Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NASD Rules 1012 (General Provisions) and 1013 (New Member Application and Interview) To Require an Applicant for Membership To Submit an Application in the Manner Prescribed by NASD, 11414-11416 [E7-4505]
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11414
Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
Nasdaq is concerned that some
members have abused the appeals
process by appealing all decisions in
which they are involved regardless of
merit or the value of shares at issue.
During December 2006 and January
2007, five firms were responsible for
44% of all appeals. Two appeals were
for odd lot amounts, including one
appeal for just 50 shares. Of the appeals
during this two-month period, 77% of
appeals were upheld by the MORC and
23% resulted in trade adjustments.
These statistics suggest that parties are
overusing and abusing the appellate
system because there is no downside
risk. A number of the appeals involve
trades that do not meet the numerical
thresholds and other factors used in
adjudicating clearly erroneous filings set
forth in IM–11890–4 and IM–11890–5.
As a result, the MORC is often serving
as a redundant decision maker in cases
where the outcome is not legitimately in
question. This is not the role Nasdaq
intended when it established the
appeals process using the MORC.
In order to reduce the number of
frivolous appeals and to preserve
Nasdaq’s ability to attract qualified
persons to serve on the MORC, Nasdaq
is proposing a modest fee of $500.00
that will be levied only in cases where
the MORC upholds the Nasdaq officer’s
decision. Firms would not be charged
for successful appeals. Nasdaq believes
that this fee will encourage members to
consider whether the facts and
economic value at stake merit appellate
consideration. Nasdaq notes that NYSE
Arca Equities, Inc. (‘‘NYSE Arca’’)
recently adopted a similar $500.00
appellate fee in order to reduce apparent
abuses of the appeals process on that
exchange.5
cprice-sewell on PROD1PC66 with NOTICES
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 Section 6(b)(4) of the
Act,7 in particular, in that the proposed
rule change provides for the equitable
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using any
facility or system which Nasdaq
operates or controls. Nasdaq believes
that the modest fee of $500 for an
unsuccessful appeal under Rule 11890
will be equitably assessed against
members that impose burdens on the
time of Nasdaq staff and MORC
members by filing appeals that lack
merit.
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)(ii) of the Act 8 and paragraph
(f)(2) of Rule 19b–49 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.10
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–NASDAQ–2007–013 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–NASDAQ–2007–013. This
file number should be included on the
subject line if e-mail is used. To help the
8 15
5 Securities
Exchange Act Release No. 54655
(October 26, 2006), 71 FR 64596 (November 2, 2006)
(SR–NYSEArca–2006–48).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
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Jkt 211001
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 For the purposes of calculating the 60-day
abrogation period, the Commission considers the
proposed rule change to have been filed on March
1, 2007, when Amendment No. 1 was filed.
9 17
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
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 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–2007–013 and
should be submitted on or before April
3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4506 Filed 3–12–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55412; File No. SR–NASD–
2007–015]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NASD Rules
1012 (General Provisions) and 1013
(New Member Application and
Interview) To Require an Applicant for
Membership To Submit an Application
in the Manner Prescribed by NASD
March 7, 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
20, 2007, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
11 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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Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by NASD. NASD
has designated the proposed rule change
as constituting a ‘‘non-controversial’’
proposed rule change under paragraph
(f)(6) of Rule 19b–4 under the Act,3
which renders the proposed rule change
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 1012 (General Provisions) and
1013 (New Member Application and
Interview) to require an applicant for
membership to submit an application in
the manner prescribed by NASD. The
text of the proposed rule change is
available at NASD, www.nasd.com, and
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,
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.
cprice-sewell on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Applying for NASD membership is a
comprehensive process requiring the
submission of extensive information,
considerable attention to detail, and a
substantial time commitment. To
streamline the application process and
outline clearly the information that
must be submitted with the application,
NASD recently amended Rule 1013
(New Member Application and
Interview) to require applicants to use a
standardized form, Form NMA, to
submit their membership applications.4
Form NMA is organized according to
3 Id.
4 See Securities Exchange Act Release No. 53564
(March 29, 2006), 71 FR 16847 (April 4, 2006) (SR–
NASD–2006–038).
