Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Extending the Portfolio Margin Pilot Program, 41375-41377 [E7-14504]
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Federal Register / Vol. 72, No. 144 / Friday, July 27, 2007 / Notices
41375
Securities are no longer listed or trading
on the original listing market.
information regarding the applicable
Underlying Index or portfolio.
SECURITIES AND EXCHANGE
COMMISSION
Surveillance
Acceleration
The Commission notes that any
Index-Linked Securities approved for
listing and/or trading would be subject
to the Exchange’s existing surveillance
procedures governing equities, options,
and exchange-traded funds, as well as
procedures the Exchange represents it
has developed to closely monitor
activity in such securities and the
Underlying Indexes and/or portfolios.
The Exchange also has represented that
its surveillance procedures are adequate
to properly monitor the trading of
Index-Linked Securities listed pursuant
to the proposed generic listing standards
and that it will be able to obtain
necessary trading and beneficial holder
information from the primary trading
markets for the underlying components,
either pursuant to bilateral information
sharing agreements with those markets
or because those markets are full or
affiliate members of ISG.
[Release No. 34–56108; File No. SR–NASD–
2007–045]
The Commission finds good cause for
approving the proposed rule change, as
modified by Amendment No. 1 thereto,
before the 30th day after the date of
publication of notice of filing thereof in
the Federal Register. The Exchange
requested accelerated approval of the
proposal to facilitate the prompt trading
of Index-Linked Securities pursuant to
UTP based on the specified criteria of
proposed ISE Rules 2100, 2101, and
2130. The Commission notes that the
Exchange’s proposed generic listing
standards for Index-Linked Securities
are substantially based on previously
approved listing standards for such
securities 30 and presently is not aware
of any regulatory issue that should
cause it to revisit that finding or would
preclude the trading of such securities
on the Exchange. Therefore, accelerating
approval of this proposal should benefit
investors by creating, without undue
delay, additional competition in the
market for Index-Linked Securities,
subject to the standards and
representations discussed herein.
Therefore, the Commission finds good
cause, consistent with section 19(b)(2)
of the Act,31 to approve the proposed
rule change on an accelerated basis.
Regulatory Information Circular
The Exchange has represented that it
will distribute, as appropriate, a
Regulatory Information Circular to
EAMs describing the product, the
specific structure of the product, and
the corresponding risks of transacting in
Index-Linked Securities. In addition, the
Regulatory Information Circular will set
forth the Exchange’s suitability
requirements with respect to
recommendations in transactions in
Index-Linked Securities to customers
and the prospectus delivery
requirements.
jlentini on PROD1PC65 with NOTICES
Firewall Procedures
The Exchange has further represented
that if the Underlying Index is
maintained by a broker-dealer, such
broker-dealer will establish a ‘‘firewall’’
around personnel responsible for the
maintenance of such Underlying Index
or who have access to information
concerning changes and adjustments to
the Underlying Index. As an added
measure, a third-party who is not a
broker-dealer will be required to
calculate the value of the Underlying
Index. In addition, the Exchange has
stated that any advisory committee,
supervisory board, or similar entity that
advises an Underlying Index licensor or
administrator or that makes decisions
regarding the Underlying Index or
portfolio composition, methodology,
and related matters must implement and
maintain, or be subject to, procedures
designed to prevent the use and
dissemination of material, non-public
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16:53 Jul 26, 2007
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V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,32 that the
proposed rule change (SR–ISE–2007–
47), as modified by Amendment No. 1
thereto, be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.33
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14502 Filed 7–26–07; 8:45 am]
July 19, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on July 2, 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
substantially prepared by NASD. NASD
has designated the proposed rule change
as constituting 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 filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD proposes to extend through
July 31, 2008 the portfolio margin pilot
program set forth in Rule 2520(g). The
portfolio margin pilot program permits
members to margin certain products
according to a prescribed portfolio
margin methodology and is set to expire
on July 31, 2007. There is no change to
the rule text with this proposed rule
change. The text of the proposed rule
change is available at NASD, the
Commission’s Public Reference Room,
and https://www.nasd.com.
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
BILLING CODE 8010–01–P
PO 00000
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Extending the Portfolio
Margin Pilot Program
30 See
1 15
31 15
supra note 26.
