Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NASD Rules To Extend the Closing Time of the NASD/NYSE Trade Reporting Facility to 8 p.m., 34499-34500 [E7-12092]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Notices
34499
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–2007–63 and should
be submitted on or before July 13, 2007.
system closing time from 6:30 p.m. to 8
p.m. (Eastern Time), which conforms
with the system closing time of the
NASD/Nasdaq Trade Reporting Facility
(the ‘‘NASD/Nasdaq TRF’’). In addition,
NASD is proposing certain technical,
conforming changes to Rule 4632E and
Rules 4632 and 6130 relating to the
NASD/Nasdaq TRF. The text of the
proposed rule change is available at
https://www.nasd.com, NASD, and the
Commission’s Public Reference Room.
Date, amendments will become effective
pursuant to SR–NASD–2007–014 which
will, among other things, adopt new
paragraph (a)(5)(H) of Rule 4632E.6
NASD also is proposing to amend that
provision to reflect a system closing
time of 8 p.m. The proposed rule change
will allow market participants to timely
report more trades taking place after
normal market hours to the NASD/
NYSE TRF, as they can do today to the
NASD/Nasdaq TRF.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12080 Filed 6–21–07; 8:45 am]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Technical, Non-Substantive Rule
Changes
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55916; File No. SR–NASD–
2007–037]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NASD Rules
To Extend the Closing Time of the
NASD/NYSE Trade Reporting Facility
to 8 p.m.
June 15, 2007.
rwilkins on PROD1PC63 with NOTICES
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 12, 2007, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared substantially by
NASD. NASD filed the proposed 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to amend Rules
4632E and 6130E relating to the NASD/
NYSE Trade Reporting Facility (the
‘‘NASD/NYSE TRF’’) to change the
7 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).
4 17 CFR 240.19b–4(f)(6).
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
Extension of Operating Hours of NASD/
NYSE TRF
The NASD/Nasdaq TRF and NASD/
NYSE TRF provide NASD members
with mechanisms for reporting lockedin transactions in exchange-listed
securities effected otherwise than on an
exchange. Currently, the NASD/NYSE
TRF trade reporting rules reflect a
system closing time of 6:30 p.m.
(Eastern Time), which until recently
was the system closing time of the
NASD/Nasdaq TRF and UTP Securities
Information Processor (‘‘SIP’’). Effective
September 18, 2006, the UTP SIP system
closing time was extended from 6:30
p.m. to 8 p.m. (Eastern Time) and, to
accommodate the extended UTP SIP
system closing time, the closing time of
the NASD/Nasdaq TRF subsequently
was extended from 6:30 p.m. to 8 p.m.
(Eastern Time).5
NASD is proposing to extend the
system hours of the NASD/NYSE TRF
from 6:30 p.m. to 8 p.m. (Eastern Time).
Specifically, NASD is proposing to
amend Rules 4632E(a) and (g) and
6130E(f) to reflect a system closing time
of 8 p.m. (Eastern Time). In addition, on
the Regulation NMS Pilot Stocks Phase
1 15
VerDate Aug<31>2005
16:51 Jun 21, 2007
5 See
Securities Exchange Act Release No. 54773
(November 17, 2006), 71 FR 68665 (November 27,
2006) (SR–NASD–2006–120).
Jkt 211001
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
NASD is proposing a technical, nonsubstantive change to Rule 6130(g) to
clarify that the system closing time for
the NASD/Nasdaq TRF and OTC
Reporting Facility is 8 p.m., not 6:30
p.m. (Eastern Time). Rule 6130(g)
became effective after SR–NASD–2006–
120 was filed and thus was not included
in the proposed rule change to extend
the system closing time from 6:30 to 8
p.m. (Eastern Time).
Additionally, NASD is proposing
technical, non-substantive changes to
Rule 4632(a)(2)(B) and (D) relating to the
NASD/Nasdaq TRF and Rule
4632E(a)(2)(B) and (D) relating to the
NASD/NYSE TRF for the sake of
internal consistency and to conform to
the rules relating to the other NASD
Trade Reporting Facilities (see Rule
4632C(a)(2)(B) and (D) and Rule
4632D(a)(2)(B) and (D)). Specifically, the
technical changes will clarify that
reports submitted on an ‘‘as/of’’ basis
pursuant to these provisions should be
reported the following business day
(T+1).
