[Federal Register Volume 59, Number 216 (Wednesday, November 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27697]


[[Page Unknown]]

[Federal Register: November 9, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. 34-34928; File No. SR-NASD-94-48]

 

Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change Amending Certain 
Current Terms and Adopting New Terms Relating to the NASDAQ System That 
Are Used in Schedule D to the NASD By-Laws and Other Parts of the 
NASD's Rules and Regulations That Are Contained in the NASD Manual

November 2, 1994.
    On September 20, 1994, the National Association of Securities 
Dealers, Inc. (``NASD'' or ``Association'') filed with the Securities 
and Exchange Commission (``SEC'' or ``Commission'') a proposed rule 
change\1\ pursuant to Section 19(b)(1) of the Securities Exchange Act 
of 1934 (``Act'')\2\ and Rule 19b-4 thereunder.\3\ The NASD proposes to 
amend certain current terms and adopt new terms related to the NASDAQ 
System that more appropriately describe the current technological 
facilities and services provided by this securities market throughout 
Schedule D to the NASD By-Laws (``Schedule D'') and other parts of the 
NASD's rules and regulations in the NASD Manual.
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    \1\The NASD amended the proposed rule change subsequent to the 
original filing on August 23, 1994.
    \2\15 U.S.C. 78s(b)(1).
    \3\17 CFR 240.19b-4.
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    Under the proposal, new nomenclature will be utilized and defined. 
For example, ``The Nasdaq Stock Market'' will replace the phrase ``the 
NASDAQ System.'' The Nasdaq Stock Market will be defined as an 
electronic securities market comprised of competing market makers whose 
trading is supported by a communications network linking them to 
quotation dissemination, trade reporting, and order execution systems. 
Further, it will be noted that The Nasdaq Stock Market provides 
specialized automation services for screen-based negotiations of 
transactions, on-line comparison of transactions, and a range of 
informational services tailored to the needs of the securities 
industry, investors and issuers. The proposal will clarify that The 
Nasdaq Stock Market consists of two distinct tiers. The first tier will 
be labeled ``The Nasdaq SmallCap Market'' or ``SCM'' and the second 
tier will be labeled the ``Nasdaq National Market'' or ``NNM''. 
Securities included for quotation in these two tiers will be labelled 
``Nasdaq Small Cap Market Securities'' or ``SCM securities'' and 
``Nasdaq National Market securities'' or ``NNM securities,'' 
respectively.
    Notice of the proposed rule change, as amended, together with its 
terms of substance, was provided by issuance of a Commission release\4\ 
and by publication in the Federal Register.\5\ No comments were 
received in response to the notice. This order approves the proposed 
rule change.
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    \4\Securities Exchange Act Rel. No. 34743 (September 28, 1994).
    \5\59 FR 50784 (October 5, 1994).
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    The Commission has determined to approve the NASD's proposal. The 
Commission finds that the rule change is consistent with the 
requirement of the Act and the rules and regulations thereunder 
applicable to the NASD, including the requirements of Section 15A(b)(6) 
of the Act.\6\ Section 15A(b)(6) requires, among other things, that the 
rules of a national securities association be designed to 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 proposed 
rule change is consistent in that the proposed new terms will indicate 
more clearly the current operation of the system as a market for 
securities with quotation dissemination, trade reporting, order 
execution capability, screen-based negotiation of transactions, on-line 
comparison of transactions, and informational services. The proposed 
new terms will also clarify that the market is composed of two distinct 
market tiers, each with different inclusion criteria that are set forth 
in different parts of Schedule D. Further, the proposed rule change 
will make clear that The Nasdaq Stock Market is operated by The Nasdaq 
Stock Market, Inc., a wholly-owned subsidiary of the Association.
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    \6\15 U.S.C. 78o-3(b)(6).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change SR-NASD-94-48 be, and hereby is, 
approved.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-27697 Filed 11-8-94; 8:45 am]
BILLING CODE 8010-01-M