U.S.C. 78s(b)(2).
2 17
32 Id.
33 17
CFR 200.30–3(a)(12).
Frm 00091
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4.
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41376
Federal Register / Vol. 72, No. 144 / Friday, July 27, 2007 / Notices
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
jlentini on PROD1PC65 with NOTICES
On February 12, 2007, NASD filed
SR–NASD–2007–013 for immediate
effectiveness to establish a portfolio
margin pilot program that permits
member firms to elect to margin certain
products according to a prescribed
portfolio margin methodology.5 The
portfolio margin pilot program is
substantially similar to margin rule
amendments by the New York Stock
Exchange (‘‘NYSE’’) and the Chicago
Board Options Exchange (‘‘CBOE’’),
which were approved by the
Commission.6 Consistent with the
amended NYSE and CBOE portfolio
margin programs, NASD’s pilot, as
proposed in SR–NASD–2007–013,
started on April 2, 2007 and ends on
July 31, 2007.
NASD proposes to extend the
operation of the pilot for an additional
one-year period to July 31, 2008. NASD
believes that extending the pilot for
twelve months is warranted in that time
is needed to assess the operation and
utility of the program, especially in light
of the fact that the rules establishing the
pilot, effective April 2, 2007, made
equities, equity options, narrow-based
index options, unlisted derivatives and
security futures eligible for portfolio
margining. An extension will enable
NASD to determine whether the
program better aligns margin
requirements with the actual risk of
hedged products, thereby potentially
alleviating excess margin calls and
potentially reducing the risk of forced
5 See Exchange Act Release No. 55471 (March 14,
2007), 72 FR 13149 (March 20, 2007) (Notice of
Filing and Immediate Effectiveness of SR–NASD–
2007–013).
6 See Exchange Act Release No. 54918 (December
12, 2006), 71 FR 75790 (December 18, 2006) (SR–
NYSE–2006–13, relating to further amendments to
the NYSE’s portfolio margin pilot program);
Exchange Act Release No. 54125 (July 11, 2006), 71
FR 40766 (July 18, 2006) (SR–NYSE–2005–93,
relating to amendments to the NYSE’s portfolio
margin pilot program); Exchange Act Release No.
52031 (July 14, 2005) 70 FR 42130 (July 21, 2005)
(SR–NYSE–2002–19, relating to the NYSE’s original
portfolio margin pilot). See also Exchange Act
Release No. 54919 (December 12, 2006), 71 FR
75781 (December 18, 2006) (SR–CBOE–2006–014,
relating to amendments to the CBOE’s portfolio
margin pilot); Exchange Act Release No. 52032 (July
14, 2005) 70 FR 42118 (July 21, 2005) (SR–CBOE–
2002–03, relating to the CBOE’s original portfolio
margin pilot).
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16:53 Jul 26, 2007
Jkt 211001
liquidations of positions in customer
accounts. For these reasons, NASD
requests that the Commission extend the
pilot program until July 31, 2008.
NASD has filed the proposed rule
change for immediate effectiveness.7
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of section 15A(b)(6) of the Act,8 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 a one-year extension will
enable NASD to evaluate the operation
and utility of the portfolio margin pilot
program to determine whether the
program better aligns the margin
requirements with actual risk.
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 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 prior to 30 days after the date
of filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
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.
7 The operative date of the proposed rule change
will be August 1, 2007.
8 15 U.S.C. 78o–3(b)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6).
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Frm 00092
Fmt 4703
Sfmt 4703
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–NASD–2007–045 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–2007–045. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
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–2007–045 and
should be submitted on or before
August 17, 2007.
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Federal Register / Vol. 72, No. 144 / Friday, July 27, 2007 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14504 Filed 7–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56113; File No. SR–NSX–
2007–05]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Order
Approving Proposed Rule Change to
Modify Chapter VII of the Exchange’s
Rules Regarding Suspensions of an
ETP Holder by Certain Exchange
Officers
July 20, 2007.