VerDate Aug<31>2005
14:58 Mar 12, 2007
Jkt 211001
the 14 individual standards for
membership enumerated in Rule 1014
(Department Decision) and assists
applicants in compiling a complete
application package by listing the forms
and supporting documentation required
by Rule 1013. Applicants currently
submit Form NMA in hard copy to
NASD, along with the required forms
and supporting documentation, via
hand delivery, courier, or first-class
mail.5
NASD, however, previously indicated
in the rule filing requiring applicants to
use Form NMA that it intended to
develop systems to enable applicants to
submit Form NMA electronically. NASD
has now completed those systems and
converted Form NMA to an electronic
document. The electronic Form NMA
and the new electronic application
submission process changes only the
manner in which NASD receives the
information that a membership
application is required to include under
Rule 1013. They do not change the
information applicants must submit
pursuant to Rule 1013 or the standards
set forth in Rule 1014 for granting an
applicant’s membership application.
The proposed rule change amends
Rule 1012 to require applicants to file
an application in the manner prescribed
in Rule 1013. The proposed rule change
also amends Rule 1012(a) to reflect that
the electronic filing of a new member
application will be deemed complete on
the date specified on the confirmation
page generated by the electronic filing
system. In addition, the proposed rule
change amends Rule 1013(a) to require
new member applicants to file an
application in the manner prescribed by
NASD and to include the completed
Form NMA as part of the contents of a
membership application.
Finally, the proposed rule change
deletes outdated references in Rules
1011, 1012 and 1013 to ‘‘the
Association’’ and replaces them with
‘‘NASD.’’6
Prior to the proposed rule change
being operative and implemented,
NASD will make the Form NMA
available to applicants via Web CRD and
will outline details in a Notice to
Members regarding how to complete the
online form and submit it using the new
electronic filing system.7
5 See
Rule 1012(a)(1) and Rule 1013(a)(1).
no longer refers to itself using its full
corporate name or ‘‘the Association.’’ Instead,
NASD uses the name ‘‘NASD’’ unless otherwise
appropriate for corporate or regulatory reasons.
7 NASD will also provide notice through the
NASD Notice to Members process (or similar
guidance) of any systems changes to the electronic
application process that would alter the manner in
which applicants interact with the electronic filing
system.
6 NASD
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
11415
This move away from a paper new
member application to an electronic
application will further streamline and
make more efficient the new member
application process.8 An electronic
application process is also consistent
with NASD’s By-Laws, which state that
new member applications ‘‘shall be
made to the NASD via electronic
process or such other process as the
NASD may prescribe, on the form to be
prescribed by the NASD.’’9
As noted in Item 2 above, NASD has
filed the proposed rule change for
immediate effectiveness. NASD will
announce the implementation date of
the proposed rule change in a Notice to
Members to be published no later than
60 days following Commission notice of
the filing of the proposed rule change
for immediate effectiveness. The
implementation date will be 30 days
from the publication of the Notice to
Members.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,10 which
requires, among other things, that NASD
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 amends Rules
1012 and 1013 to require new member
applications to be submitted in the
manner prescribed by NASD, which
will be electronically. The proposed
rule change does not propose any new
or additional content requirements for
member applications. NASD believes
that the proposed rule change is
consistent with the provisions of
Section 15A(b)(6) as the requirement to
file electronic applications using Form
NMS will ensure a more streamlined
and efficient membership application
process.
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.
8 Cf. Securities Exchange Act Release No. 54654
(October 26, 2006), 71 FR 64326 (November 1, 2006)
(SR–NASD–2006–60) (order approving new NASD
Rule 3170 (Mandatory Electronic Filing
Requirements) giving NASD the authority to require
members to file or submit electronically any
regulatory notice or other document that a member
is required to file with (or otherwise submit to)
NASD).
9 NASD By-Laws, Art. IV, Sec. 1(a).
10 15 U.S.C. 78o-3(b)(6).
E:\FR\FM\13MRN1.SGM
13MRN1
11416
Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
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 proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) impose any significant burden on
competition; and
(iii) become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 11 and Rule 19b–4(f)(6)
thereunder.12
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.
