Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Alternative Display Facility Quotation Update Fee, 10283-10285 [E7-3952]
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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices
sroberts on PROD1PC70 with NOTICES
securities exchange.14 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,15 which requires that
an exchange have rules designed, among
other things, to promote just and
equitable principles of trade, 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. The Commission
believes that this proposal should
benefit investors by increasing
competition among markets that trade
the Shares.
In addition, the Commission finds
that the proposal is consistent with
Section 12(f) of the Act,16 which permits
an exchange to trade, pursuant to UTP,
a security that is listed and registered on
another exchange.17 The Commission
notes that it previously approved the
listing and trading of the Shares on
Amex and NYSE Arca, Inc.18 The
Commission also finds that the proposal
is consistent with Rule 12f–5 under the
Act,19 which provides that an exchange
shall not extend UTP to a security
unless the exchange has in effect a rule
or rules providing for transactions in the
class or type of security to which the
exchange extends UTP. The Exchange
has represented that it meets this
requirement because it deems the
Shares to be equity securities, thus
rendering trading in the Shares subject
to the Exchange’s existing rules
governing the trading of equity
securities.
The Commission further believes that
the proposal is consistent with Section
11A(a)(1)(C)(iii) of the Act,20 which sets
forth Congress’ finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
14 In approving this 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).
15 15 U.S.C. 78f(b)(5).
16 15 U.S.C. 78l(f).
17 Section 12(a) of the Act, 15 U.S.C. 78l(a),
generally prohibits a broker-dealer from trading a
security on a national securities exchange unless
the security is registered on that exchange pursuant
to Section 12 of the Act. Section 12(f) of the Act
excludes from this restriction trading in any
security to which an exchange ‘‘extends UTP.’’
When an exchange extends UTP to a security, it
allows its members to trade the security as if it were
listed and registered on the exchange even though
it is not so listed and registered.
18 See supra note 3 and Securities Exchange Act
Release No. 51067 (January 21, 2005), 70 FR 3952
(January 27, 2005) (SR–PCX–2004–132).
19 17 CFR 240.12f–5.
20 15 U.S.C. 78k–1(a)(1)(C)(iii).
VerDate Aug<31>2005
18:25 Mar 06, 2007
Jkt 211001
with respect to quotations for and
transactions in securities. Quotations for
and last sale information regarding the
Shares is disseminated through the
Consolidated Tape System. The
Commission notes that there is a
considerable amount of gold price and
gold market information available 24
hours per day on public Web sites and
through professional and subscription
services, and the Exchange will link to
the Amex and Trust Web sites, which
provide trading information about the
Shares. Furthermore, Amex
disseminates the Indicative Trust Value
on a per-Share basis every 15 seconds
through the facilities of the CTA during
regular Amex trading hours of 9:30 a.m.
to 4:15 p.m. ET (except between 1:30
p.m. and 2 p.m., the time from the close
of regular trading of the COMEX gold
futures contract and the start of trading
of COMEX gold futures contracts on
NYMEX ACCESS). The Commission
also notes that the Trust’s Web site is
publicly accessible at no charge and will
contain the NAV of the Shares and the
Basket Gold Amount as of the prior
business day, the Bid-Ask Price, and a
calculation of the premium or discount
of the Bid-Ask Price in relation to the
closing NAV. Additionally, the Trust’s
Web site will also provide data in chart
form displaying the frequency
distribution of discounts and premiums
of the Bid-Ask Price against the NAV,
within appropriate ranges for each of
the four previous calendar quarters; the
Prospectus; and other applicable
quantitative information. If Amex halts
trading in the Shares, or the Indicative
Trust Value or the value of the
underlying COMEX gold futures
contract is not being calculated or
disseminated, the Exchange would halt
trading in the Shares.
The Commission notes that, if the
Shares should be delisted by the listing
exchange, the Exchange would no
longer have authority to trade the Shares
pursuant to this order.
In support of this proposal, the
Exchange has made the following
representations:
(1) The Exchange’s surveillance
procedures are adequate to address any
concerns associated with the trading of
the Shares on a UTP basis.
(2) The Exchange would inform its
members in an Information Circular of
the special characteristics and risks
associated with trading the Shares,
including suitability recommendation
requirements.
(3) The Exchange would require its
members to deliver a prospectus or
product description to investors
purchasing Shares prior to or
concurrently with a transaction in such
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10283
Shares and will note this prospectus
delivery requirement in the Information
Circular.
This approval order is conditioned on
the Exchange’s adherence to these
representations.
The Commission finds good cause for
approving this proposal before the
thirtieth day after the publication of
notice thereof in the Federal Register.
As noted above, the Commission
previously found that the listing and
trading of the Shares on Amex and
NYSE Arca is consistent with the Act.
