[Federal Register Volume 60, Number 3 (Thursday, January 5, 1995)]
[Notices]
[Pages 1816-1817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-193]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35167; File No. SR-NASD-94-75]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by National Association of 
Securities Dealers, Inc. Relating to the Modification of Filing Fees 
Under Sections 43(e) and 44(e) of the NASD's Code of Arbitration 
Procedure

December 28, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on December 
13, 1994, the National Association of Securities Dealers, Inc. 
(``NASD'' or ``Association'') 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 the NASD. The NASD has designated this proposal as one establishing 
or changing a fee under Section 19(b)(3)(A)(ii) of the Act, which 
renders the rule effective upon the Commission's receipt of this 
filing. The Commission is publishing this notice to solicit comments on 
the proposed rule change from interested persons. [[Page 1817]] 

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NASD is proposing to amend Sections 43(e) and 44(e) of the Code 
of Arbitration Procedure (``Code'') to modify the non-refundable filing 
fee for industry parties when submitting claims, disputes or 
controversies which do not involve, disclose or specify monetary 
relief.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the 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. The 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

    The Code presently provides in Section 43(a) that an industry 
claimant whose dispute, claim or controversy involves, discloses or 
specifies a money claim, regardless of the amount, must submit a non-
refundable claim filing fee of $500. However, the Code also provides in 
Sections 43(e) and 44(e) that any party, including public customers and 
industry parties, whose dispute, claim or controversy does not involve, 
disclose or specify monetary damages shall submit a non-refundable 
filing fee of only $250.
    The NASD has determined that there have been situations in which 
industry parties have purposely not disclosed the monetary amount of 
their claim in order to reduce the non-refundable fee from $500 to 
$250. Therefore, the NASD is proposing to amend Sections 43(e) and 
44(e) of the Code to require that a uniform, non-refundable $500 filing 
fee be assessed against all industry parties, regardless of whether the 
dispute, claim or controversy involves, discloses or specifies a money 
claim. However, Section 43(e) will retain the current claim-filing fee 
of $250 for public customers whose dispute, claim or controversy does 
not involve, disclose, or specify a money-claim.
    The NASD believes that the proposed rule change is consistent with 
the provisions of Section 15A(b)(5)\1\ of the Act, which require that 
the rules of the Association provide for the equitable allocation of 
reasonable dues, fees and other charges among members, and the 
provisions of Section 15A(b)(6) of the Act, which require that the 
rules of the Association be designed to prevent fraudulent and 
manipulative acts, promote just and equitable principles of trade, and 
protect investors and the public interest, in that the proposed rule 
clarifies that the correct filing fee for industry parties in an 
arbitration case, regardless of whether an amount of claim is stated, 
is $500, which prevents industry parties from unfairly and improperly 
avoiding the proper amount of fees to be assessed when filing a claim 
under the Code.

    \1\15 U.S.C. Sec. 78o-3.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The 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, as amended.

(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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act and subparagraph (e) of Rule 19b-
4 thereunder in that it constitutes a due, fee or other charge.
    At any time within 60 days of the filing of a rule change pursuant 
to Section 19(b)(3)(A) of the Act, the Commission may summarily 
abrogate the 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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
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 will also be 
available for inspection and copying at the principal office of the 
NASD. All submissions should refer to the file number in the caption 
above (SR-NASD-94-75) and should be submitted by [insert date 21 days 
from the date of publication].

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-193 Filed 1-4-95; 8:45 am]
BILLING CODE 8010-01-M