[Federal Register Volume 68, Number 17 (Monday, January 27, 2003)]
[Notices]
[Pages 3910-3911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1756]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47193; File No. SR-NQLX-2002-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by Nasdaq Liffe Markets, LLC 
Relating to Final Settlement Prices for Cash-Settled Security Futures 
Products and Trading Restrictions and Suspensions

January 15, 2003.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act'')\1\ and rule 19b-7 thereunder,\2\ notice is hereby given that 
on December 17, 2002, Nasdaq Liffe Markets, LLC (``NQLX'') filed with 
the Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule changes as described in items I, II, and III below, which 
items have been prepared by NQLX. The Commission is publishing this 
notice to solicit comments on the proposed rule changes from interested 
persons. NQLX also has certified the proposed rule changes with the 
Commodity Futures Trading Commission (``CFTC'') under section 5c(c) of 
the Commodity Exchange Act \3\ (``CEA'') on October 30, 2002, and 
December 16, 2002.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    Currently, NQLX does not intend to offer cash-settled security 
futures products. However, NQLX proposes to adopt rule 904 that would 
serve as a place holder in case NQLX ever decides to offer cash-settled 
security futures contracts. In addition, NQLX proposes to adopt rule 
426(a) to make clear that NQLX's chief executive officer or president 
has the power to restrict or suspend trading in any NQLX-listed 
contract at any time during an emergency if he believes that the 
restriction or suspension is necessary to maintain a fair and orderly 
market or is necessary or appropriate in the public interest or for the 
protection of investors. Below is the text of the proposed rule 
changes. Text in italics indicates material to be added.
* * * * *

Rule 426 Trading Restrictions and Suspensions

    (a) The Chief Executive Officer or President shall have the power 
to restrict or suspend trading in any Exchange Contract on NQLX at any 
time during an Emergency if he believes that the restriction or 
suspension is necessary to maintain a fair and orderly market or is 
necessary or appropriate in the public interest or for the protection 
of investors.

Rule 904 Contract Specifications-Security Futures Products that Cash-
Settle.

Reserved

* * * * *

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

    NQLX has prepared statements concerning the purpose of, and 
statutory basis for, the proposed rule change, burdens on competition, 
and comments received from members, participants, and others. The text 
of these statements may be examined at the places specified in item IV 
below. These statements are set forth in sections A, B, and C below.

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

1. Purpose
    Currently, NQLX does not intend to offer cash-settled security 
futures products. However, NQLX is proposing to adopt rule 904 that 
would serve as a place holder in case NQLX ever decides to offer cash-
settled security futures contracts. In addition, NQLX proposes adopting 
rule 426(a) to make clear that NQLX's chief executive officer or 
president has the power to restrict or suspend trading in any NQLX-
listed contract at any time during an emergency if he believes that the 
restriction or suspension is necessary to maintain a fair and orderly 
market or is necessary or appropriate in the public interest or for the 
protection of investors.
2. Statutory Basis
    NQLX files these proposed rules pursuant to section 19(b)(7) of the 
Act.\4\ NQLX believes that its proposed rules comply with the 
requirements under section 6(h)(3)(H) of the Act \5\ and the criteria 
under section 2(a)(1)(D)(i)(VII) of the CEA.\6\ In addition, NQLX 
believes that its proposed rules are consistent with the provisions of 
section 6 of the Act \7\ in general, and section 6(b)(5) of the Act \8\ 
in particular, which requires, among other things, that the rules of an 
exchange be designed to prevent fraudulent and manipulative acts and 
practices, and, in general, to protect investors and the public 
interest.
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    \4\ 15 U.S.C. 78s(b)(7).
    \5\ 15 U.S.C. 78f(h)(3)(H).
    \6\ 7 U.S.C. 2(a)(1)(D)(i)(VII).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NQLX does not believe that the proposed rules will result in any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

[[Page 3911]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    NQLX neither solicited nor received written comment on the proposed 
rules.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Pursuant to section 19(b)(7)(B) of the Act,\9\ the proposed rule 
changes, as filed with the Commission, became effective on December 17, 
2002.
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    \9\ 15 U.S.C. 78s(b)(7)(B).
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    Within 60 days of the date of effectiveness of the proposed rules, 
the Commission, after consultation with the CFTC, may summarily 
abrogate the proposed rules and require that the proposed rules be 
refiled in accordance with the provisions of section 19(b)(1) of the 
Act.\10\
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    \10\ 15 U.S.C. 78s(b)(1).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
rules conflict with the Act. Persons making written submissions should 
file nine copies of the submission with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Comments also may be submitted electronically to the following e-mail 
address: [email protected]. Copies of the submission, all 
subsequent amendments, all written statements with respect to the 
proposed rules that are filed with the Commission, and all written 
communications relating to the proposed rules 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 these filings will also be available for inspection and 
copying at the principal office of NQLX. Electronically submitted 
comments will be posted on the Commission's internet website (http://www.sec.gov). All submissions should refer to File No. SR-NQLX-2002-03 
and should be submitted by February 18, 2003.

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-1756 Filed 1-24-03; 8:45 am]
BILLING CODE 8010-01-P