Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Technical Changes to the Customer, Industry and Mediation Codes, 26664-26666 [E7-8914]

Download as PDF 26664 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices fees applicable to members and (2) the monthly access fee applicable to ISE market makers. As a further incentive for market makers to quote in FX options, the Exchange proposes to waive one API for each class of market maker in FX options. For example, a firm that is both a primary market maker (‘‘PMM’’) and a competitive market maker (‘‘CMM’’) in FX options (‘‘FXPMM’’ and ‘‘FXCMM,’’ respectively) will receive a waiver of two APIs, one for quoting as a FXPMM and one for quoting as a FXCMM. Finally, FX options are an options product and, as such, are subject to certain other fees that are currently on the Schedule of Fees. These fees include the minimum PMM fee and the Inactivity fee applicable to both PMMs and CMMs. In order to promote trading in FX options, ISE proposes to exclude FXPMMs and FXCMMs from being subject to these fees. The Exchange believes that the proposed rule change will further the Exchange’s goal of introducing new products to the marketplace that are competitively priced. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6(b) of the Act 11 in general, and Section 6(b)(4) of the Act 12 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Exchange members and other persons using Exchange facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change will not impose 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 pwalker on PROD1PC71 with NOTICES The Exchange has not solicited, and does not intend to solicit, comments on the proposed rule change. The Exchange has not received any unsolicited written comments from its members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective pursuant to 11 15 12 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 Section 19(b)(3)(A)(ii) of the Act 13 and Rule 19b–4(f)(2) 14 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. 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.15 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–ISE–2007–25 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–ISE–2007–25. 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 13 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 15 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, the Commission considers the period to commence on May 2, 2007, the date on which the Exchange filed Amendment No. 1. Room. Copies of such filing also will be available for inspection and copying at the principal office of ISE. 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–ISE–2007–25 and should be submitted on or before May 31, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.16 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8912 Filed 5–9–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55703; File No. SR–NASD– 2007–026] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Technical Changes to the Customer, Industry and Mediation Codes May 3, 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 April 13, 2007 the National Association of Securities Dealers, Inc. (‘‘NASD ‘‘), through its wholly owned subsidiary, NASD Dispute Resolution, Inc. (‘‘NASD Dispute Resolution’’) 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 Dispute Resolution. NASD has designated the proposed rule change as concerned solely with the administration of the self-regulatory organization under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(3) thereunder,4 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 14 17 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(3). 1 15 E:\FR\FM\10MYN1.SGM 10MYN1 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NASD Dispute Resolution is proposing to amend the NASD Codes of Arbitration Procedure for Customer Disputes (‘‘Customer Code’’) and for Industry Disputes (‘‘Industry Code’’), and to amend the NASD Code Mediation Procedure (‘‘Mediation Code’’) (collectively, the ‘‘Codes’’) to delete rule language that was rescinded prior to the approval of the Codes, to change a reference that was amended by a separate NASD proposal, and to insert rule language that was approved by the Commission prior to its approval of the Customer and Industry Codes, but was inadvertently omitted from the Customer and Industry Codes. Proposed new language is in italics; proposed deletions are in brackets. The text of the proposed rule change is available at NASD, on NASD’s Web site (https:// www.nasd.com) 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, 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 pwalker on PROD1PC71 with NOTICES Recently, NASD reorganized its dispute resolution rules (Rules 10000 et seq.) into three separate procedural codes: the Customer Code; the Industry Code; and the Mediation Code.5 The Customer, Industry and Mediation Codes replaced the NASD Code of Arbitration Procedure (‘‘old Code’’) in its entirety. 5 In 2004, NASD filed separately with the Commission the Industry and Mediation Codes. See Securities Exchange Act Release No. 51857 (June 15, 2005), 70 FR 36430 (June 23, 2005) (File No. SR–NASD–2004–011) (notice); and Securities Exchange Act Release No. 51855 (June 15, 2005), 70 FR 36440 (June 23, 2005) (File No. SR–NASD– 2004–013) (notice). VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 The Commission approved the Mediation Code on October 31, 2005.6 The Commission approved the Customer Code and Industry Code (collectively, ‘‘new Codes’’) on January 24, 2007,7 and the new Codes became effective on April 16, 2007.8 NASD is proposing several technical, nonsubstantive amendments to the Mediation Code and the new Arbitration Codes. With these amendments, NASD is proposing to delete provisions that were rescinded prior to the Codes’ approval, to change a reference that was amended by a separate NASD proposal, and to add a provision that was approved by the Commission prior to its approval of the new Mediation and Arbitration Codes, but was inadvertently omitted from the new Codes. First, NASD proposes to delete Interpretive Material (IM) 12000(f) and IM–13000(f) from the Arbitration Codes because these paragraphs were rescinded by SR–NASD–2005–070.9 These paragraphs state that failure by a member or person associated with a member to waive the California Rules of Court, Division VI of the Appendix, entitled, ‘‘Ethics Standards for Neutral Arbitrators in Contractual Arbitration’’ in certain circumstances may be deemed conduct inconsistent with just and equitable principle of trade, and a violation of Rule 2110. These provisions were included in IM–12000 and IM– 13000 of the new Codes inadvertently, and should be removed. Second, NASD proposes to amend the numerical reference in Rule 12102(a) of the Customer Code, Rule 13102(a) of the Industry Code and Rule 14102(a) of the Mediation Code, which identify the part of the Plan of Allocation and Delegation of Functions by NASD to Subsidiaries (‘‘Delegation Plan’’) that applies to NASD Dispute Resolution. In a proposal filed on September 5, 2006 to reflect the complete separation of NASD from the Nasdaq Stock Market, NASD amended the number of the section of the Delegation Plan that applies to NASD Dispute Resolution.10 As a result of this 6 See Securities Exchange Act Release No. 52705 (October 31, 2005), 70 FR 67525 (November 7, 2005) (File No. SR–NASD–2004–013) (approval order). 