NASD is filing the proposed rule
change for immediate effectiveness. The
proposed rule change will not become
operative prior to the 30th day after the
date of filing. NASD will announce the
operative date on its Web site.
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 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, by affording market
participants additional time to report
trades taking place after normal market
hours, the proposed rule change will
6 See Securities Exchange Act Release No. 55346
(February 26, 2007), 72 FR 9807 (March 5, 2007)
(SR–NASD–2007–014).
7 15 U.S.C. 78o–3(b)(6).
E:\FR\FM\22JNN1.SGM
22JNN1
34500
Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Notices
result in more timely and accurate trade
reporting and thus greater transparency.
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 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 8 and Rule 19b–4(f)(6) thereunder.9
At any time within 60 days of the filing
of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
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:
rwilkins on PROD1PC63 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–2007–037 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.
8 15
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
VerDate Aug<31>2005
16:51 Jun 21, 2007
All submissions should refer to File
Number SR–NASD–2007–037. 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–2007–037 and
should be submitted on or before July
13, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12092 Filed 6–21–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55910; File No. SR–Phlx–
2007–26]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Order Granting Approval to a
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to PriceImproved Linkage P/A Orders
June 15, 2007
On March 21, 2007, the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’ or
‘‘Exchange’’) 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
10 17
1 15
Jkt 211001
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00075
Fmt 4703
Sfmt 4703
thereunder,2 a proposed rule change to
permit Exchange specialists to execute
Linkage Principal Acting as Agent
(‘‘P/A’’) Orders 3 that are sent to, and
price-improved on, another exchange,
and subsequently presented for
execution on the Phlx against customer
limit orders on the limit order book that
give rise to the initial P/A Order, at a
price other than the minimum trading
increment applicable to the particular
series traded. On May 2, 2007, the
Exchange filed Amendment No. 1 to the
proposed rule change. The proposed
rule change was published for comment
in the Federal Register on May 15,
2007.4 The Commission received no
comment letters on the proposal. This
order approves the proposed rule
change as modified by Amendment No.
1.
After careful review of the proposal,
the Commission finds that the proposed
rule change, as modified by Amendment
No. 1, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.5 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(5) of the Act,6 which requires,
among other things, that the rules of an
exchange be designed to prevent
fraudulent and manipulative acts, 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.
In support of this proposal, the
Exchange has represented that recently
some P/A Orders have been executed on
other exchanges at improved prices in
penny increments after participating in
a price-improvement auction process on
the other exchange, resulting in the
executed P/A Order being delivered
back to the Exchange at a price that is
expressed in other than the Exchange’s
minimum trading increment.
Phlx Rule 1034, Minimum
Increments, currently provides that
options quoting at $3.00 or higher have
2 17
CFR 240.19b–4.
P/A Order is an order under the Plan for the
Purpose of Creating and Operating an Intermarket
Option Linkage (‘‘Linkage Plan’’), for the principal
account of a specialist (or equivalent entity on
another Participant Exchange that is authorized to
represent Public Customer orders), reflecting the
terms of a related unexecuted Public Customer
order for which the specialist is acting as agent. See
Phlx Rule 1083(k)(i).
4 See Securities Exchange Act Release No. 55729
(May 9, 2007), 72 FR 27347.
5 In approving this proposed rule change, the
Commission 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. 78f(b)(5).
3A
E:\FR\FM\22JNN1.SGM
22JNN1
]]>Agencies
[Federal Register Volume 72, Number 120 (Friday, June 22, 2007)]
[Notices]
[Pages 34499-34500]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12092]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55916; File No. SR-NASD-2007-037]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend NASD Rules To Extend the Closing Time of the NASD/
NYSE Trade Reporting Facility to 8 p.m.
June 15, 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 12, 2007, the National Association of Securities Dealers, Inc.
(``NASD'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared substantially by NASD.