I. Introduction
On May 9, 2007, the National Stock
Exchange, Inc. (‘‘NSX’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule
change, pursuant to section 19(b)(1) of
the Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2 to
modify Chapter VII of the Exchange’s
rules to provide that the Chairman of
the Exchange’s Board of Directors
(‘‘Chairman’’) or the Exchange’s Chief
Regulatory Officer, or their respective
designees, would have the authority to
summarily suspend or place limitations
or conditions on an ETP Holder or
summarily suspend a person from
access to Exchange services in certain
circumstances. Notice of the proposed
rule change was published for comment
in the Federal Register on June 18,
2007.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
jlentini on PROD1PC65 with NOTICES
II. Description of the Proposed Rule
Change
NSX Rule 7.1 currently authorizes the
Chairman of the NSX Board of Directors
(‘‘Chairman’’) or NSX’s President
(‘‘President’’) to summarily suspend an
ETP Holder, or impose such conditions
and restrictions upon an ETP Holder as
are reasonably necessary for the
protection of investors, the Exchange,
the creditors, and the customers of such
ETP Holder, if such ETP Holder, among
other things, has failed to perform its
contracts, is insolvent, or is in such
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 55893
(June 11, 2007), 72 FR 33551.
1 15
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16:53 Jul 26, 2007
Jkt 211001
financial or operational condition or
operating its business in such a manner
that it cannot be permitted to continue
in business with safety to its customers,
creditors, and other ETP Holders of the
Exchange.4 The Chairman or President
may also lift such a suspension without
further proceedings, if appropriate.5
NSX Rule 7.6 currently permits the
Chairman or President to, under certain
circumstances, summary limit or
prohibit, persons from access to services
offered by the Exchange.
NSX proposes to amend Rules 7.1 and
7.6 to authorize the Chairman or NSX’s
Chief Regulatory Officer (‘‘CRO’’), or
their respective designees, to impose
and lift suspensions as described above.
NSX’s President would no longer have
such authority. The Exchange represents
that the designee for the Chairman
would be the Chairman of the
Exchange’s Regulatory Oversight
Committee (‘‘ROC’’), a member of the
ROC, or another independent member of
the Exchange’s Board of Directors,6 in
that order of priority. The designee for
the CRO would be an officer in the
Exchange’s Regulatory Services
Division. The proposal does not
otherwise modify NSX’s rules regarding
suspension, including its provisions for
review of summary actions.
III. Discussion and Commission
Findings
The Commission has reviewed the
proposed rule change and finds that it
is consistent with the Act and the rules
and regulations thereunder applicable to
a national securities exchange.7
Specifically, the Commission finds that
the proposed rule change furthers the
objectives of section 6(b)(1) 8 of the Act,
which requires the Exchange to be so
organized and have the capacity to be
able to carry out the purposes of the Act
and to comply, and to enforce
compliance by its members, with the
Act and the rules of the Exchange. In
addition, the Commission finds that the
proposed rule change, as amended, is
consistent with section 6(b)(5) of the
Act,9 which requires, among other
things, that the rules of a national
NSX Rule 7.1(a).
NSX Rule 7.1(c).
6 NSX By-Law Section 1.1(I)(1) defines
‘‘Independent Director’’ as a member of the Board
that the Board has determined to have no material
relationship with the Exchange or any affiliate of
the Exchange, or any ETP Holder or any affiliate of
any ETP Holder, other than as a member of the
Board.
7 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(1).
9 15 U.S.C. 78f(b)(5).
PO 00000
4 See
5 See
Frm 00093
Fmt 4703
Sfmt 4703
41377
securities exchange be designed 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.
The Commission believes that the
reallocation of authority under NSX
Rules 7.1 and 7.6 from the Chairman
and President to the Chairman and CRO,
or their respective designees, is
consistent with the Act. The
Commission also believes that the
reallocation is designed to provide for
continuity in the event that the
Chairman or CRO is unavailable. The
Commission notes that the Exchange’s
rules governing the review of
suspensions remain unchanged.
IV. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,10 that the
proposed rule change (File No. SR–
NSX–2007–05) be, and hereby is,
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–14506 Filed 7–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56107; File No. SR–NYSE–
2007–56]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Extending
the Portfolio Margin Pilot Program
Under NYSE Rules 431 (Margin
Requirements) and 726 (Delivery of
Options Disclosure Document and
Prospectus)
July 19, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on June 28, 2007, the New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by the Exchange.