The Commission presently is not aware
of any regulatory issue that should
cause it to revisit those findings or
would preclude the trading of the
Shares on the Exchange pursuant to
UTP. Furthermore, accelerated approval
of this proposal will facilitate Nasdaq’s
ability to continue trading these
securities as Nasdaq becomes an
exchange with respect to non-Nasdaqlisted securities, where there appears to
be no regulatory concerns about such
trading. Therefore, accelerating approval
of this proposal should benefit investors
by creating, without undue delay,
additional competition in the market for
such Shares.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,21 that the
proposed rule change (SR–NASDAQ–
2007–014), be, and it hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4038 Filed 3–6–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55379; File No. SR–NASD–
2007–017]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Amend the Alternative
Display Facility Quotation Update Fee
March 1, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
21 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
22 17
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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
italicized and proposed deletions are in
[brackets].
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD proposes to amend Rule 7010A
in light of the current participant
quoting and trading activity on the
Alternative Display Facility (‘‘ADF’’).
Below is the text of the proposed rule
change. Proposed new language is
(a) No Change.
(b) Quotation Updates
The following quotation update
charges will apply based on the average
daily number of publicly disseminated
trades reported to the media through the
ADF during the billing period. A
‘‘quotation update’’ includes any change
to the price or size of a displayed
quotation.
Average trades reported through the ADF per
day
Quotation update charge
Quotes updates provided at no charge
Less than 1 ........................................................
Between 1 and 100,000 ....................................
Between 100,001 and [150,000] 125,000 .........
Between 125,001 and 150,000 .........................
Greater than 150,000 ........................................
$.02 per quotation update ................................
$.01 per quotation update ................................
$[.01].005 per quotation update .......................
$.005 per quotation update ..............................
No Charge ........................................................
None.
5 quotation updates per trade.
[10]20 quotation updates per trade.
25 quotation updates per trade.
N/A.
*
business model at the time, given that
ECNs were the only ADF participants.
NASD has seen an increase in the
quote-to-trade ratios experienced by
certain ECNs and believes the impact of
Regulation NMS could potentially
increase them even further. Thus, NASD
proposes to amend the ADF quote
update pricing structure to address
these changes. Specifically, the new
pricing structure would continue to
require participants with high quote-totrade ratios to pay for a portion of their
quote activity, but at a reduced rate and
with the benefit of additional free quote
updates. The new pricing system
introduces five pricing tiers.
Participants that do not submit a single
trade report to NASD are not entitled to
receive any free quotes. Participants that
generate between one and 100,000 trade
prints per day receive five free quotes
per trade print, participants that
generate between 100,001 and 125,000
trade prints per day receive 20 free
quotes per trade print, participants that
generate between 125,001 and 150,000
trade prints per day receive 25 free
quotes per trade print, and those
participants that generate over 150,000
trade prints are not charged for
quotation updates.
NASD has filed the proposed rule
change for immediate effectiveness.
This proposed rule change would be
operational as of February 1, 2007, and
would therefore apply to February’s
quotation and trading activity.
of Section 15A(b)(5) of the Act,5 which
requires, among other things, that NASD
rules provide for the equitable
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using any
facility or system that NASD operates or
controls. NASD believes that the
proposed rule change would more
equitably set the level of charges being
imposed upon ADF participants in light
of changing market practices.
notice is hereby given that on February
27, 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 as a ‘‘noncontroversial’’ 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
*
*
*
*
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.
sroberts on PROD1PC70 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The current ADF pricing structure
imposes a quote fee of $0.01 per quote
for any ADF participant that has a daily
average of 150,000 or fewer trade reports
and no quote fee for daily average trade
reports over that activity level. It also
offers three tiers of free quotes.
Specifically, participants that generate
between one and 100,000 trade prints
per day receive five free quotes per trade
print, participants that generate between
100,001 and 150,000 trade prints per
day receive ten free quotes per trade
print, and those participants that
generate over 150,000 trade prints are
not charged for quotation updates. This
pricing structure was designed in part to
address the typical electronic
communications network (‘‘ECN’’)
3 15
U.S.C. 78s(b)(3)(A).
VerDate Aug<31>2005
18:25 Mar 06, 2007
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
4 17
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CFR 240.19b–4(f)(6).
Frm 00173
Fmt 4703
7010A. System Services
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 from the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
5 15
Sfmt 4703
U.S.C. 78o–3(b)(5).
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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6) thereunder.7
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 this new pricing structure
to apply immediately. For this reason,
the Commission designates the
proposed rule change to be operative
upon filing with the Commission.8
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 rulecomments@sec.gov. Please include File
Number SR–NASD–2007–017 on the
subject line.
• 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–2007–017. 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
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to 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, 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. The Commission has decided to waive
the five-day pre-filing requirement.
8 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
7 17
18:25 Mar 06, 2007
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–3952 Filed 3–6–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55374; File No. SR–
NYSEArca–2007–20]
Paper Comments
VerDate Aug<31>2005
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–2007–017 and
should be submitted on or before March
28, 2007.