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:
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 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–2007–015 and
should be submitted on or before April
3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4505 Filed 3–12–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55409; File No. SR–NASD–
2007–004]
cprice-sewell on PROD1PC66 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–NASD–2007–015 on the
subject line.
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving
Proposed Rule Change as Modified by
Amendment No. 1 To Amend NASD
Rule 7010(k) Relating to Transaction
Reporting and Compliance Engine
Transaction Data
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–2007–015. 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/
March 6, 2007.
On January 16, 2007, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to offer
subscribers to its Transaction Reporting
and Compliance Engine system
(‘‘TRACE’’) the ability to receive, for a
reduced fee, a ‘‘snapshot’’ of real-time
TRACE transaction data once each day
rather than continuously throughout the
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 15
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
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14:58 Mar 12, 2007
1 15
Jkt 211001
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
day. The proposed rule change was
published for comment in the Federal
Register on February 2, 2007.3 The
Commission received no comments
regarding the proposal. On March 2,
2007, the Exchange submitted
Amendment No. 1 to the proposed rule
change.4
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities association.5 The proposal
would offer a new TRACE subscription
option whereby subscribers could pay
$250/month to receive TRACE
transaction data daily, once a day
(‘‘Snapshot TRACE data’’) rather than
paying $1,500/month for continuous
access to TRACE transaction data.
NASD has identified certain market
participants, namely institutional
investors, who only need a single price,
daily, for each security for purposes of
position valuation. NASD believes that,
given the limited need for TRACE
transaction data for these market
participants, the $1,500/month charge
for continuous access to TRACE
transaction data may be unnecessarily
expensive for them. NASD further
believes that the proposed charge of
$250/month for Snapshot TRACE data is
reasonable and more appropriate for the
tailored transaction informational needs
of certain institutional market
participants, who are currently
foregoing TRACE transaction data at the
higher monthly charge for continuous
data.
The Commission finds that the
proposed rule change is consistent with
the Act, and particularly with Section
15A(b)(5) thereof,6 which requires that
NASD’s rules provide for the equitable
allocation of dues, fees, and other
charges among members and issuers and
other persons using any facility or
system which NASD operates or
controls. The Commission believes that
the proposed rule change, by offering
the option of tailored access to TRACE
transaction data at a reduced cost, is
reasonable.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–NASD–2007–
3 See Securities Exchange Act Release No. 55180
(January 26, 2007), 72 FR 5095.
4 Amendment No. 1 made technical changes to
the proposal and is not subject to notice and
comment.
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78o–3(b)(5).
7 15 U.S.C. 78s(b)(2).
E:\FR\FM\13MRN1.SGM
13MRN1
]]>Agencies
[Federal Register Volume 72, Number 48 (Tuesday, March 13, 2007)]
[Notices]
[Pages 11414-11416]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-4505]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55412; File No. SR-NASD-2007-015]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend NASD Rules 1012 (General Provisions) and 1013 (New
Member Application and Interview) To Require an Applicant for
Membership To Submit an Application in the Manner Prescribed by NASD
March 7, 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 20, 2007, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange
[[Page 11415]]
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by NASD. NASD
has designated the proposed rule change as constituting a ``non-
controversial'' proposed rule change under paragraph (f)(6) of Rule
19b-4 under the Act,\3\ which renders the proposed rule change
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\ Id.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD proposes to amend NASD Rules 1012 (General Provisions) and
1013 (New Member Application and Interview) to require an applicant for
membership to submit an application in the manner prescribed by NASD.
The text of the proposed rule change is available at NASD,
www.nasd.com, and 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, 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
Applying for NASD membership is a comprehensive process requiring
the submission of extensive information, considerable attention to
detail, and a substantial time commitment. To streamline the
application process and outline clearly the information that must be
submitted with the application, NASD recently amended Rule 1013 (New
Member Application and Interview) to require applicants to use a
standardized form, Form NMA, to submit their membership
applications.\4\ Form NMA is organized according to the 14 individual
standards for membership enumerated in Rule 1014 (Department Decision)
and assists applicants in compiling a complete application package by
listing the forms and supporting documentation required by Rule 1013.