10 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 17
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]]>Agencies
[Federal Register Volume 72, Number 144 (Friday, July 27, 2007)]
[Notices]
[Pages 41375-41377]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14504]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56108; File No. SR-NASD-2007-045]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Extending the Portfolio Margin Pilot Program
July 19, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on July 2, 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 substantially prepared by NASD. NASD has designated the proposed
rule change as constituting 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 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD proposes to extend through July 31, 2008 the portfolio margin
pilot program set forth in Rule 2520(g). The portfolio margin pilot
program permits members to margin certain products according to a
prescribed portfolio margin methodology and is set to expire on July
31, 2007. There is no change to the rule text with this proposed rule
change. The text of the proposed rule change is available at NASD, the
Commission's Public Reference Room, and https://www.nasd.com.
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
[[Page 41376]]
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 February 12, 2007, NASD filed SR-NASD-2007-013 for immediate
effectiveness to establish a portfolio margin pilot program that
permits member firms to elect to margin certain products according to a
prescribed portfolio margin methodology.\5\ The portfolio margin pilot
program is substantially similar to margin rule amendments by the New
York Stock Exchange (``NYSE'') and the Chicago Board Options Exchange
(``CBOE''), which were approved by the Commission.\6\ Consistent with
the amended NYSE and CBOE portfolio margin programs, NASD's pilot, as
proposed in SR-NASD-2007-013, started on April 2, 2007 and ends on July
31, 2007.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 55471 (March 14, 2007), 72 FR
13149 (March 20, 2007) (Notice of Filing and Immediate Effectiveness
of SR-NASD-2007-013).
\6\ See Exchange Act Release No. 54918 (December 12, 2006), 71
FR 75790 (December 18, 2006) (SR-NYSE-2006-13, relating to further
amendments to the NYSE's portfolio margin pilot program); Exchange
Act Release No. 54125 (July 11, 2006), 71 FR 40766 (July 18, 2006)
(SR-NYSE-2005-93, relating to amendments to the NYSE's portfolio
margin pilot program); Exchange Act Release No. 52031 (July 14,
2005) 70 FR 42130 (July 21, 2005) (SR-NYSE-2002-19, relating to the
NYSE's original portfolio margin pilot). See also Exchange Act
Release No. 54919 (December 12, 2006), 71 FR 75781 (December 18,
2006) (SR-CBOE-2006-014, relating to amendments to the CBOE's
portfolio margin pilot); Exchange Act Release No. 52032 (July 14,
2005) 70 FR 42118 (July 21, 2005) (SR-CBOE-2002-03, relating to the
CBOE's original portfolio margin pilot).
---------------------------------------------------------------------------
NASD proposes to extend the operation of the pilot for an
additional one-year period to July 31, 2008. NASD believes that
extending the pilot for twelve months is warranted in that time is
needed to assess the operation and utility of the program, especially
in light of the fact that the rules establishing the pilot, effective
April 2, 2007, made equities, equity options, narrow-based index
options, unlisted derivatives and security futures eligible for
portfolio margining. An extension will enable NASD to determine whether
the program better aligns margin requirements with the actual risk of
hedged products, thereby potentially alleviating excess margin calls
and potentially reducing the risk of forced liquidations of positions
in customer accounts. For these reasons, NASD requests that the
Commission extend the pilot program until July 31, 2008.
NASD has filed the proposed rule change for immediate
effectiveness.\7\
---------------------------------------------------------------------------
\7\ The operative date of the proposed rule change will be
August 1, 2007.
---------------------------------------------------------------------------
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\8\ 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 a one-year extension will enable
NASD to evaluate the operation and utility of the portfolio margin
pilot program to determine whether the program better aligns the margin
requirements with actual risk.
---------------------------------------------------------------------------
\8\ 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 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 prior
to 30 days after the date of filing, or such shorter time as the
Commission may designate, it has become effective pursuant to section
19(b)(3)(A) of the Act \9\ 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 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.
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-2007-045 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-2007-045. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. 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-2007-045 and should be
submitted on or before August 17, 2007.
[[Page 41377]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14504 Filed 7-26-07; 8:45 am]
BILLING CODE 8010-01-P