7 See Securities Exchange Act Release No. 55158 (Jan. 24, 2007), 72 FR 4574 (Jan. 31, 2007) (File Nos. SR–NASD–2003–158 and SR–NASD–2004–011) (approval orders). 8 The changes were announced in Notice to Members 07–07 (Feb. 2007). 9 See Securities Exchange Act Release No. 51825 (June 13, 2005), 70 FR 35482 (June 20, 2005) (File No. SR–NASD–2005–070) (approval order). 10 See Securities Exchange Act Release No. 54798 (November 21, 2006), 71 FR 69156 (November 29, 2006) (File No. SR–NASD–2006–104) (approval order). PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 26665 change, NASD is proposing to amend Rules 12102(a), 13102(a), and 14102(a) to change the reference to the Delegation Plan. Finally, NASD proposes to insert a provision in the proposed amendments to Rules 12206(c) and 13206(c) of the Customer Code and Industry Code, respectively, stating that the six-year time limit on the submission of claims shall not apply to any claim that is directed to arbitration by a court of competent jurisdiction upon request of a member or associated person. This provision was approved by the Commission prior to its approval of the new Arbitration Codes, but was inadvertently omitted from them.11 2. Statutory Basis NASD believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,12 which provides, 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. NASD believes that the proposed rule change is consistent with the provision of the Act noted above because it will assist in the administration of arbitrations by clarifying the Customer, Industry, and Mediation Codes, which will make them easier to understand and apply. (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 by NASD. 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)(iii) of the Act and Rule 19b– 4(f)(3) thereunder because it is concerned solely with the administration of the self-regulatory 11 See Securities Exchange Act Release No. 50714 (November 22, 2004), 69 FR 69971 (December 1, 2004) (File No. SR–NASD–2003–101) (approval order). 12 15 U.S.C. 78o–3(b)(6). E:\FR\FM\10MYN1.SGM 10MYN1 26666 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices organization.13 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. should be submitted on or before May 31, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8914 Filed 5–9–07; 8:45 am] BILLING CODE 8010–01–P 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 pwalker on PROD1PC71 with NOTICES • 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–2007–026 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55707; File No. SR– NYSEArca–2007–41] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Arca Marketplace Trading Sessions May 4, 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 April 20, 2007 NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’), through its wholly owned Paper Comments subsidiary NYSE Arca Equities, Inc. • Send paper comments in triplicate (‘‘NYSE Arca Equities’’), filed with the to Nancy M. Morris, Secretary, Securities and Exchange Commission Securities and Exchange Commission, (‘‘Commission’’) the proposed rule 100 F Street, NE., Washington, DC change as described in Items I and II 20549–1090. below, which Items have been substantially prepared by the Exchange. All submissions should refer to File The Exchange filed the proposal Number SR–NASD–2007–026. This file pursuant to Section 19(b)(3)(A) of the number should be included on the subject line if e-mail is used. To help the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposed rule change Commission process and review your effective upon filing with the comments more efficiently, please use only one method. The Commission will Commission. The Commission is post all comments on the Commission’s publishing this notice to solicit comments on the proposed rule change Internet Web site (https://www.sec.gov/ from interested persons. rules/sro.shtml). Copies of the submission, all subsequent I. Self-Regulatory Organization’s amendments, all written statements Statement of the Terms of Substance of with respect to the proposed rule the Proposed Rule Change change that are filed with the The Exchange proposes, through Commission, and all written NYSE Arca Equities, to update the list communications relating to the in NYSE Arca Equities Rule 7.34 of proposed rule change between the Commission and any person, other than securities eligible to trade in one or more, but not all three, of the those that may be withheld from the Exchange’s trading sessions. The public in accordance with the Exchange proposes to add to the lists provisions of 5 U.S.C. 552, will be the following investment company units available for inspection and copying at (ICUs) 5 of funds that are trading on the principal office of NASD. All comments received will be posted 14 17 CFR 200.30–3(a)(12). without change; the Commission does 1 15 U.S.C.78s(b)(1). not edit personal identifying 2 17 CFR 240.19b–4. information from submissions. You 3 15 U.S.C. 78s(b)(3)(A). should submit only information that 4 17 CFR 240.19b–4(f)(6). 5 NYSE Arca Equities Rule 5.1(b)(15) defines an you wish to make available publicly. All ICU as a security representing an interest in a submissions should refer to the File registered investment company that could be Number SR–NASD–2007–026 and 13 17 organized as a unit investment trust, an open-end management investment company, or a similar entity. CFR 240.19b–4(f)(3). VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 NYSE Arca, L.L.C. (‘‘NYSE Arca Marketplace’’), the equities trading facility of NYSE Arca Equities, pursuant to unlisted trading privileges (‘‘UTP’’): (1) SPDR 6 S&P 7 International Small Cap ETF; and (2) SPDR S&P World ex-US ETF. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.nyse.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 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 p.m. PT.8 NYSE Arca Equities Rule 7.34 includes a list of those securities which are eligible to trade in one or more, but not all three, of the Exchange’s trading sessions. The Exchange maintains on its Web site (https://www.nysearca.com) a list that identifies all securities traded 6 SPDR is a registered trademark of The McGraw-Hill Companies, Inc. 7 S&P is a registered trademark of The McGrawHill Companies, Inc. 8 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 relate to Unit Investment Trusts, ICUs, Portfolio Depositary Receipts, Trust Issued Receipts, Commodity-Based Trust Shares, Currency Trust Shares, Commodity Index Trust Shares, Partnership Units, and Paired Trust Shares, respectively. See Securities Exchange Act Release No. 54997 (December 21, 2006), 71 FR 78501 (December 29, 2006) (SR–NYSEArca–2006–77) (amending NYSE Arca Equities Rule 7.34). E:\FR\FM\10MYN1.SGM 10MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 90 (Thursday, May 10, 2007)]
[Notices]
[Pages 26664-26666]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8914]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55703; File No. SR-NASD-2007-026]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Implement Technical Changes to the Customer, Industry 
and Mediation Codes

