has filed the proposal as a ``non-controversial'' rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders it effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD proposes to amend Rule 2860 to extend a pilot program
increasing certain options position and exercise limits. The text of
the proposed rule change is available at NASD, the Commission's Public
Reference Room, and https://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
NASD proposes to amend Rule 2860 to extend a pilot program until
September 1, 2007 (unless extended) increasing position and exercise
limits for both standardized and conventional options (``Pilot
Program'').\5\ Unless extended, the Pilot Program will expire on March
1, 2007.\6\ NASD believes that the Pilot Program should be extended so
that it may continue without interruption for the same reasons that are
discussed in the Pilot Program Notice.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51520 (April 11,
2005), 70 FR 19977 (April 15, 2005) (SR-NASD-2005-040) (``Pilot
Program Notice'').
\6\ See Securities Exchange Act Release No. 54334 (August 18,
2006), 71 FR 50961 (August 28, 2006) (SR-NASD-2006-025).
---------------------------------------------------------------------------
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 must 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. The proposed rule change is being made so that the
Pilot Program, which achieves these goals as discussed in the Pilot
Program Notice, may continue without interruption.
---------------------------------------------------------------------------
\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
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has
[[Page 6635]]
become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and
Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). 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.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-NASD-2007-007 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-NASD-2007-007. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing will also be available for inspection and copying at the
principal office of 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 No. SR-
NASD-2007-007 and should be submitted on or before March 5, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 07-608 Filed 2-9-07; 8:45 am]
BILLING CODE 8010-01-P