Jkt 211001
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to NYSE Arca
Marketplace Trading Sessions
February 28, 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 February
26, 2007, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’), through its
wholly owned subsidiary NYSE Arca
Equities, Inc. (‘‘NYSE Arca Equities’’),
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 the
Exchange. The Exchange filed the
10285
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes, through
NYSE Arca Equities, to update the list
in NYSE Arca Equities Rule 7.34 of
securities eligible to trade in one or
more, but not all three, of the
Exchange’s trading sessions. The
Exchange proposes to add to the list
shares of certain Funds (‘‘Shares’’) that
are traded on NYSE Arca, L.L.C. (‘‘NYSE
Arca Marketplace’’), the equities trading
facility of NYSE Arca Equities, pursuant
to unlisted trading privileges (‘‘UTP’’).
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.nysearca.com), at the
principal office of the Exchange, 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, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange 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
NYSE Arca Equities Rule 7.34
currently provides, in part, that the
NYSE Arca Marketplace shall have three
trading sessions each day: an Opening
Session (1 a.m. Pacific Time (‘‘PT’’) to
6:30 a.m. PT), a Core Trading Session
(6:30 a.m. PT to 1 p.m. PT) and a Late
Trading Session (1 p.m. PT to 5 p.m.
PT), and that the Core Trading Session
for securities described in NYSE Arca
Equities Rules 5.1(b)(13), 5.1(b)(18),
5.2(j)(3), 8.100, 8.200, 8.201, 8.202,
8.203, 8.300, and 8.400 (each, a
‘‘Derivative Securities Product’’) shall
conclude at 1:15 pm PT.5
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3),
8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400
4 17
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 72, Number 44 (Wednesday, March 7, 2007)]
[Notices]
[Pages 10283-10285]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3952]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55379; File No. SR-NASD-2007-017]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change to Amend the Alternative Display Facility Quotation Update
Fee
March 1, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\
[[Page 10284]]
notice is hereby given that on February 27, 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 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 7010A in light of the current
participant quoting and trading activity on the Alternative Display
Facility (``ADF''). Below is the text of the proposed rule change.
Proposed new language is italicized and proposed deletions are in
[brackets].
7010A. System Services
(a) No Change.
(b) Quotation Updates
The following quotation update charges will apply based on the
average daily number of publicly disseminated trades reported to the
media through the ADF during the billing period. A ``quotation update''
includes any change to the price or size of a displayed quotation.
------------------------------------------------------------------------
Quotes updates
Average trades reported through Quotation update provided at no
the ADF per day charge charge
------------------------------------------------------------------------
Less than 1..................... $.02 per quotation None.
update.
Between 1 and 100,000........... $.01 per quotation 5 quotation
update. updates per
trade.
Between 100,001 and [150,000] $[.01].005 per [10]20 quotation
125,000. quotation update. updates per
trade.
Between 125,001 and 150,000..... $.005 per 25 quotation
quotation update. updates per
trade.
Greater than 150,000............ No Charge......... N/A.
------------------------------------------------------------------------
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. NASD has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The current ADF pricing structure imposes a quote fee of $0.01 per
quote for any ADF participant that has a daily average of 150,000 or
fewer trade reports and no quote fee for daily average trade reports
over that activity level. It also offers three tiers of free quotes.
Specifically, participants that generate between one and 100,000 trade
prints per day receive five free quotes per trade print, participants
that generate between 100,001 and 150,000 trade prints per day receive
ten free quotes per trade print, and those participants that generate
over 150,000 trade prints are not charged for quotation updates. This
pricing structure was designed in part to address the typical
electronic communications network (``ECN'') business model at the time,
given that ECNs were the only ADF participants.
NASD has seen an increase in the quote-to-trade ratios experienced
by certain ECNs and believes the impact of Regulation NMS could
potentially increase them even further. Thus, NASD proposes to amend
the ADF quote update pricing structure to address these changes.
Specifically, the new pricing structure would continue to require
participants with high quote-to-trade ratios to pay for a portion of
their quote activity, but at a reduced rate and with the benefit of
additional free quote updates. The new pricing system introduces five
pricing tiers. Participants that do not submit a single trade report to
NASD are not entitled to receive any free quotes. Participants that
generate between one and 100,000 trade prints per day receive five free
quotes per trade print, participants that generate between 100,001 and
125,000 trade prints per day receive 20 free quotes per trade print,
participants that generate between 125,001 and 150,000 trade prints per
day receive 25 free quotes per trade print, and those participants that
generate over 150,000 trade prints are not charged for quotation
updates.
NASD has filed the proposed rule change for immediate
effectiveness. This proposed rule change would be operational as of
February 1, 2007, and would therefore apply to February's quotation and
trading activity.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\5\ which requires, among
other things, that NASD rules provide for the equitable allocation of
reasonable dues, fees, and other charges among members and issuers and
other persons using any facility or system that NASD operates or
controls. NASD believes that the proposed rule change would more
equitably set the level of charges being imposed upon ADF participants
in light of changing market practices.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
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 from the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
[[Page 10285]]
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
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, 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. The Commission has decided to waive 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 this new
pricing structure to apply immediately. For this reason, the Commission
designates the proposed rule change to be operative upon filing with
the Commission.\8\
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\8\ 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-2007-017 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-2007-017. 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-2007-017 and should be submitted on or before March 28, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3952 Filed 3-6-07; 8:45 am]
BILLING CODE 8010-01-P