May 3, 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 April 13, 2007 the National Association of Securities Dealers, Inc. 
(``NASD ``), through its wholly owned subsidiary, NASD Dispute 
Resolution, Inc. (``NASD Dispute Resolution'') 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 Dispute Resolution. NASD has 
designated the proposed rule change as concerned solely with the 
administration of the self-regulatory organization under Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\ 
which renders the proposal effective upon receipt of this filing by 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).

---------------------------------------------------------------------------

[[Page 26665]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASD Dispute Resolution is proposing to amend the NASD Codes of 
Arbitration Procedure for Customer Disputes (``Customer Code'') and for 
Industry Disputes (``Industry Code''), and to amend the NASD Code 
Mediation Procedure (``Mediation Code'') (collectively, the ``Codes'') 
to delete rule language that was rescinded prior to the approval of the 
Codes, to change a reference that was amended by a separate NASD 
proposal, and to insert rule language that was approved by the 
Commission prior to its approval of the Customer and Industry Codes, 
but was inadvertently omitted from the Customer and Industry Codes. 
Proposed new language is in italics; proposed deletions are in 
brackets. The text of the proposed rule change is available at NASD, on 
NASD's Web site (https://www.nasd.com) 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, 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
    Recently, NASD reorganized its dispute resolution rules (Rules 
10000 et seq.) into three separate procedural codes: the Customer Code; 
the Industry Code; and the Mediation Code.\5\ The Customer, Industry 
and Mediation Codes replaced the NASD Code of Arbitration Procedure 
(``old Code'') in its entirety.
---------------------------------------------------------------------------

