[Federal Register Volume 68, Number 202 (Monday, October 20, 2003)]
[Notices]
[Pages 59961-59962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26352]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48625; File No. SR-NASD-2003-152]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by National Association of 
Securities Dealers, Inc. Reflecting the Delayed Implementation of Rule 
Changes Regarding Reporting of Transactions Conducted Through 
Electronic Communications Networks to the Automated Confirmation 
Transaction Service

October 10, 2003.
    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 October 7, 2003, 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. Pursuant to 
Section 19(b)(3)(A)(i) of the Act \3\ and Rule 19b-4(f)(1) 
thereunder,\4\ Nasdaq has designated this proposal as constituting a 
stated policy, practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule, which renders the 
proposed rule change effective immediately upon filing. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq has delayed until October 27, 2003 the implementation of 
rule changes effected by SR-NASD-2003-98.\5\ There is no proposed rule 
language.
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    \5\ See Securities Exchange Act Release No. 48442 (September 4, 
2003), 68 FR 53766 (September 12, 2003) (SR-NASD-2003-98) (approval 
order); Securities Exchange Act Release No. 48239 (July 28, 2003), 
68 FR 45870 (August 4, 2003) (SR-NASD-2003-98) (notice of filing).
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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
    The purpose of this rule filing is to notify the Commission and 
other interested parties of the delay until October 27, 2003 of the 
implementation of the proposed rule change in SR-NASD-2003-98.\6\ In 
that filing, Nasdaq amended the various NASD rules governing trade 
reporting to define with greater clarity the reporting obligations 
applicable to transactions executed through electronic communications 
networks (``ECNs'') that are reported to the Automated Confirmation 
Transaction Service. Under the filing, the rule change was to be 
implemented thirty days after approval by the Commission (i.e., on 
October 6, 2003). However, several ECNs have informed Nasdaq that they 
did not receive adequate notice of the rule change in order to meet the 
October 6, 2003 implementation date. Accordingly, Nasdaq is delaying 
the implementation date of SR-NASD-2003-98 for three weeks, until 
October 27, 2003. Nasdaq will inform market participants of the delay 
through a Head Trader Alert posted on www.nasdaqtrader.com.
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    \6\ Id.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act,\7\ in general, and with 
Section 15A(b)(6) of the Act,\8\ in particular, in that it is designed 
to prevent fraudulent and manipulative acts and practices, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, and to protect investors and 
the public interest.
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    \7\ 15 U.S.C. 78o-3.
    \8\ 15 U.S.C. 78o-3(b)(6).
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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, 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 with respect 
to the proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \9\ and Rule 19b-4(f)(1) thereunder because 
it constitutes a stated policy, practice or interpretation with respect 
to the meaning, administration, or enforcement of an existing rule.\10\ 
At any time within 60 days of the filing of such proposed rule change, 
the Commission may summarily abrogate such 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 17 CFR 240.19b-4(f)(1).

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[[Page 59962]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change in 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 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-2003-152 
should be submitted by November 10, 2003.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-26352 Filed 10-17-03; 8:45 am]
BILLING CODE 8010-01-P