[Federal Register Volume 62, Number 98 (Wednesday, May 21, 1997)]
[Notices]
[Pages 27818-27819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13227]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38618; File No. SR-NASD-97-36]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by National Association of 
Securities Dealers, Inc. Relating to Redesignation of a Rule Number

May 12, 1997.
    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 May 7, 
1997, 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

[[Page 27819]]

have been prepared by the NASD. The NASD has designated this proposal 
as one concerned solely with the administration of the organization 
under Sec. 19(b)(3)(A)(iii) 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.

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

    The NASD is proposing to redesignate Rule 4623 that was approved by 
the SEC in Securities Exchange Act Release No. 38360 (March 4, 1997) 
with respect to Rule Filing SR-NASD-97-15, titled ``Penalty Bids and 
Syndicate Covering Transactions,'' as Rule 4624.

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 self-regulatory organization 
included statements concerning the purpose of and basis for the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in Section 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
    The SEC approved, effective March 4 and 14, 1997, amendments to the 
NASD rules regarding Corporate Financing, the Nasdaq Stock Market, 
Inc., and the OTC Bulletin Board that are designed to assist members in 
complying with SEC Regulation M.\1\ The NASD is proposing to change the 
rule number of Rule 4623, that was approved by the SEC in Securities 
Exchange Act Release No. 38360 (March 4, 1997) with respect to Rule 
Filing SR-NASD-97-15, titled ``Penalty Bids and Syndicate Covering 
Transactions,'' to Rule 4624. Rule 4623 was previously approved by the 
SEC in connection with SR-NASD-96-43 to designate a rule related to 
``Electronic Communications Networks'' in connection with the Order 
Execution Rules.\2\
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    \1\ Securities Exchange Act Release No. 38360 (March 4, 1997); 
Securities Exchange Act Release No. 38399 (March 14, 1997).
    \2\ Securities Exchange Act Release No. 38156 (January 10, 
1997).
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2. Statutory Basis
    The NASD believes that the proposed rule change is consistent with 
the provisions of Section 15A(b)(2) of the Act in that the proposed 
rule change will enforce and facilitate compliance by NASD members with 
the Securities Exchange Act Rules, in addition to compliance with the 
rules of the Association.

B. Self-Regulatory Organization's Statement on Burden on Competition

    NASD Regulation 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

    Because the foregoing proposed rule change concerns the 
administration of the organization in that it renumbers a rule, the 
rule change becomes effective upon filing pursuant to Section 
19(b)(3)(A)(iii) of the Act and Rule 19b-4(e) thereunder. In 
particular, the Commission believes the rule change makes a technical 
and clarifying change to an existing NASD rule. Accordingly, it neither 
significantly affects the protection of investors of the public 
interest and does not impose any significant burden on competition. 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, N.W., Washington, D.C. 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 maybe 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 and should be submitted by June 11, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-13227 Filed 5-20-97; 8:45 am]
BILLING CODE 8010-01-M