    \5\ In 2004, NASD filed separately with the Commission the 
Industry and Mediation Codes. See Securities Exchange Act Release 
No. 51857 (June 15, 2005), 70 FR 36430 (June 23, 2005) (File No. SR-
NASD-2004-011) (notice); and Securities Exchange Act Release No. 
51855 (June 15, 2005), 70 FR 36440 (June 23, 2005) (File No. SR-
NASD-2004-013) (notice).
---------------------------------------------------------------------------

    The Commission approved the Mediation Code on October 31, 2005.\6\ 
The Commission approved the Customer Code and Industry Code 
(collectively, ``new Codes'') on January 24, 2007,\7\ and the new Codes 
became effective on April 16, 2007.\8\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 52705 (October 31, 
2005), 70 FR 67525 (November 7, 2005) (File No. SR-NASD-2004-013) 
(approval order).
    \7\ See Securities Exchange Act Release No. 55158 (Jan. 24, 
2007), 72 FR 4574 (Jan. 31, 2007) (File Nos. SR-NASD-2003-158 and 
SR-NASD-2004-011) (approval orders).
    \8\ The changes were announced in Notice to Members 07-07 (Feb. 
2007).
---------------------------------------------------------------------------

    NASD is proposing several technical, nonsubstantive amendments to 
the Mediation Code and the new Arbitration Codes. With these 
amendments, NASD is proposing to delete provisions that were rescinded 
prior to the Codes' approval, to change a reference that was amended by 
a separate NASD proposal, and to add a provision that was approved by 
the Commission prior to its approval of the new Mediation and 
Arbitration Codes, but was inadvertently omitted from the new Codes.
    First, NASD proposes to delete Interpretive Material (IM) 12000(f) 
and IM-13000(f) from the Arbitration Codes because these paragraphs 
were rescinded by SR-NASD-2005-070.\9\ These paragraphs state that 
failure by a member or person associated with a member to waive the 
California Rules of Court, Division VI of the Appendix, entitled, 
``Ethics Standards for Neutral Arbitrators in Contractual Arbitration'' 
in certain circumstances may be deemed conduct inconsistent with just 
and equitable principle of trade, and a violation of Rule 2110. These 
provisions were included in IM-12000 and IM-13000 of the new Codes 
inadvertently, and should be removed.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 51825 (June 13, 
2005), 70 FR 35482 (June 20, 2005) (File No. SR-NASD-2005-070) 
(approval order).
---------------------------------------------------------------------------

    Second, NASD proposes to amend the numerical reference in Rule 
12102(a) of the Customer Code, Rule 13102(a) of the Industry Code and 
Rule 14102(a) of the Mediation Code, which identify the part of the 
Plan of Allocation and Delegation of Functions by NASD to Subsidiaries 
(``Delegation Plan'') that applies to NASD Dispute Resolution. In a 
proposal filed on September 5, 2006 to reflect the complete separation 
of NASD from the Nasdaq Stock Market, NASD amended the number of the 
section of the Delegation Plan that applies to NASD Dispute 
Resolution.\10\ As a result of this change, NASD is proposing to amend 
Rules 12102(a), 13102(a), and 14102(a) to change the reference to the 
Delegation Plan.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 54798 (November 21, 
2006), 71 FR 69156 (November 29, 2006) (File No. SR-NASD-2006-104) 
(approval order).
---------------------------------------------------------------------------

    Finally, NASD proposes to insert a provision in the proposed 
amendments to Rules 12206(c) and 13206(c) of the Customer Code and 
Industry Code, respectively, stating that the six-year time limit on 
the submission of claims shall not apply to any claim that is directed 
to arbitration by a court of competent jurisdiction upon request of a 
member or associated person. This provision was approved by the 
Commission prior to its approval of the new Arbitration Codes, but was 
inadvertently omitted from them.\11\
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 50714 (November 22, 
2004), 69 FR 69971 (December 1, 2004) (File No. SR-NASD-2003-101) 
(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,\12\ which provides, 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. NASD believes that the proposed rule change is 
consistent with the provision of the Act noted above because it will 
assist in the administration of arbitrations by clarifying the 
Customer, Industry, and Mediation Codes, which will make them easier to 
understand and apply.
---------------------------------------------------------------------------

    \12\ 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 by NASD.

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)(iii) of the Act and Rule 19b-4(f)(3) thereunder because it 
is concerned solely with the administration of the self-regulatory

[[Page 26666]]

organization.\13\ 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.
---------------------------------------------------------------------------

    \13\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

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-2007-026 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-2007-026. 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 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 the File Number SR-NASD-2007-026 and should be 
submitted on or before May 31, 2007.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8914 Filed 5-9-07; 8:45 am]
BILLING CODE 8010-01-P

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