Applicants currently submit Form NMA in hard copy to NASD, along with
the required forms and supporting documentation, via hand delivery,
courier, or first-class mail.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 53564 (March 29,
2006), 71 FR 16847 (April 4, 2006) (SR-NASD-2006-038).
\5\ See Rule 1012(a)(1) and Rule 1013(a)(1).
---------------------------------------------------------------------------
NASD, however, previously indicated in the rule filing requiring
applicants to use Form NMA that it intended to develop systems to
enable applicants to submit Form NMA electronically. NASD has now
completed those systems and converted Form NMA to an electronic
document. The electronic Form NMA and the new electronic application
submission process changes only the manner in which NASD receives the
information that a membership application is required to include under
Rule 1013. They do not change the information applicants must submit
pursuant to Rule 1013 or the standards set forth in Rule 1014 for
granting an applicant's membership application.
The proposed rule change amends Rule 1012 to require applicants to
file an application in the manner prescribed in Rule 1013. The proposed
rule change also amends Rule 1012(a) to reflect that the electronic
filing of a new member application will be deemed complete on the date
specified on the confirmation page generated by the electronic filing
system. In addition, the proposed rule change amends Rule 1013(a) to
require new member applicants to file an application in the manner
prescribed by NASD and to include the completed Form NMA as part of the
contents of a membership application.
Finally, the proposed rule change deletes outdated references in
Rules 1011, 1012 and 1013 to ``the Association'' and replaces them with
``NASD.''\6\
---------------------------------------------------------------------------
\6\ NASD no longer refers to itself using its full corporate
name or ``the Association.'' Instead, NASD uses the name ``NASD''
unless otherwise appropriate for corporate or regulatory reasons.
---------------------------------------------------------------------------
Prior to the proposed rule change being operative and implemented,
NASD will make the Form NMA available to applicants via Web CRD and
will outline details in a Notice to Members regarding how to complete
the online form and submit it using the new electronic filing
system.\7\
---------------------------------------------------------------------------
\7\ NASD will also provide notice through the NASD Notice to
Members process (or similar guidance) of any systems changes to the
electronic application process that would alter the manner in which
applicants interact with the electronic filing system.
---------------------------------------------------------------------------
This move away from a paper new member application to an electronic
application will further streamline and make more efficient the new
member application process.\8\ An electronic application process is
also consistent with NASD's By-Laws, which state that new member
applications ``shall be made to the NASD via electronic process or such
other process as the NASD may prescribe, on the form to be prescribed
by the NASD.''\9\
---------------------------------------------------------------------------
\8\ Cf. Securities Exchange Act Release No. 54654 (October 26,
2006), 71 FR 64326 (November 1, 2006) (SR-NASD-2006-60) (order
approving new NASD Rule 3170 (Mandatory Electronic Filing
Requirements) giving NASD the authority to require members to file
or submit electronically any regulatory notice or other document
that a member is required to file with (or otherwise submit to)
NASD).
\9\ NASD By-Laws, Art. IV, Sec. 1(a).
---------------------------------------------------------------------------
As noted in Item 2 above, NASD has filed the proposed rule change
for immediate effectiveness. NASD will announce the implementation date
of the proposed rule change in a Notice to Members to be published no
later than 60 days following Commission notice of the filing of the
proposed rule change for immediate effectiveness. The implementation
date will be 30 days from the publication of the Notice to Members.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\10\ which requires, among
other things, that NASD 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 amends Rules 1012 and 1013 to
require new member applications to be submitted in the manner
prescribed by NASD, which will be electronically. The proposed rule
change does not propose any new or additional content requirements for
member applications. NASD believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(6) as the requirement
to file electronic applications using Form NMS will ensure a more
streamlined and efficient membership application process.
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\10\ 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 will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 11416]]
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 proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) impose any significant burden on competition; and
(iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and
Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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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.
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-2007-015 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-2007-015. 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 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-2007-015 and should be submitted on or before April 3, 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. E7-4505 Filed 3-12-07; 8:45 am]
BILLING CODE 8010-01-P
