Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Technical Amendment to New NASD Rule 2342 (SIPC Information), 32934-32935 [E7-11441]
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<![CDATA[
32934
Federal Register / Vol. 72, No. 114 / Thursday, June 14, 2007 / Notices
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the CBOE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–CBOE–2007–60 and should
be submitted on or before July 5, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Nancy M. Morris,
Secretary.
[FR Doc. E7–11506 Filed 6–13–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55879; File No. SR–NASD–
2007–036]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to a Technical
Amendment to New NASD Rule 2342
(SIPC Information)
jlentini on PROD1PC65 with NOTICES
June 8, 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 June 1,
2007, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASD. NASD
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
17:22 Jun 13, 2007
Jkt 211001
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
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to amend Rule
2342 (SIPC Information) to make a
technical amendment to clarify the
categories of members that are excepted
from the scope of the rule. Below is the
text of the proposed rule change.5
Proposed new language is in italics;
proposed deletions are in brackets.
*
*
*
*
*
2342. SIPC Information
All members, except those members:
(a) That pursuant to Section 3(a)(2)(A)(i)
through (iii) of the Securities Investor
Protection Act of 1970 (SIPA) are
excluded from membership in the
Securities Investor Protection
Corporation (SIPC) and that are not SIPC
members; [and] or (b) whose business
consists exclusively of the sale of
investments that are ineligible for SIPC
protection, shall advise all new
customers, in writing, at the opening of
an account, that they may obtain
information about SIPC, including the
SIPC brochure, by contacting SIPC, and
also shall provide the Web site address
and telephone number of SIPC. In
addition, such members shall provide
all customers with the same
information, in writing, at least once
each year. In cases where both an
introducing firm and clearing firm
service an account, the firms may assign
these requirements to one of the firms.
*
*
*
*
*
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
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The underlying rule text used in this proposed
rule change is based on new NASD Rule 2342
which was approved by the SEC on May 10, 2007.
See Securities Exchange Act Release No. 55737
(May 10, 2007), 72 FR 27606 (May 16, 2007)
(Approval Order).
4 17
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
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
On May 10, 2006, the Commission
approved new Rule 2342 (SIPC
Information) to require NASD members,
except those members (a) that pursuant
to Section 3(a)(2)(A)(i) through (iii) of
the Securities Investor Protection Act of
1970 (‘‘SIPA’’) are excluded from
membership in the Securities Investor
Protection Corporation (‘‘SIPC’’) and
that are not SIPC members; or (b) whose
business consists exclusively of the sale
of investments that are ineligible for
SIPC protection, to provide new
customers, and all customers annually,
with certain information about SIPC.6
As approved, however, the rule text
could be mistakenly read to except only
those members that are excluded from
membership in SIPC and are not SIPC
members, and also have a business
consisting exclusively of investment
products that are ineligible for SIPC
protection. Accordingly, NASD is filing
this proposed rule change to delete the
‘‘and’’ between paragraphs (a) and (b) of
new Rule 2342 and replace it with an
‘‘or’’ to clarify that the rule excepts from
its requirements a member that meets
the conditions in either paragraphs (a)
or (b).
NASD has filed the proposed rule
change for immediate effectiveness. The
effective date of new Rule 2342, as
amended by this proposed rule change,
is November 6, 2007.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,7 which
requires, among other things, that NASD
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 protection
of investors and the public interest in
that it will avoid any confusion when
reading the provisions of Rule 2342.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change will result in any
6 See
7 15
E:\FR\FM\14JNN1.SGM
supra note 5.
U.S.C. 78o–3(b)(6).
14JNN1
Federal Register / Vol. 72, No. 114 / Thursday, June 14, 2007 / Notices
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.8
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) 9 of the Act and Rule 19b–
4(f)(6) thereunder.10
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
jlentini on PROD1PC65 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–2007–036 on the
subject line.
