[Federal Register Volume 67, Number 189 (Monday, September 30, 2002)]
[Notices]
[Pages 61367-61368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24698]



[[Page 61367]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46532; File No. SR-NASD-2002-118]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc., Relating to the Extension of a Pilot Program 
Making Available Certain Nasdaq Services and Facilities Until 6:30 p.m. 
Eastern Time

September 23, 2002.
    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 August 30, 2002, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq''), 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 by Nasdaq. Nasdaq filed 
this proposal 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(f)(6)
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    Nasdaq proposes to extend through January 31, 2003 a pilot program 
making available several Nasdaq services and facilities until 6:30 P.M. 
Eastern Time. Nasdaq has designated this proposal as non-controversial 
and requests that the Commission waive both the five-day notice 
requirement and 30-day operative delay contained in Rule 19b-
4(f)(6)(iii) under the Act.\5\ Nasdaq proposes no substantive changes 
to the pilot program other than extending its operation through January 
31, 2003.
---------------------------------------------------------------------------

    \5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    In its filing with the Commission, Nasdaq 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. Nasdaq 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
    Nasdaq proposes to extend through January 31, 2003 its current 
pilot program that makes available certain Nasdaq systems and 
facilities until 6:30 P.M. Eastern Time.\6\ The Commission originally 
approved the pilot on October 13, 1999.\7\ The pilot will continue to 
operate under the same terms and conditions as set forth in the 
Commission's original approval order, including mandating 90-second 
trade reporting until 6:30 P.M. Eastern Time.
---------------------------------------------------------------------------

    \6\ Nasdaq has also filed with the Commission a proposed rule 
change pursuant to Section 19(b)(2) of the Act to make Nasdaq's 
after-hours pilot program permanent. See SR-NASD-2002-119. Under 
this proposal, the pilot would become permanent under the same terms 
and conditions as set forth in the Commission's order approving the 
pilot. See Securities Exchange Act Release No. 42003 (October 13, 
1999), 64 FR 56554 (October 20, 1999).
    \7\ See Securities Exchange Act Release No. 42003 (October 13, 
1999); 64 FR 56554 (October 20, 1999).
---------------------------------------------------------------------------

2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 15A of the Act,\8\ in general and with 
section 15A(b)(6) of the Act,\9\ in particular, in that it is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3.
    \9\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

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

    Nasdaq 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 and Rule 
19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of a rule change pursuant 
to section 19(b)(3)(A) of the Act,\11\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------

    Nasdaq has requested that the Commission waive the five-day pre-
filing notice requirement and the 30-day operative delay. The 
Commission believes waiving the five-day pre-filing notice requirement 
and the 30-day operative delay is consistent with the protection of 
investors and the public interest. Such waivers will allow the program 
to operate without interruption through January 31, 2003. For these 
reasons, the Commission designates the proposal to be effective and 
operative upon filing with the Commission.\12\
---------------------------------------------------------------------------

    \12\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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

[[Page 61368]]

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 file 
number SR-NASD-2002-118 should be submitted by October 21, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-24698 Filed 9-27-02; 8:45 am]
BILLING CODE 8010-01-P