NASD filed the proposed 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 is proposing to amend Rules 4632E and 6130E relating to the
NASD/NYSE Trade Reporting Facility (the ``NASD/NYSE TRF'') to change
the system closing time from 6:30 p.m. to 8 p.m. (Eastern Time), which
conforms with the system closing time of the NASD/Nasdaq Trade
Reporting Facility (the ``NASD/Nasdaq TRF''). In addition, NASD is
proposing certain technical, conforming changes to Rule 4632E and Rules
4632 and 6130 relating to the NASD/Nasdaq TRF. The text of the proposed
rule change is available at https://www.nasd.com, NASD, 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
Extension of Operating Hours of NASD/NYSE TRF
The NASD/Nasdaq TRF and NASD/NYSE TRF provide NASD members with
mechanisms for reporting locked-in transactions in exchange-listed
securities effected otherwise than on an exchange. Currently, the NASD/
NYSE TRF trade reporting rules reflect a system closing time of 6:30
p.m. (Eastern Time), which until recently was the system closing time
of the NASD/Nasdaq TRF and UTP Securities Information Processor
(``SIP''). Effective September 18, 2006, the UTP SIP system closing
time was extended from 6:30 p.m. to 8 p.m. (Eastern Time) and, to
accommodate the extended UTP SIP system closing time, the closing time
of the NASD/Nasdaq TRF subsequently was extended from 6:30 p.m. to 8
p.m. (Eastern Time).\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54773 (November 17,
2006), 71 FR 68665 (November 27, 2006) (SR-NASD-2006-120).
---------------------------------------------------------------------------
NASD is proposing to extend the system hours of the NASD/NYSE TRF
from 6:30 p.m. to 8 p.m. (Eastern Time). Specifically, NASD is
proposing to amend Rules 4632E(a) and (g) and 6130E(f) to reflect a
system closing time of 8 p.m. (Eastern Time). In addition, on the
Regulation NMS Pilot Stocks Phase Date, amendments will become
effective pursuant to SR-NASD-2007-014 which will, among other things,
adopt new paragraph (a)(5)(H) of Rule 4632E.\6\ NASD also is proposing
to amend that provision to reflect a system closing time of 8 p.m. The
proposed rule change will allow market participants to timely report
more trades taking place after normal market hours to the NASD/NYSE
TRF, as they can do today to the NASD/Nasdaq TRF.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 55346 (February 26,
2007), 72 FR 9807 (March 5, 2007) (SR-NASD-2007-014).
---------------------------------------------------------------------------
Technical, Non-Substantive Rule Changes
NASD is proposing a technical, non-substantive change to Rule
6130(g) to clarify that the system closing time for the NASD/Nasdaq TRF
and OTC Reporting Facility is 8 p.m., not 6:30 p.m. (Eastern Time).
Rule 6130(g) became effective after SR-NASD-2006-120 was filed and thus
was not included in the proposed rule change to extend the system
closing time from 6:30 to 8 p.m. (Eastern Time).
Additionally, NASD is proposing technical, non-substantive changes
to Rule 4632(a)(2)(B) and (D) relating to the NASD/Nasdaq TRF and Rule
4632E(a)(2)(B) and (D) relating to the NASD/NYSE TRF for the sake of
internal consistency and to conform to the rules relating to the other
NASD Trade Reporting Facilities (see Rule 4632C(a)(2)(B) and (D) and
Rule 4632D(a)(2)(B) and (D)). Specifically, the technical changes will
clarify that reports submitted on an ``as/of'' basis pursuant to these
provisions should be reported the following business day (T+1).
NASD is filing the proposed rule change for immediate
effectiveness. The proposed rule change will not become operative prior
to the 30th day after the date of filing. NASD will announce the
operative date on its Web site.
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 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, by affording market participants
additional time to report trades taking place after normal market
hours, the proposed rule change will
[[Page 34500]]
result in more timely and accurate trade reporting and thus greater
transparency.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 \8\ and
Rule 19b-4(f)(6) thereunder.\9\ At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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-2007-037 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-2007-037. 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-2007-037 and should be submitted on or before July 13, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E7-12092 Filed 6-21-07; 8:45 am]
BILLING CODE 8010-01-P