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 the File
Number SR–NASD–2007–036 and
should be submitted on or before July 5,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–11441 Filed 6–13–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55886; File No. SR–NASD–
2007–027]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving
Proposed Rule Change Relating to
SEC Section 31-Related Fees
June 8, 2007.
On April 17, 2007, the National
Association of Securities Dealers, Inc.
Paper Comments
(‘‘NASD’’) filed with the Securities and
• Send paper comments in triplicate
Exchange Commission (‘‘SEC’’ or
to Nancy M. Morris, Secretary,
‘‘Commission’’), pursuant to Section
Securities and Exchange Commission,
19(b)(1) of the Securities Exchange Act
100 F Street, NE., Washington, DC
of 1934 (‘‘Act’’) 1 and Rule 19b–4
20549–1090.
thereunder,2 a proposal to allow
All submissions should refer to File
member firms to voluntarily submit,
Number SR–NASD–2007–036. This file
within six months of the effective date
number should be included on the
of the proposal, funds previously
subject line if e-mail is used. To help the accumulated by member firms to satisfy
Commission process and review your
their, and subsequently NASD’s,
comments more efficiently, please use
obligation to remit SEC Section 318 15
11 17
9 15
U.S.C. 78a.
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6).
1 15
VerDate Aug<31>2005
17:22 Jun 13, 2007
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Jkt 211001
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
32935
related fees, to NASD. The proposed
rule change was published for comment
in the Federal Register on May 9, 2007.3
The Commission received one comment
letter regarding the proposal.4 This
order approves the proposed rule
change.
Pursuant to Section 31 of the Act 5
and SEC Rule 31,6 NASD and the
national securities exchanges
(collectively ‘‘SROs’’) are required to
pay a transaction fee to the SEC that is
designed to recover the costs related to
the government’s supervision and
regulation of the securities markets and
securities professionals. To offset this
obligation, NASD assesses its clearing
and self-clearing members a regulatory
fee in accordance with Section 3 of
Schedule A of the NASD By-Laws,
which mirrors the SEC Section 31 fee in
scope and amount. Clearing members
may in turn seek to charge a fee to their
customers or correspondent firms. Any
allocation of the fee between a clearing
member and its correspondent firm or
customer is the responsibility of the
clearing member.
NASD states that reconciling the
amounts billed by NASD to member
firms and the amounts collected by
member firms from their customers
historically has been difficult, causing
surpluses to accumulate at some
member firms (referred to as
‘‘accumulated funds’’). These
accumulated funds were not remitted to
NASD, despite the fact that these
charges may have been previously
identified as ‘‘Section 31 Fees’’ or ‘‘SEC
Fees’’ by certain firms.7
Prompted by a November 2004
Commission letter requesting an NASD
analysis of and plan for addressing the
accumulated funds issue, NASD
surveyed 240 member clearing and self3 Securities Exchange Act Release No. 55697 (May
2, 2007), 72 FR 26432 (May 9, 2007).
4 See Letter from Mary Yeager, Assistant
Secretary, New York Stock Exchange LLC (‘‘NYSE’’)
to Nancy M. Morris, Secretary, Commission, dated
June 5, 2007 (‘‘NYSE Comment’’).
5 15 U.S.C. 78ee.
6 17 CFR 240.31.
7 NASD’s rule also previously referred to this fee
as an ‘‘SEC Transaction Fee.’’ The SEC stated in its
release adopting new Rule 31 and Rule 31T that ‘‘it
is misleading to suggest that a customer or [selfregulatory organization] member incurs an
obligation to the Commission under Section 31.’’
Securities Exchange Act Release No. 49928 (June
28, 2004), 69 FR 41060, 41072 (July 7, 2004). In
response to this statement, NASD amended its rule
to refer to this fee as a ‘‘Regulatory Transaction
Fee.’’ See Securities Exchange Act Release No.
