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 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 http://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 (http://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 (http://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 http://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 (http://
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 (http://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