[Federal Register Volume 68, Number 204 (Wednesday, October 22, 2003)]
[Notices]
[Page 60430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26589]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48599; File No. SR-NASD-2003-112]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change and Amendment No. 1 Thereto by the National 
Association of Securities Dealers, Inc. Relating to Locked Markets in 
the Nasdaq InterMarket

October 7, 2003.
    On July 18, 2003, the National Association of Securities Dealers, 
Inc. (``NASD'' or ``Association''), through its subsidiary, the Nasdaq 
Stock Market, Inc. (``Nasdaq''), filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 
19b-4 thereunder,\2\ to amend NASD Rule 5263 which deals with locked 
and crossed markets in the Nasdaq InterMarket. On August 5, 2003, the 
Association submitted Amendment No. 1 to the proposed rule change.\3\ 
The proposed rule change, as amended, was published for comment in the 
Federal Register on September 3, 2003.\4\ The Commission received no 
comments on the proposal. This order approves the proposed rule change, 
as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Mary M. Dunbar, Vice President and Deputy 
General Counsel, Nasdaq, to Katherine England, Assistant Director, 
Division of Market Regulation, Commission, dated August 4, 2003 
(``Amendment No. 1'').
    \4\ See Securities Exchange Act Release No. 48412 (August 26, 
2003), 68 FR 52433.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities association.\5\ 
Specifically, the Commission believes that the proposed rule change is 
consistent with the provisions of Section 15A(b)(6) of the Act,\6\ 
which requires, among other things, that NASD's rules be designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, and, in general, to protect 
investors and the public interest. The Commission believes that 
applying the same rule for locked and crossed markets that occur in the 
Intermarket Trading System (``ITS'') Plan will eliminate the disparity 
that currently exists between the ITS Plan and the Nasdaq InterMarket.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3(b)(6).
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    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NASD-2003-112), as amended, 
is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-26589 Filed 10-21-03; 8:45 am]
BILLING CODE 8010-01-P