50274 (August 26, 2004), 69 FR 53757 (September
2, 2004) (SR–NASD–2004–129). Further, NASD
issued guidance to ensure there is no confusion in
the marketplace regarding NASD’s ‘‘Regulatory
Transaction Fee’’ and the ‘‘SEC’s Section 31 Fee.’’
See Notice to Members 05–11 (February 2005) and
Notice to Members 04–63 (August 2004).
E:\FR\FM\14JNN1.SGM
14JNN1
]]>Agencies
[Federal Register Volume 72, Number 114 (Thursday, June 14, 2007)]
[Notices]
[Pages 32934-32935]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11441]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55879; File No. SR-NASD-2007-036]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to a Technical Amendment to New NASD Rule 2342
(SIPC Information)
June 8, 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 June 1, 2007, the National Association of Securities Dealers, Inc.
(``NASD'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been 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 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).
\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 is proposing to amend Rule 2342 (SIPC Information) to make a
technical amendment to clarify the categories of members that are
excepted from the scope of the rule. Below is the text of the proposed
rule change.\5\ Proposed new language is in italics; proposed deletions
are in brackets.
---------------------------------------------------------------------------
\5\ The underlying rule text used in this proposed rule change
is based on new NASD Rule 2342 which was approved by the SEC on May
10, 2007. See Securities Exchange Act Release No. 55737 (May 10,
2007), 72 FR 27606 (May 16, 2007) (Approval Order).
---------------------------------------------------------------------------
* * * * *
2342. SIPC Information
All members, except those members: (a) That pursuant to Section
3(a)(2)(A)(i) through (iii) of the Securities Investor Protection Act
of 1970 (SIPA) are excluded from membership in the Securities Investor
Protection Corporation (SIPC) and that are not SIPC members; [and] or
(b) whose business consists exclusively of the sale of investments that
are ineligible for SIPC protection, shall advise all new customers, in
writing, at the opening of an account, that they may obtain information
about SIPC, including the SIPC brochure, by contacting SIPC, and also
shall provide the Web site address and telephone number of SIPC. In
addition, such members shall provide all customers with the same
information, in writing, at least once each year. In cases where both
an introducing firm and clearing firm service an account, the firms may
assign these requirements to one of the firms.
* * * * *
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
On May 10, 2006, the Commission approved new Rule 2342 (SIPC
Information) to require NASD members, except those members (a) that
pursuant to Section 3(a)(2)(A)(i) through (iii) of the Securities
Investor Protection Act of 1970 (``SIPA'') are excluded from membership
in the Securities Investor Protection Corporation (``SIPC'') and that
are not SIPC members; or (b) whose business consists exclusively of the
sale of investments that are ineligible for SIPC protection, to provide
new customers, and all customers annually, with certain information
about SIPC.\6\ As approved, however, the rule text could be mistakenly
read to except only those members that are excluded from membership in
SIPC and are not SIPC members, and also have a business consisting
exclusively of investment products that are ineligible for SIPC
protection. Accordingly, NASD is filing this proposed rule change to
delete the ``and'' between paragraphs (a) and (b) of new Rule 2342 and
replace it with an ``or'' to clarify that the rule excepts from its
requirements a member that meets the conditions in either paragraphs
(a) or (b).
---------------------------------------------------------------------------
\6\ See supra note 5.
---------------------------------------------------------------------------
NASD has filed the proposed rule change for immediate
effectiveness. The effective date of new Rule 2342, as amended by this
proposed rule change, is November 6, 2007.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among
other things, that NASD 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 protection of investors and the public interest in
that it will avoid any confusion when reading the provisions of Rule
2342.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD does not believe that the proposed rule change will result in
any
[[Page 32935]]
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.\8\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78a.
---------------------------------------------------------------------------
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) \9\ of the Act and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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-2007-036 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-2007-036. 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 the File Number SR-NASD-2007-
036 and should be submitted on or before July 5, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-11441 Filed 6-13-07; 8:45 am]
BILLING CODE 8010-01-P
